HONG KONG (AP) — A subsidiary of the Hong Kong-based company CK Hutchison Holdings is seeking $2 billion in damages from the Panamanian government following the alleged illegal takeover of two vital ports located at each end of the Panama Canal. The Panama Ports Company made this announcement in a statement issued last Friday, asserting that it is pursuing this compensation through international arbitration proceedings that have already been initiated.

Last week, the government of Panama seized control of the Balboa and Cristobal ports after the country's Supreme Court ruled that the concession awarded to the Panama Ports Company to operate these ports was unconstitutional. Since 1997, the Panama Ports Company has been in charge of the two important ports and had recently renewed its concession in 2021 for an additional 25 years.

The matter has drawn attention from both the Beijing and Hong Kong governments, which have condemned Panama's actions. The ports became particularly significant after former U.S. President Donald Trump accused China in early 2022 of exerting control over the Panama Canal, drawing international scrutiny and raising geopolitical tensions.

In March of last year, CK Hutchison announced a significant deal to sell the majority of its global ports, including the two Panama ports, to a consortium involving the U.S. investment firm BlackRock for $23 billion. Following this announcement, the Chinese government quickly protested the deal, which has since faced considerable delays.

In its statement, the Panama Ports Company emphasized that it would not back down in its pursuit of compensation, asserting that CK Hutchison and the Panama Ports Company are committed to asserting all of their rights and the damages they are owed due to what they described as serious violations and anti-investor conduct by the Panamanian state.

Additionally, the Panama Ports Company addressed previous misstatements made by Panamanian officials concerning the amount of compensation being sought. Panama's Economy Minister, Felipe Chapman, had previously indicated that the amount in question was $1.5 billion, which has now been amended to the higher figure of $2 billion.

In a separate statement released on the same day, CK Hutchison accused the Panamanian government of unlawfully occupying the two ports and asserted that they took control of the Panama Ports Company's property and personnel without transparency. Furthermore, the company declared its intent to continue to pursue all available national and international legal avenues regarding the situation.

This escalating conflict between CK Hutchison and the Panamanian government highlights the significant geopolitical and economic interests tied to the Panama Canal, a crucial artery for global maritime trade. The developments raise questions about foreign investment security in Panama and the broader implications for international relations in the region.

In summary, the situation remains fluid as both parties prepare for further legal battles and diplomatic discussions in the wake of these recent actions and claims. The outcome could have lasting effects on Panama’s ability to attract foreign investment and manage its strategic economic assets.