Home / Negotiations / 2013-2014

2013-2014

2013-2014
  • April 2013: MOL sends an official letter to the Croatian Government requesting formal negotiations, including a remedy for the breached gas contracts by finding an amicable solution for both sides; however no official response is received for over 3 months.
  • July 24, 2013: After a lack of response from Croatia, MOL’s legal representative sends an official letter to the Government notifying of its intention to initiate a lawsuit over the GMA breach by the Government in case an amicable solution cannot be reached by the end of September, 2013.
  • August 1, 2013: The Croatian Government officially delegates the negotiating team and official government negotiating framework with the intention to re-negotiate all contracts in place regarding INA.
  • September 18, 2013: The first round of negotiations takes place between the Croatian Government and MOL; negotiations cover one issue at a time and are limited to one meeting per month, at the Government’s request.
  • October 17, 2013: MOL’s Board of Directors approves a position paper (“Position Paper on negotiations about the future of INA”) detailing its negotiating framework around INA containing all main elements for negotiations to be successful. The document spells out MOL’s position in relation to the negotiations between the two parties as the two largest shareholders of INA.
  • October 18, 2013: The position paper is sent to the Government of Croatia.
  • October 25, 2013: The Government postpones further negotiations with MOL
  • November 8, 2013: Second round of negotiations; the Croatian Government team insists on discussing INA’s corporate governance instead of MOL’s suggested strategic dialogue covering the future of INA’s businesses. The parties agree to continue negotiations.
  • End of November 2013: MOL initiated an arbitration procedure against the Croatian Government under the Energy Charter Treaty.
  • January 16, 2014: Third round of negotiations. The parties agree to continue negotiations in good faith around the key business issues including expert level discussions and negotiations on INA’s corporate governance model. While discussions continue on business elements, Economy Minister Vrdoljak states that these cannot be settled without an agreement on INA’s corporate governance.
  • January 17, 2014: The Croatian Government publicly announces that it has initiated arbitration under UNCITRAL (United Nations Commission on International Trade Law) rules in Geneva to nullify the 2009 Amendment to the Shareholders Agreement and the Gas Master Agreement (and its First Amendment).
  • May 7, 2014: Fourth round of negotiations. No discussion about the future of INA’s businesses and strategy. Economy Minister Vrdoljak accused MOL of destroying the value of INA since 2009, but refused to show the study which allegedly proved this statement.
  • July 25, 2014: Fifth round of negotiations. Once again no discussion about the future of INA’s businesses and strategy. In a statement following the conclusion of the talks MOL Group expressed its concern that no progress had been made.
  • August 11, 2014: First hearing in UNCITRAL arbitration related to the interim measures filed by the Government of Croatia.
  • September 11, 2014: First hearing in ICSID arbitration related to the Croatia’s application held.