Tribunal Dismisses Venoklim Lubricants Case Against Venezuela

A World Bank tribunal has thrown out an arbitration case pitting Netherlands-incorporated motor lubricants company Venoklim against Venezuela over a 2010 nationalization.

 

The International Centre for Settlement of Investment Disputes (ICSID) said on Friday that Venoklim is ultimately owned by Venezuelans and thus did not qualify for arbitration as a foreign company.

 

"The tribunal dismissed the case for lack of jurisdiction," wrote Venezuela's lawyer George Kahale of Curtis, Mallet-Prevost, Colt & Mosle LLP in an e-mail to Reuters on Monday. "Claimant said (the compensation sought) was a substantial amount, but the case did not reach the stage for it to specify how much."

 

There was no immediate response for a request for comment for one of Venoklim's laywers in the case. A call to the company's Dutch headquarters in Voorst went unanswered.

 

Chavez announced in 2008 he would nationalize Venoklim's Venezuelan holdings, saying that ultimate owner Franklin Duran was conspiring against the country.

 

At the time of the announcement, Duran was on trial in Miami for acting as an illegal foreign agent in the United States in a case centered around Venezuela's alleged campaign contributions to Argentine President Cristina Fernandez.

 

Duran was convicted that year. Chavez ultimately nationalized Venoklim's holdings in 2010 and state oil company PDVSA currently controls its lubricants business.

 

The Venoklim case is one of over 20 arbitration cases Venezuela is facing over sweeping nationalizations during Chavez's 14-year rule.