US Steel files lawsuit against Slovakian government

US Steel files lawsuit against Slovakian government

US Steel Kosice reportedly initiated legal action against the Environment Ministry of Slovakia due to what the company deems excessive restrictions on carbon dioxide emissions. US Steel Kosice argues that the restrictions will cause dollar losses well into the hundred millions. Following an agreement with the European Commission (EC) within the framework of the Kyoto Protocol, the Environment Ministry of Slovakia restricted US Steel's emissions to 8% lower than what the company currently emits. The amount of emissions that the EC allocated to Slovakia is 14 percent lower than what the country had requested for 2005-2007. The restrictions will force US Steel Kosice to buy additional emission quotas from the market, costing the company over a hundred million dollars. Therefore, the company and its parent company, United States Steel Corporation, decided to press the government of Slovakia for compensation. The company's February 2005 gas emission report indicates that the company did not exceed the government's limits, although that is still a matter of dispute between the company and the government.