October 9, 2009 - Press release

Hungary retains Mannheimer Swartling as counsel in energy dispute

Mannheimer Swartling has been retained as counsel for the Republic of Hungary in an energy dispute with the French energy company E.D.F. International S.A. (EDF).

The dispute is brought under the Energy Charter Treaty, a multilateral treaty ratified by 47 States and the European Union aimed at promoting long-term cooperation in the energy sector. EDF claims that Hungary has breached its international obligations as set out in the Energy Charter Treaty by terminating three energy purchase agreements entered into between a Hungarian state-owned energy company and EDF’s subsidiary in Hungary. Prior to the termination, the EU Commission had decided that these contracts amounted to illegal state aid. The dispute will be adjudicated by an arbitral tribunal constituted in accordance with the UNCITRAL Arbitration Rules.

Mannheimer Swartling was selected to represent the Republic of Hungary after winning a public tender together with the Hungarian law firm BNT in competition with a number of international law firms.

Mannheimer Swartling’s team includes Kaj Hobér, Jakob Ragnwaldh, Mattias Göransson and Tommy Pettersson.

"This instruction from the Republic of Hungary is another example of Mannheimer Swartling’s strong position in the area of international disputes. Over the last few years, we have seen a steady increase in disputes under international treaties and everything suggests that this trend will continue,” says Jakob Ragnwaldh, partner at Mannheimer Swartling.