Court rejects Poland's appeal in PZU privatization row

Eureko demanded that the privatization of the largest domestic insurer PZU be completed and a controlling stake in the insurer be sold. Over two years ago the tribunal ruled that Poland was indeed delaying the privatization of PZU, while Poland was trying to prove that the issue should be analyzed by a Polish court. "There is no doubt as to whether the tribunal's ruling is legal. We were expecting such ruling. Motions presented by the Polish party were, in reality, tactical activities played to gain some time," said Michał Nastula, president of Eureko Polska. He added that the second phase of international arbitration is already under way, but its schedule had not yet been agreed. This process will determine the value of compensation to be paid by Poland, which was estimated by Eureko at over zł.8 billion two years ago with the amount increasing by zł.1 billion annually. It is still, however, possible that the parties will reach a compromise and to this end Treasury Minister Aleksander Grad will meet with representatives of the company.