The international tribunal admitted the request formulated in the summer of 2005 by the Micula brothers, who hold dual Romanian and Swedish citizenship, and by three companies of the European Drinks group, in which they claim that the Romanian government violated the provisions of the Romanian-Swedish bilateral accord regarding reciprocal protection of investments, by reneging on tax facilities awarded in the underprivileged Stei-Nucet area in Bihor County, whose value exceeded €200 million.
“This victory has a double meaning: it is the first victory of a private investor against the Romanian state in litigation involving the protection of foreign investments in Romania. It is also the first time the arbitral tribunal firmly states in connection with Romania that the abrogation, cancellation of facilities awarded to foreign investors is a situation which is prejudicial, and a suit to redress such prejudices is admissible before the ICSID. Not lastly, the tribunal also stipulates that the reinstitution of facilities is a possible resolution,” according to a declaration for Business Standard by Gheorghe Musat, Senior Partner of the Musat & Asociatii law firm, which represented the interests of the Micula brothers and the European Drinks group. The Micula brothers’ legal team also included the Austrian Schoenherr law firm, a French lawyer, and a renowned Professor of International Law. The Romanian state was represented by lawyers of the Freshfields and Nestor Nestor Diculescu Kingston Petersen law firms.
