(Ljubljana, 14 April 2026) – On Tuesday, 14 April 2026, Elektrogospodarstvo Slovenije – razvoj in inženiring (EGS-RI), represented in arbitration proceedings and related negotiations by Holding Slovenske elektrarne (HSE), and the companies Rudnik i Termoelektrana Ugljevik (RiTE Ugljevik) and Elektroprivreda Republike Srpske (ERS), concluded a final agreement on the settlement of remaining outstanding debts in the amount of EUR 37.4 million and accrued interest. The agreement thus settles all mutual claims of both negotiating parties and also ends the ICSID arbitration procedure, i.e. the proceedings against Bosnia and Herzegovina before the arbitration tribunal at the International Centre for Settlement of Investment Disputes in Washington. The total estimated value of all the agreements concluded in the Ugljevik case, in which HSE successfully conducted legal proceedings and negotiations for more than fifteen years, amounts to over EUR 230 million.

To recap: EGS-RI participated in the construction of Rudnik i Termoelektrana Ugljevik (RiTE Ugljevik) between 1981 and 1991. The instigation of relevant court proceedings dates back to 2009 and the arbitration procedure against RiTE Ugljevik was initiated in 2014. At that time, HSE filed a request by authorisation of EGS-RI for a Belgrade-based ad hoc arbitration against RiTE Ugljevik. The case involved a dispute initiated by EGS-RI regarding investments in the construction of the mine and the thermal power plant and a total of more than five terawatt hours of undelivered and owed electricity. In 2023, the arbitration tribunal in Belgrade decided on the payment of compensation in the amount of EUR 67 million arising from undelivered electricity from Ugljevik TPP and ordered the defendant to also pay EUR 58.2 million of interest accrued until the end of 2021. In February 2024, HSE again began offtaking electricity from Ugljevik TPP on behalf of EGS-RI, and an agreement was also concluded at that time on the repayment of the principal, determined at EUR 67 million. At the end of 2024, an agreement on the recognition and settlement of debt on the basis of undelivered electricity between 1 January 2022 and 31 January 2024 was concluded, by means of which RiTE Ugljevik undertook to pay to EGS-RI a principal totalling EUR 65.2 million.

Following all the completed agreements mentioned above and progress in the enforcement of EGS-RI claims, two matters remained opened in the Ugljevik case until the complete settlement of the relationships at issue: a debt arising from the unpaid interest amounting to EUR 67 million as per the final decision of the ad hoc arbitration tribunal and claims enforced by EGS-RI against Bosnia and Herzegovina in the institutional arbitration at the International Centre for Settlement of Investment Disputes (ICSID) in Washington. From 2020 and until 15 April 2026, the arbitration was at a standstill. In the meantime, HSE conducted intensive negotiations on behalf of EGS-RI with RiTE Ugljevik and ERS regarding open issues, resulting in a settlement accepted by both sides in the amount of over EUR 37.4 million, concluded in the form of a directly enforceable notarial instrument with a joint and several guarantee of the controlling company, ERS, and additional guarantees of the executive authority of Republika Srpska. With this settlement, the remaining claims from arbitration proceedings will be recovered until the end of 2031 in quarterly instalments based on a joint and several guarantee of Elektroprivreda Republike Srpske and additional guarantees of the Government of Republika Srpska to secure the necessary funds. Subsequently, the ICSID international arbitration will be terminated.

The disputes and negotiations between EGS-RI represented by HSE, RiTE Ugljevik and the state of Bosnia and Herzegovina are thus fully terminated with the agreement concluded today. The estimated value of all the agreements concluded regarding the payments of cash compensation and the supply of electricity amounts to more than EUR 230 million in nominal value. Legal proceedings and successful negotiations were conducted by HSE in cooperation with the law firm, Rojs, Peljhan, Prelesnik and Partners from Ljubljana and David A. Pawlak LLC from New York.

Dr Tomaž Štokelj, Chief Executive Officer of HSE, highlighted, “With today’s final settlement, we successfully ended a legal dispute between EGS and RiTE Ugljevik that lasted more than fifteen years and which arose from joint ventures before 1991. Based on committed and expert work, the exceptional negotiating team successfully asserted the interests of the state company, EGS-RI. Together with the already concluded agreements, today’s agreement anticipates payments of over EUR 188 million in cash compensation and the supply of one third of electricity from RiTE Ugjevik, which has already been implemented since February 2024. Furthermore, today’s final agreement sets solid foundations for good future business cooperation with Elektroprivreda Republike Srpske and RiTE Ugljevik.”

Uroš Podobnik, Chief Operating Officer of HSE, said, “I assess that we have gained the maximum that it was realistically possible to obtain for EGS-RI from the lengthy negotiations, especially when taking into account the additionally negotiated guarantee of Elektroprivreda Republike Srpske and the guarantees of the Government of Republika Srpska, the short repayment schedule, the direct enforceability of the claims and the potential negative consequences if the remaining open issues were resolved as a legal or arbitration dispute and not as a settlement agreement. Over the years, the HSE expert team has truly done exceptional work and I can safely say that this is an example of good practice on how to conduct negotiations in international legal proceedings.”

Public Relations and Marketing Communication Department of HSE