USD 84.79
EUR 98.70
RUB 1.20

Government of Kyrgyzstan and Centerra should settle legal disputes

The International Business Council calls on the government of Kyrgyzstan and Centerra Gold Inc. for consensus. The parties should begin consultations on the settlement of court disputes, the IBC said.

The organization reminded the words of Almazbek Atambayev that Kyrgyzstan should become a paradise for business, an investor, any entrepreneur: local and foreign, large and small. The President has set the task — creation and implementation of the Strategy for Sustainable Development of the country until 2040, based on human capital and innovation. One of the main tasks of both the future and the current strategy is to create a favorable investment climate in Kyrgyzstan. The NSDS recognized the mining industry as one of the strategic sectors of the economy.

The IBC stressed that the arbitration proceedings does not contribute to improving the investment attractiveness of our country. As of today, there are a number of suits at the international arbitration courts against Kyrgyzstan. One of them is the arbitration proceedings on Centerra’s lawsuit against the government on Kumtor project.

Centerra Gold Inc. is one of the largest investors and taxpayers in our country. In 2016, the company’s payments in the territory of the Kyrgyz Republic exceeded $ 238.45 million.

«Taking into account the importance of this investment project for the country, the IBC offers the government of Kyrgyzstan and Centerra to finish trials. According to experts, the claims of the State Ecological Inspectorate dated 2013 and the State Environment Protection Agency dated 2016 are almost the same. The state authorities want to recover money from the enterprise for reimbursement of the same damage caused, in the opinion of state bodies, by the disposal of waste in dumps," IBC noted.

However, according to the agreement between the Cabinet of Ministers of Kyrgyzstan and Centerra dated 2009, all claims for compensation of environmental damage in relation to Kumtor Operating Company, which took place before 2009, have already been settled by the amount of $22.4 million.

«We urge both sides to reach a compromise solution. This is necessary both for Centerra and for the government. State policy in the mining sector should be aimed at maintaining the balance of interests of the state and the investor," the statement says.