The final arbitral award has been rendered in the case of Penwell Business Limited against Kyrgyzstan. The Legal Representation Center of the Cabinet of Ministers reports.
In accordance with the decision, the claimant’s demands for compensation in the amount of $298 million were rejected by the arbitral tribunal in full. In particular, the court ruled that when investing in Kyrgyzstan, the claimant repeatedly resorted to corrupt practices, both with the help of local partners and directly.
«This is the first case in the 30-year history of independent Kyrgyzstan, when the claims of a foreign investor were denied in full on the basis of corruption practices that took place. The decision serves as a signal that the Kyrgyz Republic is open for bona fide foreign investments made in compliance with the requirements of Kyrgyz legislation,» the statement reads.
The offshore company Penwell Business Ltd initiated international arbitration proceedings against Kyrgyzstan in July 2017. It claimed that the country’s authorities had allegedly expropriated its investments in BiMoCom LLC (MegaCom trademark).
Kyrgyzstan was represented in court by both the specialists of the Legal Representation Center and the lawyers of Willkie Farr & Gallagher LLP.