Eurohold Bulgaria AD and Euroins Insurance Group AD (EIG) said they have officially filed a request for arbitration against the government of Romania at the International Centre for Settlement of Investment Disputes (ICSID) in Washington, DC. The claim is more than EUR 500 million.

The action comes after the Romanian financial authority ASF withdrew the license of local insurer Euroins Romania in March 2023, which Eurohold said was an “arbitrary and discriminatory” decision. Later, in June, the Bucharest Court officially opened the bankruptcy procedure of Euroins Romania.

Eurohold and EIG said they have started the arbitration proceedings “due to the failure of the Romanian state to observe its obligations under the bilateral investment treaty between Bulgaria and Romania, including its obligation to provide fair and equitable treatment to the companies.”

“Eurohold and EIG seek justice and redress for the multiple unlawful acts of the Romanian authorities, which have damaged EIG’s business in Romania, and completely destroyed it in the case of Euroins Romania,” reads the press release.

The two companies also said that they sent a Notice of Dispute to the Romanian government in October 2023, requesting an amicable settlement of the dispute related to the case of Euroins Romania without prejudice to the group’s right to bring arbitration proceedings. According to the same source, the Romanian government has not used this option. 

Todor Danailov, CEO of EIG, said: “As we have already informed all stakeholders, we would protect our investments by all legal and lawful means. The Romanian state decided not to address the issues we raised. […] So, we are moving further with the arbitration proceeding as the next logical step.” 

Eurohold and EIG are advised in the arbitration proceedings by the multinational law firm Pinsent Masons as well as by Djingov, Gouginski, Kyutchukov & Velichkov (DGKV).

irina.marica@romania-insider.com

(Photo source: the company)