Swiss company to sue Venezuela over nationalisation

By DPA,

Geneva : Holcim, a Swiss cement supply company, Monday said it had opened international arbitration proceedings against Venezuela, after the South American government failed to pay compensation for the nationalisation of its branch there last year.


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Along with two other foreign-owned cement companies, Holcim’s assets were seized by Caracas in the summer, the company said in statement.

In violation of an agreement between the company and Venezuela, the Swiss firm was never compensated and the government cut off all contact by October.

The move was part of a wave of nationalisations launched by Venezuelan President Hugo Chavez in 2008.

By opening the proceedings with the International Centre for the Settlement of Investment Disputes in Washington, the company said it wanted to recoup the full worth of the subsidiary from Venezuela.

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