Gold Reserve has won a $1.1 billion arbitration award against Venezuela, confirmed by Portugal’s Lisbon Court of Appeal. The company is pursuing legal avenues to recover this amount and has already secured orders to attach over $1.4 billion in bank accounts. Further recovery in Portugal faces challenges, and actions are also underway in the U.S. involving Citgo Petroleum shares.
Gold Reserve has secured a significant arbitration award against Venezuela, confirmed by the Lisbon Court of Appeal. The ruling allows the Canadian mining company to pursue the enforcement of approximately $1.1 billion within Portugal. The company has already obtained court orders to attach funds in Portuguese bank accounts, collectively exceeding $1.4 billion, to facilitate recovery.
Despite this legal victory, Gold Reserve acknowledged that recovery in Portugal is not guaranteed due to various complexities, necessitating additional court orders to access the attached funds. The uncertainties present in these proceedings highlight the challenges of effectively enforcing arbitration awards within foreign jurisdictions.
In addition to its legal maneuvers in Portugal, Gold Reserve is actively pursuing enforcement actions in the United States. This includes participation in a court-ordered auction of shares held by the parent company of the Venezuelan-owned Citgo Petroleum, a key asset targeted by creditors in light of previous nationalization efforts and defaulted debt payments.
Citgo, representing Venezuela’s most valuable overseas asset, has been at the center of creditor claims arising from the nationalization policies under late President Hugo Chavez and continued under President Nicolas Maduro. The financial outcomes of the legal processes in the U.S. could potentially influence the recoverable amounts from the proceedings in Portugal, creating a delicate interplay between the two legal efforts.
Gold Reserve’s successful arbitration in Portugal against Venezuela, with a $1.1 billion award, marks a significant achievement, although the recovery process remains uncertain. With ongoing enforcement actions both in Portugal and the U.S., the outcome of these legal efforts could significantly impact the company’s ability to recuperate funds from Venezuela’s nationalized assets.
Original Source: www.mining.com
