World Bank Confirms Venezuela's Exit From Investment Dispute Body

The World Bank confirmed Thursday it had received official notice announcing the exit of Venezuela from the organization's international arbitration body and said the move would become final in six months.

Venezuela will no longer be part of the International Center for Settlement of Investment Disputes, or ICSID, as of July 25, according to a short statement posted on the forum's website.

In response to Venezuela's notification, which was forwarded Tuesday, "the World Bank has notified all ICSID signatory States of...Venezuela's denunciation of the ICSID Convention," the statement said.

Earlier this month, President Hugo Chavez renewed his long-standing complaints against the ICSID and said he would not accept the tribunal's rulings.

Almost two dozen ICSID cases have been filed against Venezuela by foreign companies seeking billions of dollars in compensation for seized assets, including complaints filed by U.S. oil majors ConocoPhillips (COP) and Exxon Mobil Corp. (XOM). Other claimants include Canadian miner Crystallex International Corp. (CRYXF) and Ohio-based bottle maker Owens-Illinois Inc. (OI).

Venezuelan officials say such disputes belong in the country's judicial system and not in front of an international court.

In spite of the withdrawal, Venezuela will be held to pending decisions or risk forfeiting its own assets overseas in the 140 countries that remain under the ICSID. The South American nation will also be tied to arbitration proceedings for up to 15 years by bilateral investment agreements with 24 countries.

During the six-month waiting period, Venezuela could face a rush of last-minute claims, analysts say, embroiling the Chavez government in fresh litigation in the months before presidential elections in October.

-By Ezequiel Minaya, Dow Jones Newswires; 58-414-120-5738; ezequiel.minaya@dowjones.com

OI Glass (NYSE:OI)
Historical Stock Chart
From Jun 2024 to Jul 2024