An international arbitration has granted Dow Chemical (IW1000/68) $2.16 billion in compensation from Kuwait for pulling out of a multi-billion-dollar joint venture in 2008, the two sides said on May 24.
In December 2008, the Kuwaiti government scrapped a $17.4-billion deal between PIC and Dow to create a petrochemicals joint venture due to pressure from opposition MPs citing the global financial crisis. Under the deal, PIC was to pay $7.5 billion to form a petrochemicals firm known as K-Dow.
The ruling was issued by the International Court of Arbitration of the International Chamber of Commerce (ICC) after Dow and Kuwait's state-owned Petrochemicals Industries Co (PIC) agreed to refer the dispute to it.
"The ICC award holds that PIC was liable and awards damages to Dow of $2.16 billion, not including interest and costs," Dow said on its website.
PIC chairwoman Maha Mulla Hussein told the official KUNA news agency the company has been notified of the ruling, recalling that Dow had demanded much more than $2.5 billion.
She also said the company is "discussing with its lawyers all available legal procedures," without elaborating.
"This outcome brings resolution and closure to the issue," said Dow CEO Andrew Liveris.
"We remain focused on continuing to move forward with our transformation and profitable business partnerships both in Kuwait and around the world," he said.
Copyright Agence France-Presse, 2012
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