Nitramonia ownership explodes in international dispute

Newsroom 14/09/2007 | 16:53

The company formally notified the Romanian government that it would file an arbitration suit with the International Centre for the Settlement of Investment Disputes in Washington, the primary international forum for resolving disputes involving foreign investments.
The arbitration will begin “in a matter of weeks,” according to King & Spalding, the international law firm representing S&T.
“Our client hopes that the Romanian government will wish to settle this matter amicably,” said Reggie Smith, the lawyer handling the case on behalf of S&T. “However, we will launch international arbitration proceedings against Romania in a matter of weeks if no settlement is reached.”
The government is currently attempting to sell the Nitramonia companies to new investors. It was recently announced that Donau Chem, controlled by the InterAgro group held by Ioan Niculae, has agreed to purchase the main assets of Nitramonia's fertilizer business, SC Nitrofertilizer SA for some EUR10 million. “The Romanian government is trying to sell what it illegally seized from S&T,” said Smith. “Any potential buyer of the Nitramonia companies' shares or assets should appreciate that the government's ownership of those shares or assets was acquired through serious violations of international and domestic law,” added the lawyer.
Nitramonia is located on a 300-hectare complex in Fagaras. S&T acquired it from AVAS's predecessor, APAPS, in October, 2003. The following year, the government approved the creation of seven new Nitramonia companies out of the communist-era Nitramonia conglomerate.
The two largest are SC Nitrofertilizer and SC Nitroexplosives.

Vlad Praoveanu

BR Magazine | Latest Issue

Download PDF or read online: July 2023 Issue | Business Review Magazine

The July 2023 issue of Business Review Magazine is now available in digital format, featuring the main cover story titled “At a Crossroads: Budget Deficit Endangering Romania’s Economic
Newsroom | 31/07/2023 | 14:14

    You will receive a download link for the latest issue of Business Review Magazine in PDF format, based on the completion of the form below.

    I agree with the Privacy policy of

    I agree with the storage and handling of my data by

    Advertisement Advertisement
    Close ×

    We use cookies for keeping our website reliable and secure, personalising content and ads, providing social media features and to analyse how our website is used.

    Accept & continue