ZAGREB, July 27, 2018 – The Gavrilović company on Friday said that the International Centre for Settlement of Investment Disputes (ICSID) in Washington has concluded a case in which Gjuro Gavrilović and his company sued Croatia, ruling that Croatia had unlawfully expropriated the company’s property.
The panel of arbitrators rendered its award on July 26, the Petrinja-based company said in a press release signed by Gjuro Gavrilović as the company’s owner and Georg Gavrilović as a member of the management board.
Gavrilović filed for arbitration proceedings against Croatia before the ICSID in late 2012 to protect foreign investment and demanded damages in the amount of 198.5 million euro based on an Agreement between the Republic of Austria and the Republic of Croatia for the Promotion and Protection of Investments.
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.
It further notes that the investment was made in accordance with valid laws and any irregularities during the bankruptcy procedures that the Republic of Croatia objected to can exclusively be attributed to the state and its relevant institutions and not Gjuro Gavrilović.
After 25 years of unsuccessful attempts to protect their rights before the relevant Croatian institutions and all the pressures endured, including unfounded criminal proceedings, the Gavrilović company and its owner consider this award as confirmation of attempts to prove the unlawful actions by the Republic of Croatia and its institutions and the legitimacy of the said investment, the press release concluded and added that Gjuro Gavrilović and his company hope that now the company will be allowed to continue to do business without any further obstructions.