In 2010, Venezuela nationalized the Company Café Fame de América as part of Hugo Chavez’s policy to take back control of the country’s food supplies. On this occasion, the Venezuelan government had expropriated one of the investments of the firm, the Longreef Company based in the Netherlands Antilles.
Longreef replied by initiating a request for arbitration, claiming that the payment of USD 19 million compensation – less than 10% of the value of the expropriated assets – was insufficient and contrary to the BIT signed between The Netherlands and Venezuela. Although the investor estimated damages amounting to a sum of USD 500 million, the Arbitral Tribunal reduced this
amount by taking onto account the devaluation of Venezuelan currency and ordered Venezuela to pay USD 43 million to Longreef.