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Termination of arbitration with U.S. Steel

23. 06. 2014

The Slovak Republic, represented in the arbitration by the Ministry of Finance of the Slovak Republic, has welcomed and accepted the decision of U.S. Steel to cease its pending dispute in arbitration with the Slovak Republic. Officials of the company said in its statement:

“U. S. Steel Global Holdings I B.V., a limited liability company existing under the law of the Netherlands and immediate parent company of U. S. Steel Košice, s.r.o., has agreed to cease its pending dispute in arbitration with the Slovak Republic.  This decision is based on the significant progress made in the last year at both the EU and member state levels regarding the strategic importance of the steel industry to European and Slovak economies and the impact high energy prices have on the competitiveness of the European steel industry. This has been significantly aided by the European Commission’s Action Plan for a competitive and sustainable steel industry in Europe, more commonly known as the Steel Action Plan, which was adopted by the European Commission in June 2013, and subsequently adopted in a 4 February 2014 resolution by an overwhelming majority in the European Parliament. Recently, the Slovak Republic became the first member state to adopt important measures set forth in the plan.  The Steel Action Plan sets a clear path for assessing and addressing the high cost of energy in the EU and the ability of the European steel industry to compete on a level playing field with other steel-making regions of the world.  In addition, it seeks to address competitive differences in the industry which exist between the various member states.”

The Slovak Republic has been for a long time establishing conditions to support the steel industry, which has been proved by the “Action Plan for competitive and sustainable steel industry in Slovakia” approved by resolution of the GOS No. 187 of April 23, 2014.

On June 16, 2014 the tribunal in the arbitration U.S. Steel vs. Slovak Republic took note of the withdrawal of U.S. Steel’s claim, without prejudice to the right to refile a claim, on the terms agreed by the disputing parties and declared the arbitration terminated. As mutually agreed by the parties, each party shall bear its own costs and expenses for its participation in the arbitration.
In the arbitration the Dutch company U. S. Steel Global Holdings I B.V. (the sole shareholder of Slovak steel producer U. S. Steel Košice, s.r.o.) sought damages for alleged breaches of the Treaty on encouragement and reciprocal protection of investments between the Czech and Slovak Federal Republic and the Kingdom of the Netherlands due to imposition of the system tariffs on auto-produced electricity.

PROCEDURAL ORDER ON TERMINATION OF ARBITRATION.

Press Department
Ministry of Finance of the Slovak Republic