Commercial arbitration outcome in dispute with MOL
Croatia has secured a full legal victory in an arbitration dispute with the Hungarian energy company MOL, after the tribunal dismissed all of MOL’s claims. The panel also ordered MOL to reimburse Croatia for arbitration-related costs. The decision covers tribunal and administrative expenses totaling €775,000, including applicable interest.
The tribunal rejected MOL’s request for compensation in its entirety. The ruling closes the dispute within the commercial arbitration process and confirms Croatia’s position in the proceedings.
Background from ICSID decision and shift to commercial arbitration
The dispute traces back to earlier proceedings initiated by MOL under an ICSID investment arbitration framework. A decision issued in July 2022 directed MOL to pursue its compensation claims through commercial arbitration rather than under the investment treaty mechanism.
After that July 2022 decision, MOL brought commercial arbitration proceedings against Croatia in 2023. The claim alleged breaches of obligations under the Gas Business Agreement and its subsequent amendment.
MOL’s claim amounts and alternative damages request
In its commercial arbitration filing, MOL sought damages of €36.15 million. The company also submitted an alternative claim seeking €91.12 million on behalf of INA.
Following review of the case, the arbitration panel ruled entirely in favor of Croatia by dismissing all claims submitted by MOL. The tribunal’s decision ends the dispute between the parties in this forum.
