The Hungarian transporter FGSZ recently reached a favorable decision in an arbitration case against the Government of the Federation of Bosnia and Herzegovina, Energoinvest, and BH-Gas. The arbitration council in Zurich ruled in favor of FGSZ, ordering Energoinvest and BH-Gas to pay over 11 million US dollars to the Hungarian company.
The dispute arose from a contractual penalty imposed on FGSZ by BH-Gas and Energoinvest following the introduction of the new gas supply route via Turkish Stream. The arbitration panel rejected all requests made by FGSZ against the FBiH Government, freeing the government from any financial obligations.
The Federal Ministry of Energy, Mining, and Industry expressed support for further legal actions to protect the interests of Energoinvest, BH-Gas, and the Federation of Bosnia and Herzegovina. The ministry highlighted the damage caused by the decisions leading up to the arbitration, emphasizing the need for clarity and resolution.
Overall, the outcome of the arbitration case underscores the complexities of international energy agreements and the importance of strategic decision-making in the gas industry.