Supreme Court Settles And Rio Government Will Have To Pay BRL 2 Billion In Compensation For Expropriation Of Manguinhos Refit Refinery Land

STF Understood That the Expropriation of the Manguinhos Refinery Land – Refit, in Rio de Janeiro Was Illegal Because the Land Belongs to the Union

The Manguinhos Refinery – Refit, under judicial recovery, received a favorable opinion from the Supreme Federal Court (STF), which discussed the validity of the state decree from Rio de Janeiro regarding the expropriation of the land. Petrobras: Duque de Caxias Refinery (Reduc) Starts Using Reused Water and Reduces Raw Water Consumption by Up to 5%

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The STF understood that the expropriation signed in 2012 by then-governor Sérgio Cabral was illegal because the land did not belong to Rio de Janeiro, but to the Union, and annulled the decree, ensuring the Manguinhos Refinery, now called Refit, possession of the property located at Avenida Brasil No. 3,141, Benfica neighborhood, in the capital of Rio de Janeiro.

The determination reinforces a preliminary decision by Minister Gilmar Mendes in 2014, which nullified the effects of the decree issued by then-governor of RJ, Sérgio Cabral.

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“In view of the manifest impossibility of expropriation by the State of Rio de Janeiro of the land subject to the expropriatory decree questioned in the records, as it encompasses property belonging to the Union, there is nothing to repair in the aggravated decision,” wrote Minister Gilmar Mendes, the rapporteur, in his vote.

The trial was held in a virtual session and concluded on the night of this Friday (21/08). In a parallel action, in the first instance, the Refit refinery has already obtained the right to damages.

The amount set by the Justice of Rio was R$ 700 million, about R$ 2 billion in updated values. The compensation was calculated based on the loss generated by the drop in the value of its shares on the stock market on the day the expropriation of the land was decreed by Sérgio Cabral.

“The company now hopes that the significant damages will be repaired, since the Supreme Federal Court itself recognizes the nullity of the decree. The amounts are relevant, but we understand that the current moment does not allow for the State to incur this additional expense. Therefore, we will seek with this decision from the Supreme a friendly solution that respects the serious fiscal situation of Rio and at the same time guarantees Refit’s rights to a fair compensation,” said Ricardo Magro, lawyer and representative of the refinery’s controlling shareholder and party in the action.

Refit assures that it will keep its shareholders and the market in general updated on the progress of the action.