Belgian Court Lifts Seizure of PAŻP Funds Sought by Pfizer
A court in Belgium on Thursday overturned a decision to seize funds of the Polish Air Navigation Services Agency (PAŻP) on behalf of pharmaceutical company Pfizer. The court sided with a complaint from PAŻP, which argued that it is not a party to the dispute between Pfizer and the Polish state over COVID-19 vaccines.
“The court confirmed that the funds from en-route charges belong to PAŻP, not to the State Treasury. The agency is a separate legal entity, has its own assets and manages its finances independently. It is not liable for the State Treasury’s obligations, so its funds cannot be used to satisfy Pfizer’s claims against Poland related to the COVID-19 vaccine purchase contract,” the Ministry of Health said in a statement. PAŻP, in a statement sent to PAP, said the ruling is favorable but is not yet final.
The case is tied to the dispute over Pfizer’s COVID-19 vaccines, which Poland did not take delivery of. On April 1 of this year, a Belgian court ruled in favor of the pharmaceutical company, ordering Poland to take delivery of about 64 million vaccine doses and pay the company PLN 5.644 billion. On July 1, the European Organisation for the Safety of Air Navigation (Eurocontrol) informed PAŻP, a Eurocontrol member, that in connection with the judgment, the accounts that receive navigation charges had been seized.
On Thursday, the court found the seizure unjustified and overturned the June 25 order on the basis of which Pfizer had seized those receivables.
In its complaint, PAŻP cited the Additional Protocol to the agreement between the Kingdom of Belgium and Eurocontrol, which took effect on August 9. The new provisions strengthened protection for en-route charges, which Eurocontrol collects from airlines and then passes on to member states.
The protocol states that these funds — like Eurocontrol’s assets and bank accounts — cannot be seized by creditors. At the same time, the organization will not be able to waive legal protection with respect to amounts owed to member states, primarily from en-route charges collected on their behalf. This means that funds transferred by Eurocontrol to member states are to receive the same protection as the organization’s own assets.
One of the points of contention was whether the protocol applied to enforcement proceedings already under way, which often happens in international law, or whether it was merely an additional argument reinforcing the main objection: that PAŻP does not have the legal standing of the State Treasury.
For its part, Pfizer argued before the Belgian court that PAŻP is linked to the Polish government and can receive an alternative source of funding from it.
On November 6, the Sejm, the lower house of Poland’s parliament, passed the budget-related act for 2027. Among other things, it allows the finance minister to grant PAŻP an interest-free loan of up to PLN 1.5 billion. The funds are meant to help ensure the agency’s financial liquidity in light of the dispute with Pfizer.
After Poland unilaterally withdrew from the COVID-19 vaccine supply contract in April 2022, Pfizer took the case to court in Belgium, where the agreement was signed. The Ministry of Health appealed the Brussels court’s ruling on August 3.
In its statement Thursday, the Ministry of Health stressed that the State Treasury — Minister of Health continues to use the legal remedies available to it, with respect for the competence and independence of Belgian courts. It added, however, that because of the ongoing proceedings, the ministry is not disclosing details of its arguments or planned legal actions. (PAP)
