Venezuela finally leaves Icsid on Wednesday, July 25
Departure from Icsid does not mean the end of arbitration in dispute settlement
Venezuela is to complete on Wednesday, July 25, its pullout of the International Center for Settlement of Investment Dispute (Icsid), thus envisaging an uncertain scenario for investors as to arbitration. In the meantime, the State will be bound to the World Bank agency regarding several lawsuits against it, Efe reported.
Venezuela formalized last January 25 the "irrevocable" denunciation of the agreement under which the Icsid was established, by alleging "the Venezuelan people's right to decide on the strategic orientation of the economic and social life of the nation."
The Venezuelan government advocated the withdrawal by claiming that the Icisid had "ruled 232 times in favor of transnational interests in the 234 cases heard throughout its history."
Venezuela closes the chapter of Icsid facing charges, such as the complaints filed by Russian-Canadian mining company Rosoro and oil corporation ConocoPhillips, pending settlement.
The farewell to Icsid does not mean the end of arbitration in dispute settlement, some experts remembered.
José Vicente Rangel clearly said: "We are not conducting negotiations threatened with a gun in the head." He warned behind closed doors in the midst of the social upheaval occurred during the oil strike in 2002 and 2003. Dissenting Timoteo Zambrano answered back that no other option was available: "The thing is that otherwise, you do not negotiate."