Venezuela withdraws from World Bank arbitration court

January 25, 2012 19:38


Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user experience almost completely free of ads
  • Access to our Premium Section
  • Content from the award-winning Jerusalem Report and our monthly magazine to learn Hebrew - Ivrit
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief


Venezuela has withdrawn from a World Bank arbitration panel, the foreign ministry said on Wednesday, a move unlikely to help the South American nation avoid what could be billions of dollars in payouts for close to 20 arbitration proceedings against it.

The government of President Hugo Chavez said this month the country would pull out of the World Bank's International Center for Settlement of Investment Disputes, or ICSID, after a separate tribunal ordered Venezuela to compensate U.S. oil giant Exxon Mobil following a 2007 nationalization.

"The Constitution of Venezuela of 1999 invalidates, in spirit and letter, the conditions of this convention," the foreign ministry said in a statement, referring to the convention that created the ICSID.

The ministry said Venezuela signed this agreement in 1993 under a "weak transitional government... that was pressured by transnational sectors that participated in destroying Venezuela's sovereignty."

Analysts say it could take months or years for Venezuela to exit the tribunal, and that it will still have to pay any compensation ordered by the ICSID in pending cases mostly spurred by years of nationalizations led by Chavez.

Join Jerusalem Post Premium Plus now for just $5 and upgrade your experience with an ads-free website and exclusive content. Click here>>

Related Content

Breaking news
October 19, 2018
Norway to free Russian spying suspect but continue probe