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RusHydro lawsuit. Kyrgyzstan must submit objection before April 15, 2019

Kyrgyzstan has to submit objection to the detailed claim of RusHydro on the Upper Naryn cascade of hydropower plants by April 15, 2019. Company’s statement says.

According to it, in October, a number of media outlets cited statements by representatives of executive authorities of Kyrgyzstan and Electric Stations OJSC, containing inaccurate and distorted information regarding the situation related to the arbitration proceedings initiated by RusHydro and the intention to sell 50 percent of the shares of Upper Naryn HPPs Company.

On January 15, 2018, the notice of arbitration was sent to the President, the Prime Minister, the Ministries of Economy and Foreign Affairs, the State Committee for Industry, Energy and Subsoil Use, the Ministry of Justice and the Center for Judicial Representation of Kyrgyzstan.

«During 2018, with an active participation of representatives of Kyrgyzstan, the composition of the arbitration court was determined and the schedule of the arbitration proceedings was agreed upon. In accordance with it, on October 31, 2018, RusHydro sent a detailed statement of claim. The Kyrgyz Republic has to submit objections to it no later than on April 15, 2019,» the company said in the statement.

RusHydro claims that in 2016-2018 it repeatedly applied to Electric Power Stations OJSC, the National Energy Holding and the government regarding the transfer of 50 percent of shares of Upper Naryn Hydropower Plants CJSC. The obligation to take these shares into the ownership of Electric Stations company is provided by article 14 of the agreement on the construction and operation of the Upper Naryn HPP cascade dated September 20, 2012 upon its termination.

The decision to transfer the shares owned by RusHydro in Upper Naryn HPP Company before August 8, 2016 was taken as part of negotiations between authorized representatives of the parties held in Bishkek on June 2, 2016. In addition, by the resolution of the Parliament dated December 1, 2016, the government was entrusted to carry out the acceptance-transfer of the share of RusHydro in the authorized capital of the joint venture to the balance of Electric Stations," the company notes.

«Despite the indicated decisions, instructions and agreements, Kyrgyzstan does not take measures aimed at accepting the stake in Upper Naryn HPP into the ownership of Electric Stations OJSC. Thus, the statements that RusHydro did not officially inform the Kyrgyz side about its intentions with respect to the shares of the company also do not correspond to reality,» the statement says.

RusHydro stresses that it acts within the legal framework. The company, as before, is ready for a dialogue when discussing compensation by Kyrgyzstan of the costs incurred by the company due to participation in the project on the construction of the Upper Naryn HPP cascade.