EVN Commences Investment Treaty Arbitration Against Bulgaria

Austria's EVN AG said it has initiated international arbitration proceedings against Bulgaria at the International Centre for Settlement of Investment Disputes in order to safeguard its business interests in the Balkan country.

Taking into consideration that the new Bulgarian government has just taken office, EVN AG would like to emphasize that it remains interested in settling the matter amicably in the interests of both parties, the Austrian company said in a statement on Friday.

EVN AG notified Bulgaria in March 2013 of its claims under international investment treaties in connection with the country's breaches of public international law. This dispute arises out of actions by Bulgarian regulatory authorities and government agencies in relation to the pricing of electricity and compensation for public obligations in respect to renewable energy.

These measures have caused substantial damage to EVN AG and its affiliates. In its notice, and on several occasions since, EVN AG has invited the Bulgarian Government to enter into negotiations in order to achieve an amicable settlement. Yet, these efforts have so far not led to a resolution of this dispute, the statement said.