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On February 24, 2025, the Lisbon Appeals Court upheld an arbitration ruling in favor of Canadian mining company Gold Reserve, allowing it to enforce approximately $1.1 billion in Portugal against Venezuela. This decision strengthens the company’s efforts to recover compensation ordered in 2014 by the International Centre for Settlement of Investment Disputes (ICSID) following the expropriation of the Las Brisas Project. According to Reuters.
As part of its collection strategy, Gold Reserve secured freezing orders on bank accounts in Portugal totaling over $1.4 billion, but warned that the recovery of these funds remains uncertain due to various legal factors. The company emphasized that additional court orders are still needed to attempt to collect the frozen money.
The Mysterious Debt of Venezuela to Gold Reserve and the Payment of Bribes
In addition to the litigation in Portugal, Gold Reserve is involved in legal proceedings in the United States, including the auction of shares from the parent company of Citgo Petroleum, the refining subsidiary of PDVSA in that country. This auction, overseen by a U.S. court, aims to pay creditors affected by debt defaults and expropriations carried out by the Venezuelan regime.
Gold Reserve indicated that any recovery in Portugal or the United States would be mutually offset, meaning funds obtained in one country could reduce the amount collected in the other. The company has been pursuing Venezuela for over a decade to execute compensation resulting from the confiscation of its investment in gold mining in the country.
The upholding of the ruling in Portugal marks a significant advance in the lengthy legal battle between Gold Reserve and the regime of Nicolás Maduro. However, the effective collection will depend on the development of judicial processes and the company’s ability to navigate Venezuela’s legal maneuvers to avoid payment.