Federal Court Denies Venezuela Request to Delay $234 Million Award Payment to Tenaris
Venezuela was denied a stay of a more than $234 million arbitration award payment to Luxembourg-based steel pipe and tube supplier Tenaris S.A. since the stay would be redundant due to current restrictions on the payment, a judge for the…
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U.S. District Court for the District of Columbia ruled in a March 29 decision. Due to current Office of Foreign Assets Control sanctions on Venezuela, enforcement of the award cannot be completed until Tenaris receives a license from OFAC or until U.S. sanctions on Venezuela are lifted entirely. Judge Carl Nichols found that with the OFAC restrictions, Venezuela is not required to pay until Tenaris receives the agency's permission, so a stay “does nothing to alter the status quo.” The arbitration payment was awarded to Tenaris by the International Centre for Settlement of Investment Disputes for Venezuela's expropriation of Tenaris assets without compensation.