Kyrgyzstan won the arbitration proceedings in The Hague with a total claim of $50 million. The Ministry of Justice reported.
Arbitration proceedings against Kyrgyzstan were initiated by a Kazakh company. It demanded compensation due to the alleged expropriation of investments within the framework of the unimplemented project on construction of complex ferroalloys plant in Tash-Kumyr city. The plaintiff also believed that international agreements and the Law on Investments in the Kyrgyz Republic had been violated.
«In 2021-2023, the parties submitted to the Arbitration Tribunal relevant written positions and materials with arguments on the merits of the dispute. The final hearing was held in The Hague (Netherlands) in April 2023. On September 28, the Tribunal (of 3 arbitrators) unanimously made an arbitral award, in which it recognized its competence to consider this dispute, and also recognized the plaintiff’s claims as subject to consideration,» the Ministry of Justice said.
The arbitrators did not find any breach of obligations by Kyrgyzstan, which would lead to the losses claimed by the plaintiff.
The Tribunal unanimously decided that the claims against Kyrgyzstan for compensation of any losses should be completely rejected. Moreover, the plaintiff is also obliged to pay all costs — fees of the arbitrators and administrative expenses of the Hague Permanent Court of Arbitration.
«The hearings were held in The Hague, but the place of arbitration is London (UK). In accordance with the provisions of the English Arbitration Act, the final award may be appealed within 28 days from the date of the award on a very limited range of grounds,» the Ministry of Justice concluded.
