RIA Novosti reported that gold mining company Rusoro Mining owned by Russian businessman Mr Vladimir Agapov has filed a lawsuit with the World Bank arbitration tribunal against Venezuela to get compensation for the nationalization of its assets.

When Venezuelan President Mr Hugo Chavez announced plans to nationalize the county’s gold mining assets in mid-August 2011, Rusoro owned two mines and an estimated 12.8 million troy ounces of gold reserves in Venezuela, making it the largest single gold mining company in the country.

Rusoro said in a statement that “The arbitration has been commenced following the passing by the Venezuelan Government of a series of measures that dismantled the legal regime for the marketing of gold in Venezuela and which culminated in the outright nationalization and control of Rusoro investments in Venezuela without compensation.”

Canada headquartered Rusoro is seeking arbitration under a treaty between Canada and Venezuela promoting and protecting investment.

The statement added that “The claim is for breach of the Treaty's protections against expropriation, unfair and inequitable treatment and discrimination, and for breach of the guarantees of full protection and security and free transfer of investments.”

Rusoro mined 150,000 ounces of gold in Venezuela in 2010 and 80,000 ounces in 2011. The law on nationalization came into force in September 2011.

Mr Andrey Agapov Rusoro CEO said "The Venezuelan government actions have resulted in significant loss to the company and its shareholders. For several months we have attempted to find an amicable resolution to the dispute but in the end, in light of the government's apparent unwillingness to look for an amicable resolution, it became the company's sole recourse to commence international arbitration.”

Source - RIA Novosti

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