Atome PLC notifies Paraguay of potential international arbitration

British company Atome PLC has issued a Notice of Dispute and Intention to Submit a Claim for Arbitration to the Republic of Paraguay. The notification is made under the Bilateral Investment Treaty (BIT) between the United Kingdom and Paraguay regarding the company’s Villeta project, a low-carbon fertilizer development involving a planned industrial investment of US$ 665 million.

Atome claims that the revocation of executive decrees which previously supported the project’s regulatory framework and provided certainty regarding energy purchase agreement (PPA) terms has compromised the project's economic and financial viability. The company stated that an independent assessment of damages places a potential claim in the “hundreds of millions of dollars,” though no formal arbitration has been initiated yet.

The Paraguayan Attorney General’s Office (Procuraduría General de la República) clarified that while a notice has been received, there is currently no active lawsuit or arbitration against the state. The notice triggers a three-month period intended for the parties to explore an amicable solution. The Paraguayan government is currently analyzing the company's claims and maintains its commitment to legal certainty and international obligations while defending national interests.