The D.C. Circuit Court of Appeals has ruled against Petrobras, allowing investor EIG Global Energy Partners to pursue over USD 221 million in compensatory damages. EIG had invested in a project through Petrobras, only to later discover rampant corruption involving the Brazilian company.
EIG lost the significant sum after investing in a project to exploit new oil reserves in Brazil, which ultimately collapsed due to corruption within Petrobras. This ruling signifies a victory for EIG, as it moves closer to recovering its losses.
The court determined that Petrobras couldn’t claim immunity under the Foreign Sovereign Immunities Act, citing the company’s direct involvement in the investment deal with EIG. This case sheds light on the implications of corruption in international investments and the legal complexities involved in holding multinational corporations accountable for their actions.