FIER, Albania – In a dramatic escalation of legal action in Albania’s energy sector, police arrested Hongping Xiao, CEO of Bankers Petroleum, and former company director Leonidha Çobo during a surprise raid on the company’s Fier headquarters. The operation, conducted jointly by Fier Police and the General Directorate of Taxation, follows years of mounting allegations surrounding tax evasion, financial mismanagement, and environmental violations.
Bankers Petroleum, Albania’s largest foreign investor in hydrocarbons and operator of the Patos-Marinza oil field, has now come under intensified scrutiny. Authorities reportedly broke into company offices alongside tax inspectors, seeking to collect unpaid fiscal obligations amounting to millions of euros.
This crackdown follows a major international arbitration ruling in 2023, where the International Chamber of Commerce (ICC) rejected Bankers’ attempt to claim over $236 million in unrecoverable costs. The tribunal’s ruling sided with the Albanian government, criticizing the company’s procurement practices, inflated expenses, and misuse of public resources.
From Arbitration Win to Criminal Charges
Albania’s Ministry of Infrastructure and Energy hailed the ICC decision as a major legal victory, opening the door for increased government revenues from oil field profits. Tuesday’s arrests suggest a broader criminal probe has since gained momentum.
Local communities and environmental activists have long accused Bankers Petroleum of polluting the Marinzë area. Complaints about groundwater contamination and land degradation continue, despite earlier promises by the company to invest in cleanup and community programs.
An Investor’s Fall From Grace
Initially founded by Canadian investors and sold in 2016 to China’s Geo-Jade Petroleum, Bankers was once seen as a symbol of Albania’s modernization and energy revival. The company held exclusive control over 44,000 acres in Patos-Marinza after a $34 million deal with state-owned Albpetrol in 2011.
Yet in the last decade, relations with the government have deteriorated, with repeated disputes culminating in arbitration and now criminal prosecution.
Implications for Business and Governance
The arrests have sent shockwaves through Albania’s investment community and could cast a shadow over foreign interest in the country’s resource sectors. With Albania seeking closer ties to the European Union, legal experts warn this case could prompt similar reviews of legacy contracts and regulatory enforcement across the Balkans.
Authorities have yet to release full details of the charges, but a law enforcement statement is expected soon.
For now, the high-profile arrests mark a decisive moment in Albania’s battle for corporate transparency, fiscal justice, and environmental accountability in one of its most lucrative industries.
