Croatia has achieved a full legal victory in an arbitration dispute with the Hungarian energy company MOL, following a tribunal ruling that dismissed all of the company’s claims and ordered it to pay arbitration-related costs.
The tribunal rejected MOL’s request for compensation in its entirety and instructed the company to reimburse Croatia for tribunal and administrative expenses totaling €775,000, including applicable interest. The ruling represents a complete legal win for the Croatian side in the commercial arbitration process.
The dispute originated from earlier proceedings initiated by MOL under an ICSID investment arbitration framework, where a decision issued in July 2022 directed the company to pursue its compensation claims through commercial arbitration instead of the investment treaty mechanism.
Following that ruling, MOL filed commercial arbitration proceedings against Croatia in 2023, alleging breaches of obligations under the Gas Business Agreement and its subsequent amendment. In its claim, MOL sought damages of €36.15 million, while also presenting an alternative claim seeking €91.12 million on behalf of INA.
After reviewing the case, the arbitration panel ruled entirely in favor of Croatia, dismissing all claims submitted by MOL. The decision effectively closes the dispute and confirms Croatia’s position in the arbitration proceedings.
