A World Bank arbitration panel has ruled that the Venezuelan government must pay $1.6 billion to ExxonMobil, the international oil and gas company, for the seizure of a major oil project and other losses. CCTV America’s Martin Markovits repors.
The ruling is ExxonMobil’s second successful court ruling against Venezuela since Hugo Chavez, the former president of Venezuela, led a wave of business nationalizations across the country. It also comes at a time when Venezuela is cash-strapped and suffering from record inflation.
Since 1999, Chavez and his successor, Nicolas Maduro, took over 1,190 key industries in an attempt to redistribute the country’s vast wealth back to the poor.
The decision is not expected to slow down Venezuela’s plans for further business nationalizations. Last month, Maduro took over a Clorox manufacturing facility after the company decided to leave citing government restrictions.
The Venezuelan government has not said whether it will appeal the decision by the arbitration panel.