In a press release, CEZ announced that it had received a notice from a Luxembourg court bailiff regarding two Luxembourg entities: The first is CGN (Czech Gas Networks S.à r.l.), in which CEZ holds a 55.21% stake. The second is CGNI (Czech Gas Networks Investments S.à r.l.), which is wholly controlled by CGN. CGNI wholly owns the Czech company Czech Grid Holding, a.s., which in turn owns GasNet, s. r. o., and GasNet Služby, s. r. o.

The situation relates to the Diag Human case and its claims against the Czech Republic, which amount to CZK17bn. The decisions of the Luxembourg officer only restrict the rights to dispose of the assets of CGN and CGNI.

CEZ considers the decisions to be both unlawful and vexatious. It will challenge them in court. CEZ expects the decisions to be overturned within a matter of months.

The decision relates solely to assets in Luxembourg. From a layperson’s perspective, however, it will not affect business in the Czech Republic at all. It should not restrict the companies' operations or cash flows. Diag Human has no legal claims against CEZ. Any such claims should be directed exclusively against the Czech Republic, not CEZ.

Autor: Bohumil Trampota