Same old process at ICSID vs venezuela.

The Bolivarian Republic of Venezuela ranks second, behind Argentina, in the number of complaints filed against it by foreign companies before the International Center for Settlement of Investment Disputes (Icsid).

The arbitration body of the World Bank reported that there are 24 cases filed against the Venezuelan State for alleged breach of contracts signed with private companies. The complaints filed against the countries and the status of the cases are published in Icsid's website. Among the most important disputes in the list of cases are the complaints filed by Gold Reserve, Tenaris S.A., Crystallex, Mobil Corporation, ConocoPhillips, Holcim Limited, Autopista Concesionada de Venezuela, Vanessa Ventures Ltd.

Milagros Betancourt, executive director of the Business Conciliation and Arbitration Center (Cedca), an independent body affiliated to the Venezuelan-American Chamber of Commerce and Industry (VenAmCham), said that for a claim "for breach of contract" to be awarded by the Icsid "there must be an arbitration commitment, which is usually contained in an Agreement on the Promotion and Protection of Investments."

She said that "in those agreements, the investor is expected to take the case before Icsid, when it considers that there has been a breach of contract or the terms and conditions of the contracts have not been fulfilled."

Venezuela has signed Agreements on the Promotion and Protection of Investments with many countries. The expert said that in the most recent agreements signed by Venezuela with Cuba, Russia and Iran there are other arbitration courts rather than Icsid, such as the International Chamber of Commerce in Paris (ICC), the London Court of International Arbitration and the Arbitration Institute of the Stockholm Chamber of Commerce.

This type of complaints "always begins with a negotiation process. In the Icsid there is a conciliation stage," Betancourt said. Venezuela "seems inclined to conciliation" in some cases filed before the court of arbitration.