ZAGREB, July 29, 2018 – The State Prosecutor’s Office (DORH) said that the Arbitration Tribunal of the International Centre for Settlement of Investment Disputes (ICSID) in Washington practically entirely rejected Georg Gavrilović’s complaint and that Croatia succeeded 98% in this arbitration, noting that the company has been awarded just 1.49% of the amount claimed and about 30% of the costs of the procedure.
DORH recalled that the ICSID arbitration tribunal on Friday delivered its conclusion in the procedure that was submitted in 2012 by Georg Gavrilović and the Gavrilović company due to a breach of a bilateral agreement on the promotion and protection of investments between Croatia and Austria, seeking 198.5 million euro in damages and 9 million euro for the costs of the arbitration proceedings.
The arbitration tribunal found that the Republic of Croatia had violated the bilateral agreement and as such Croatia is obliged to compensate the Gavrilović company for damages in the amount of 9,699,462 kuna and 1,658,960 euro (1.49% of the amount requested) and 2,593,642 euro and 285,288 dollars for the costs of the proceedings, which is 30% of the amount requested, DORH said.
DORH said that the arbitration tribunal practically entirely rejected Georg Gavrilović’s claims and that Croatia succeeded 98% in this case considering the plaintiff demanded 198,500,000 euro in damages and 9 million euro in costs.
“Although a decision on further legal action with regard to that part of the ruling that is in favour of Gavrilović will be made after DORH analyses the decision, it is already obvious that that part of the decision is in contradiction to European Union law,” DORH said.
On Friday, the Gavrilović company reported that in the case before the ICSID filed by Gjuro Gavrilović and his company against Croatia, the arbitration tribunal had reached a unanimous conclusion that the “Republic of Croatia had unlawfully expropriated the company’s property.”
The panel of arbitrators determined that Gjuro Gavrilović’s investment, the purchase of five companies that were part of the defunct Gavrilović Holding during bankruptcy procedures, enjoys the right to protection pursuant to the Washington Convention and the agreement between Croatia and Austria, the company said in its press release.
The company further said that the investment was made in accordance with the existing laws and that the irregularities during the bankruptcy procedure which were mentioned by the Republic of Croatia can exclusively be attributed to the state and its relevant institutions and not Gjuro Gavrilović.
