A Hong Kong-based company is seeking $2 billion in compensation after Panama's government seized control of two critical ports on the Panama Canal last week. Panama Ports Company, a subsidiary of CK Hutchison Holdings, announced Friday it is pursuing the damages through international arbitration proceedings.

Panama's government took control of the Balboa and Cristobal ports, located at each end of the Panama Canal, following a Supreme Court ruling that declared the company's concession to operate the facilities unconstitutional. The ports are crucial infrastructure for the waterway that handles significant global maritime trade.

Panama Ports Company had operated the two facilities since 1997 and renewed its 25-year concession in 2021. The seizure comes amid heightened scrutiny of Chinese involvement in Panama Canal operations, particularly after former U.S. President Donald Trump accused China of "running" the canal.

The port seizure has complicated a $23 billion deal announced in March 2024, in which CK Hutchison agreed to sell dozens of global ports, including the Panama facilities, to a consortium involving U.S. investment firm BlackRock. That transaction has stalled following objections from Beijing.

Panama Economy Minister Felipe Chapman had previously stated the company was seeking $1.5 billion in compensation, but Panama Ports Company said Friday that figure was incorrect. CK Hutchison accused Panama of taking the ports "without transparency" and said it would continue pursuing legal remedies through national and international proceedings.