Rusoro gets green light to seize State oil company’s assets
Canadian junior Rusoro Mining has achieved a significant appellate victory in the long-standing dispute to enforce an arbitration award it obtained against Venezuela, arising out of the expropriation of its gold assets more than a decade ago.
The US Court of Appeals for the Third Circuit, based in Philadelphia, affirmed that Venezuela’s State-owned oil company is the country’s alter ego and that its property may be seized in satisfaction of the judgment debt.
A three-judge panel rejected Venezuela's argument that political turmoil in the country warranted a different outcome than the Third Circuit had reached back in 2019, when it concluded that the Republic controls its State-owned oil company, Petróleos de Venezuela (PDVSA).
The ruling re-affirms Delaware Federal Judge Leonard Stark's ruling on the issue for the second time in five years.
The panel, comprised of Judges Stephanos Bibas, Paul Matey and Arianna Freeman stated: "Even accounting for those differences [regarding political turmoil], the district court correctly concluded that PDVSA remains the alter ego of Venezuela."
"…Reviewing PDVSA's other arguments would stretch the limited grant of our appellate jurisdiction well beyond the words written by Congress, we decline the invitation and will affirm the district court's judgment."
"Rusoro welcomes the Court of Appeals' ruling and remains hopeful that, rather than continue to waste the Republic's scarce resources fighting with its creditors in court, the Republic will voluntarily pay its obligation to the Company and allow the parties to bring this longstanding dispute to its overdue conclusion,” commented Rusoro CEO Andre Agapov.
The arbitration award totals more than $1.4-billion, with interest.
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