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Upper Naryn cascade: Arbitration court rules in favour of RusHydro

An arbitral award has been made in the proceedings on the claim of RusHydro against Kyrgyzstan. The Ministry of Justice reports.

In July 2022, an arbitral award was made in city of Hong Kong (PRC) in the proceedings on the claim of RusHydro Public Joint Stock Company (PJSC) against Kyrgyzstan regarding the construction project of the Upper Naryn cascade of hydroelectric power plants. The claims of the plaintiff were partially satisfied.

It was ruled that Kyrgyzstan is obliged to compensate the funds invested by RusHydro in the Upper Naryn Cascade construction project through loans issued to the joint venture Upper Naryn Hydroelectric Power Plants CJSC.

«In the arbitration award, the arbitrators base their decision on the provisions of the intergovernmental agreement on the construction of the Upper Naryn Cascade, as well as numerous public statements by Kyrgyz officials from 2016 to 2020 on the actual recognition of the debt to RusHydro PJSC. The Legal Representation Center, together with the legal representatives of Kyrgyzstan, currently continues the analysis of the arbitral award, including whether there are grounds for appealing against it. The arbitral award can be appealed until October 2022,» the statement says.

In 2018, RusHydro filed a lawsuit in The Hague to recover $37 million spent on the construction of the Upper Naryn HPPs cascade. The Russian company terminated the contract with the government of Kyrgyzstan. The Board of Directors approved the termination of RusHydro’s participation in the Upper Naryn HPPs JSC by selling 2.5 million ordinary registered shares, or 50 percent of the authorized capital, in favor of Electric Stations OJSC at a price determined on the basis of the appraiser’s report.

In February 2022, the Chairman of the Cabinet of Ministers of Kyrgyzstan Akylbek Japarov announced end of the disputes over the Upper Naryn cascade and readiness of the Cabinet of Ministers to take on the debts of the power industry specialists.