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Rompetrol Files Lawsuit Against Government

Posted on: Tuesday, 19 July 2005, 18:01 CDT

Jul. 17--Rompetrol, Romania's largest private oil company, is preparing to launch legal proceedings against the Romanian government this week.

The lawsuit aims to claw back "hundreds of millions of dollars" in damages it suffered from a concerted attack by Romanian law authorities. The company regards the assault as aimed at ultimately seizing the company's main asset, the Petromidia oil refinery, so it can be resold.

The company has hired French law firm Salans to prepare the suit under a bilateral investment treaty between Romania and the Netherlands, where Rompetrol's majority shareholder Rompetrol Group NV is registered. They plan to serve a notice to the Romanian Finance Minister on Wednesday, after which the government has three months to comply before proceedings can be launched at the World Bank Arbitration Court in Washington.

Rompetrol deputy chief executive Philip Stephenson told The Business: "We think our case has got legal merit and we could go home with some money," but he said there was still time for the Romanian authorities to drop charges. "When you file the notice it doesn't mean that you have to file the claim."

In March, the Romanian General Prosecutor charged 14 managers of Rompetrol with money laundering, tax evasion and fraud.

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Copyright (c) 2005, The Business, London

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Source: Sunday Business

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