Glencore to pay USD 40m to OMV Petrom after UK court ruling

Anglo-Swiss company Glencore, dealing with commodities trader and mining, is to pay OMV Petrom some USD 40 million, after a UK court ruling, for fraudulently shipping oil of a lower-than-purported quality to Romania in the 1990s, economica.net informs, quoting Bloomberg.

Marc Rich & Co., later to become Glencore International AG, sold more than 30 shipments to Romanian state firms from 1993 to 1996 made up of cheaper crude blends than agreed, and falsified documents, Julian Flaux, the judge in the London court, said in his ruling on Friday. It profited by about USD 40.1 million from the “deceit,” he said.

Glencore will appeal the ruling.

“The events took place over 20 years ago and the relevant commercial staff have long since left the company,” the Baar, Switzerland-based commodities trader said in a statement.

Glencore supplied about a quarter of the crude imported by Petrol Export Import SA, or Petex, on behalf of two state firms that later became Petrom, Flaux said.

The dispute has been the subject of two arbitration proceedings going back more than a decade. Petrom filed its U.K. lawsuit against Glencore in 2008.

 

 

arbitration proceedingsBaarfraudulently shipping oilglencorelawsuitOMV PetromUK court ruling
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