Croatia withdraws from arbitration deal with Slovenia

Croatia withdraws from arbitration deal with Slovenia

"The process is contaminated, what was agreed on is unsustainable and Croatia is leaving the contract," said Milanovic.

He earlier in the day held consultations on this issue with representatives of parties in the Croatian parliament. MPs were unanimous that the country should withdraw from the arbitration agreement related to its border dispute with Slovenia.

Milanovic "would not comment on whether he spoke wit his Slovenian counterpart," and repeated that "the procedure has been contaminated," while his country "adhered to all the rules."

"The court of arbitration is in an awkward situation, perhaps through no fault of its own. I do not know whether it is the position of the Slovenian government to involve secret services. I cannot comment on that," said Milanovic.

When Slovenian journalists noted that the Slovenian prime minister said Croatia "cannot leave the arbitration unilaterally," Milanovic said, "it can and it will."

"Something like this has never happened before, I do not know whether the court of arbitration can to continue with its work," he added.

The affair that prompted Zagreb's decision broke out mid-last week when Croatia's Vecernji List daily published compromising transcripts, and then audio recordings that confirmed contacts between Slovenian member of the court Jernjej Sekolec and Slovenian representative before the court Simona Drenik, an official of the Ministry of Foreign Affairs.

This material showed they were working together on presenting arguments and planning ways to influence other judges in the border dispute proceedings.

Croatian President Kolinda Grabar-Kitarovic said at the time that the situation was "worrying" and called into question the objectivity of the procedure, while Minister of Foreign and European Affairs Vesna Pusic announced her country was considering withdrawing from the process.

The arbitration agreement was signed by then Croatian and Slovenian prime ministers Jadranka Kosor and Borut Pahor in November 2009, in Sweden.

The agreement provides for the establishment of an international arbitration tribunal to determine the border at sea and on land, Slovenia's access to open sea and the use of relevant maritime areas.

The court consists of five judges - one from Croatia and Slovenia each, while the remaining three are chosen by mutual agreement from a European Commission list.