UKRAINE, VANCO TO EXTEND POSTPONEMENT OF STOCKHOLM ARBITRATION PROCESS
Ukrinform, Kyiv, Ukraine, Mon, Dec 13, 2010
KYIV -The Cabinet of Ministers of Ukraine and Vanco Prykerchenska Ltd. (the British Virgin Islands) have agreed to extend the postponement of the arbitration process at the Arbitration Institute of the Stockholm Chamber of Commerce until April 2011 in order to sign an amicable agreement, the company said in a statement.
“Vanco Prykerchenska Ltd. and the state of Ukraine have agreed to extend the postponement of the Stockholm arbitration process for further three months in order to sign an amicable agreement," reads the statement.
“We are satisfied with the negotiation process that is in progress. The talks are conducted in a constructive and businesslike atmosphere. However, we decided that more time was needed to complete all the formalities and clarify all details related to the future amicable agreement," the company quoted President of Vanco Prykerchenska Ltd. Jim Bown as saying. He expressed hope that the sides would sign an amicable agreement very soon.
The Arbitration Institute of the Stockholm Chamber of Commerce (Sweden) earlier extended the postponement of the arbitration process between Ukraine and Vanco Prykerchenska Ltd. until 2011.
Ukraine hopes to avoid the payment of compensation in an amicable agreement with Vanco Prykerchenska Ltd.
On October 19, 2007, the Cabinet of Ministers and Vanco International (Bermuda Islands) signed a production sharing agreement on the development of the Prykerchensky section of the Black Sea shelf.
Vanco International transferred all of the rights and obligations under the production sharing agreement to Vanco Prykerchenska Ltd. This was the main reason for the dissolution by the Cabinet of Ministers of the agreement and the start of an international trial, in which Vanco Prykerchenska acted as the plaintiff.
Vanco International is a 100% subsidiary of Vanco Energy Company (the United States). Vanco Energy owns only a 25% stake in Vanco Prykerchenska, while other owners on an equal footing are DTEK Corporation (Donetsk), Integrum Technologies Ltd. (Austria), as well as Shadowlight Investments Ltd. of Russian businessman Yevgeny Novitsky.