Helping Hungary's MOL Counter State Misbehavior In Croatia

The Republic of Croatia launched an UNCITRAL arbitration in 2014 alleging that Hungarian oil and gas producer MOL had corruptly acquired controlling rights in Croatian national energy company INA in 2003 by paying a €10 million bribe to Croatian Prime Minister Ivo Sanader. Alleging that MOL had caused billions of dollars in damages to the country, Croatia sought to nullify certain agreements through which MOL had acquired control of INA, the "crown jewel" of Croatia's economy.

MOL clearly had to act to defend its global reputation and the US$2 billion it had invested in INA since 2003. Company CEO Zsolt Hernádi, who stood accused of having personally paid the bribe, also faced dire criminal consequences.