ICSID upholds an arbitration ruling rendered in favor of Sodexo related to its Benefits & Rewards Services in Hungary
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Paris, May 24, 2021
On May 7, 2021, the International Center for Settlement of Investment Disputes (ICSID) confirmed the arbitral award that had been rendered, in favor of Sodexo, on January 28, 2019, in the context of its dispute with the Hungarian State initiated in 2014, related to changes in the regulatory and fiscal environment in Hungary concerning issuance of food and meal vouchers.
The arbitral ruling ordering the Hungarian State to pay Sodexo 73 million euros of damages (plus accrued interest since December 31, 2011), had been challenged by Hungary on May 27, 2019. The ICSID committee’s decision to reject Hungary’s challenge means that the January 2019 favorable arbitral award,
The German government has agreed to a multibillion-euro compensation deal with major utility firms on Friday over its ongoing nuclear energy phaseout.
The majority of the €2.4 billion ($2.9 billion) compensation package will be awarded to RWE and Swedish firm Vattenfall. This is largely to make up for lost revenue from the electricity they could otherwise have sold. Vattenfall will receive €1.425 billion and RWE €880 million. Smaller payouts of €80 million and €42.5 million were made to EnBW and EON/PreussenElektra to make up for investments made at plants when their licenses were renewed in 2010. Part of RWE’s compensation also covers some investments made.