Luxembourg court blocks ČEZ holdings in local companies over dispute

A Luxembourg court has blocked the holdings of Czech semi-state energy firm ČEZ in local companies that control gas distributor GasNet, seizing assets as part of a long-running legal dispute involving entrepreneur Josef Šťáva and the Czech state.

Luxembourg Court Halts ČEZ Gas Assets in Seizure Order

ČEZ announced on its website that it received notification from a Luxembourg court bailiff regarding two separate rulings directed at Czech Gas Networks S.à r.l. (CGN) and Czech Gas Networks Investments S.à r.l. (CGNI). ČEZ holds approximately a 55 percent stake in CGN, which entirely owns CGNI. In turn, CGNI acts as the parent owner of Czech Grid Holding, the corporate entity that holds GasNet and GasNet Služby.

The Luxembourg measures restrict both CGN and CGNI from disposing of asset values belonging to the Czech Republic and ČEZ that are currently held by those companies. The Czech state owns roughly 70 percent of ČEZ. The legal maneuver marks a widening international front in efforts by Diag Human to enforce its multibillion-crown claim against the state.

Energy Firm Denies Legal Liability in State Dispute

ČEZ forcefully rejected the court orders, labeling the actions illegal and harassment. The energy firm stated that Diag Human SE never held any legal claim or title against ČEZ or any other entity within the ČEZ Group that would permit legal action or demands for payment.

Společnost Diag Human SE nemá ani nikdy neměla vůči společnosti ČEZ ani vůči žádné jiné společnosti ze Skupiny ČEZ žádný právní nárok ani jiný právní titul, na jehož základě by se mohla vůči těmto společnostem domáhat jakéhokoli plnění nebo vůči nim činit právní kroky.

Společnost ČEZ

The company emphasized that any claims asserted by Šťáva or his entities can only target the Czech Republic directly. ČEZ pointed out that it is not named in the arbitration award, did not participate in the original arbitration proceedings, and had no involvement in the matter.

Decades of Litigation Precede International Asset Freeze

A London court ruling last year affirmed Šťáva’s compensation entitlement. Following that confirmation, HlídacíPes.org reported this January that Diag Human had initiated legal steps to recover the award by targeting foreign holdings connected to the Czech state, specifically focusing on the corporate structures where ČEZ holds interests.

Legal Challenges Await Luxembourg Judicial Review

ČEZ confirmed plans to file formal lawsuits in Luxembourg within the coming days to overturn the freezing orders. Relying on internal legal analyses, company representatives stated that they expect the local courts to cancel the restrictions within a matter of months.

When similar enforcement actions surfaced earlier in the year, ČEZ maintained that the operational activities of GasNet remained unaffected by the legal disputes abroad. The exact timeline for the upcoming court hearings remains unconfirmed.