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The government can lose US$4 million for Aratirí

The government can lose US$4 million for Aratirí

The conflict began after, in 2016, the project valentines, seeking development of one of the world’s largest high-grade iron ore mines for nearly $3 million, the most important foreign investment made in Uruguay, failed. According to Agarwal, the owner of the Zamin Ferrous company in charge of the project, the reason was that the government’s requirements were constantly changing, which led to the total loss of the investment, as reported by the Financial Times.

Although the government rejected such claims, Agarwal filed a lawsuit against the Uruguayan state in 2017, under the investment protection treaty between the United Kingdom and Uruguay, taking refuge in his British residence.

At the time, the CPA considered that the company that controlled the Uruguayan assets was in the hands of a trust of the Cayman Islands on behalf of their children, this did not in itself constitute an investment and they could not make a claim for compensation under the treaty. With these arguments, it ruled in favor of the Uruguayan State.

However, the Paris Court of Appeal reversed the ruling, so Agarwal can return to fight in court to recover your investment that, with the interests, Today it reaches a figure of 3,536 million dollars.

The noose around the neck for Lacalle Pou

The possibility of a new international arbitration not only opens the doors to a millionaire disbursement by the state, but also to the loss of reputation favorable to the country’s market.

Although the government was different in 2017, today Lacalle Pou is facing the consequences of the adverse ruling from a position similar to that held by his predecessors: Uruguay did nothing wrong during the Aratirí process, so it does not owe any compensation to the indian businessman.

It remains to be seen how the story continues, but Agarwal has already confirmed that he will move forward with the lawsuit, because he is getting “closer to obtaining justice.”

Source: Ambito

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