Arbitration case of the cellular service provider Sky Mobile for $73.8 million against Kyrgyzstan in the London Court of International Arbitration has been dismissed. The Ministry of Justice of Kyrgyzstan reported.
In November 2018, the Swiss companies VIP Kyrgyzstan Holding AG and Menacrest AG v. Kyrgyz Republic, subsidiaries of the VEON Holding (an international telecommunications company, formerly named VimpelCom), initiated an arbitration proceedings against the Kyrgyz Republic.
They demanded compensation of $58 million from the republic due to tax measures taken in relation to Sky Mobile cellular service provider (Beeline mobile provider).
Hearings on the disputable situation and on the validity of the plaintiffs’ claims to the Kyrgyz side were held in February 2021. During the past year, the parties submitted written arguments on their positions to the arbitration panel. On November 12, 2021, the arbitration panel issued a procedural order on the complete termination of the arbitration process and closure of this investment case. The decision was made due to the fact that the disputable situation between the parties was settled and the claims against Kyrgyzstan were completely withdrawn.
«One of the conditions of the settlement was that 96.2 percent of the arbitration costs from November 2018 will be covered by the plaintiffs themselves and only 3.2 percent — by the Kyrgyz side,» the Ministry of Justice said.
