Gold Reserve’s Victory in Lisbon Court of Appeal: A Major Step Forward in Enforcing Arbitral Award against Venezuela
In a significant development for Gold Reserve Ltd. (TSX.V: GRZ) (OTCQX: GDRZF) (“Gold Reserve” or the “Company”), the Lisbon Court of Appeal in Portugal recently granted the Company’s application to confirm the arbitral award dated September 22, 2014, against the Bolivarian Republic of Venezuela (“Venezuela”).
Background of the Dispute
Gold Reserve’s dispute with Venezuela began in 2008 when the Company’s subsidiary, Gold Reserve Mining Corporation, commenced international arbitration against Venezuela under the United Nations Commission on International Trade Law (UNCITRAL) Rules. The Company sought damages for expropriation of its gold mining project, the Brisas Gold Project, located in the Orinoco Mining Arc, Venezuela.
The Arbitral Award
On September 22, 2014, the UNCITRAL Arbitral Tribunal issued an award in favor of Gold Reserve, ordering Venezuela to pay the Company approximately $760 million in damages, interest, and costs.
Confirmation of the Award in Portugal
Following the issuance of the Award, Gold Reserve initiated proceedings in various jurisdictions, including Portugal, to enforce the Award. On February 20, 2025, the Lisbon Court of Appeal issued an Order granting the Company’s application to confirm the Award in Portugal. The Order entered judgment for the Company, paving the way for the enforcement of the Award against Venezuela’s assets located in Portugal.
Impact on Gold Reserve
This confirmation of the Award in Portugal represents a significant milestone for Gold Reserve, as it brings the Company one step closer to recovering the damages awarded to it by the Arbitral Tribunal. The Company can now proceed with the enforcement of the Award against Venezuela’s assets in Portugal.
Impact on the World
Beyond the impact on Gold Reserve, this development could have far-reaching implications for international arbitration and investor-state disputes. The confirmation of the Award in Portugal underscores the importance of the international arbitration system in resolving disputes between states and investors. It also highlights the commitment of European courts to uphold international arbitration awards, even in the face of political tensions between the parties involved.
Conclusion
Gold Reserve’s victory in the Lisbon Court of Appeal marks an important development in the Company’s efforts to enforce its arbitral award against Venezuela. This confirmation of the Award in Portugal brings Gold Reserve one step closer to recovering the damages awarded to it and serves as a reminder of the importance of the international arbitration system in resolving investor-state disputes. The implications of this development extend beyond Gold Reserve, as it highlights the commitment of European courts to uphold international arbitration awards, even in complex political environments.
- Gold Reserve wins confirmation of arbitral award in Lisbon Court of Appeal
- Venezuela ordered to pay approximately $760 million in damages, interest, and costs
- Confirmation of the Award paves the way for enforcement against Venezuela’s assets in Portugal
- Significant milestone for Gold Reserve in recovering damages
- Implications for international arbitration and investor-state disputes
