Smurfit Westrock Granted Compensation in Dispute with Venezuela

SEATTLE (Scrap Monster): Smurfit Westrock announced that the tribunal constituted under the auspices of the World Bank’s International Centre for Settlement of Investment Disputes (ICSID) has granted its wholly owned subisidiary, a compensation,  in connection with the company’s dispute with Venezuelan administration. The compensation is in excess of US$468.7 million and legal costs of US$4.5 million, along with interest starting from May 31, 2024 until the date of payment.

The company had filed lawsuit against Venezuela, after the country’s government deconsolidated its operations in August 2018.

ALSO READ:

Smurfit Kappa Announces Merger Deal with WestRock to Take Effect

Smurfit Kappa Declared Huge Investment in Spanish Paper Mills

The tribunal, by majority vote, dismissed Venezuela’s objections to its jurisdiction and ruled that it has breached various articles of the Agreement on encouragement and reciprocal protection of investments between the Kingdom of the Netherlands and the Republic of Venezuela. The tribunal concluded that Venezuela’s occupation of Smurfit’s Venezuelan subsidiaries constitutes an expropriation.

The company now plans to pursue the full value of the Award from Venezuela.

Commenting on the development, Tony Smurfit, CEO, Smurfit Westrock said that the company is pleased with the award of the ICSID tribunal and that it further validates the company’s claims that its Venezuelan business was unlawfully expropriated in 2018. However, the award cannot compensate for the full loss in relation to its operations in Venezuela, he added.