Kuwait Ordered to Pay $2.16 Billion to Dow Chemical

Yep... that's a crapload of money.

I didn't see any bloggers write about it, and since we've all got to face the blues eventually, here's the lowdown:

[SOURCE] - Kuwait Times:

the Kuwaiti government is scrambling to deal with the repercussions of a court order requiring the country to pay $2.16 billion compensation to Dow Chemical for a unilateral decision in 2008 to opt out of a deal signed between the two sides.

...Meanwhile, the news drew immediate reaction from lawmakers, who are demanding prompt procedures to contain the issue and to hold accountable those responsible for approving the penalty clause in the contract based on which the arbitration was made. The KPC has already denied rumors that the Oil Minister Hussein resigned after the news about the court ruling broke. The subject is expected to become the center of discussions between the cabinet and parliament next week. “Losing more than $2 billion in this case requires transparent and detailed research into the massive losses in Kuwait funds”, MP Obaid Al-Wasmi posted via his Twitter account on Friday

[SOURCE] - AFP:

An international arbitration has granted US Dow Chemical $2.16 billion in compensation from Kuwait for pulling out of a multi-billion-dollar joint venture in 2008, the two sides said on Thursday.

The ruling was issued by the International Court of Arbitration of the International Chamber of Commerce (ICC) after Dow and Kuwait's state-owned Petrochemicals Industries Co (PIC) agreed to refer the dispute to it.

"The ICC award holds that PIC was liable and awards damages to Dow of $2.16 billion, not including interest and costs," Dow said on its website.

PIC chairwoman Maha Mulla Hussein told the official KUNA news agency the company has been notified of the ruling, recalling that Dow had demanded much more than $2.5 billion.

She also said the company is "discussing with its lawyers all available legal procedures," without elaborating.

"This outcome brings resolution and closure to the issue," said Dow chairman and CEO Andrew Liveris.

"We remain focused on continuing to move forward with our transformation and profitable business partnerships both in Kuwait and around the world," he said.

In December 2008, the Kuwaiti government scrapped a $17.4-billion deal between PIC and Dow to create a petrochemicals joint venture due to pressure from opposition MPs citing the global financial crisis.

Under the deal, PIC was to pay $7.5 billion to form a petrochemicals firm known as K-Dow.