Czech Republic and ArcelorMittal strike deal

11-07-2008

The Czech Republic and the steel producer ArcelorMittal reached an agreement on Thursday which will bring an international arbitration against the country to an end. ArcelorMittal, which is the world’s largest producer of steel, launched arbitration proceedings against the Czech Republic in 2005 over the Czech government’s decision to exclude the company from the privatization of the steel works in Vítkovice, northern Moravia. The London-based steel giant sued the country for 26 billion crowns, or more than 1.7 billion US dollars. According to the agreement, the Czech Republic will sell 11 percent of shares in the steel works to ArcelorMittal; in return, the steel producer will drop all claims against the Czech Republic.