International Tribunal Recognizes Guaidó and Orders Temporary Suspension of Proceedings

An arbitration brought by Petróleos de Venezuela (PDVSA) against Petróleos Paraguayos (Petropar), filed in July 2016 before the Paris-based International Court of Arbitration of the International Chamber of Commerce (ICC), has been temporarily suspended.

PDVSA raises claims for the payment of over $300 million in debt for fuel supply in 2008 and 2009, incurred within the framework of the Energy Cooperation Agreement of Caracas Treaty, signed by Paraguay and Venezuela in 2004. Arguing that PDVSA is a state entity that is under the control of Maduro’s government, which is not recognized by the Republic of Paraguay, Petropar requested the Arbitral Tribunal temporarily postpone the merits hearing. The Arbitral Tribunal confirmed Petropar’s request, issuing a Procedural Order canceling the merits hearing scheduled for June 10-14, 2019, in Paris, until further notice.

Petropar maintains its commitment to pay the debt with interest, in accordance with the conditions established in the Energy Cooperation Agreement of Caracas Treaty. The Treaty establishes that the debt can be financed over a period of 15 years. Accordingly, the debt has not yet expired.  

Reports in Spanish from Reuters and CIAR Global are available in these links.

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