Gold Reserve wins $1.1 billion arbitration award in Portugal against Venezuela

Gold Reserve said on Monday the Lisbon Court of Appeal confirmed the Canadian miner’s arbitration award against Venezuela, giving it green light to enforce about $1.1 billion in Portugal.

The company said the judgment supports its ongoing efforts to enforce its arbitration award in Portugal, where it said it had obtained attachment orders “against multiple bank accounts” holding more than $1.4 billion.

“Recovery is not certain in the Portugal legal proceedings due to multiple factors,” it added. “Further court orders are required to attempt to collect against any of the attached funds.”

Venezuela’s Information and Communication ministry did not immediately reply to a request for comment.

The Canadian company said its efforts for enforcement of the arbitration ruling in Portugal are in addition to those being undertaken in the US, including its participation in a court-organized auction of shares in the parent of Venezuela-owned refiner Citgo Petroleum to pay 18 creditors for debt defaults and expropriations in the South American country.

Citgo Petroleum is Venezuela’s most valuable overseas asset and has been the target of creditors seeking compensation for late President Hugo Chavez’s nationalization wave and President Nicolas Maduro’s failed debt payments.

Any recovery in the US court proceedings is expected to offset the amount that can be recovered from the legal proceedings in Portugal, Gold Reserve added.

(By Pooja Menon, Marianna Parraga and Vivian Sequera; Editing by Sriraj Kalluvila)