Poland's PKN Orlen loses London High Court bid for $250m from Yukos

19 July 2013 15:32  [Source: ICIS news]

LONDON (ICIS)--A High Court in London has dismissed an application from Polish oil and petrochemicals group PKN Orlen to set aside a judgement that awarded $250m (€190m) with interest and costs to Yukos International in relation to the sale of Lithuanian refiner Orlen Lietuva (formerly Mazeikiu Nafta), Orlen said on Friday.

The dismissal, without a hearing, concerned $250m which, in acquiring the refiner from Yukos International and the Lithuanian government for $2.5bn in 2006, Orlen was permitted to deposit in an escrow account, Orlen said.

The sum could then be withheld from Yukos if Orlen could prove after making the acquisition that the condition of the acquired asset had been misrepresented by the buyer, it added.

On 2 May, the Court of Arbitration in Paris dismissed Orlen's claim for the sum and awarded it to Yukos. The decision from the High Court of Justice, Queen’s Bench Division, Commercial Court in London, upholds that judgement.

Orlen said its management board was now analysing the confirmed award to Yukos and was considering possible further legal steps.

Yukos International, headquartered in the Netherlands, took over the European assets of the defunct Yukos, once Russia's largest energy company.

After acquiring Orlen Lietuva, which boasts the only refinery in the Baltic countries, Orlen announced ambitions to turn its main site into an oil and petrochemical complex, but these plans have been mothballed indefinitely.

 ($1 = €0.76)

By: Will Conroy
+44 20 8652 3214

AddThis Social Bookmark Button

For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.

Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.

Printer Friendly