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Arbitration provides relief to Centerra in proceedings against Kyrgyzstan

An arbitrator has issued an order providing certain interim relief to Centerra in its ongoing arbitration against the Kyrgyz Republic and Kyrgyzaltyn JSC in connection with Kumtor project. Official website of the company says.

The interim relief granted by the arbitrator, among other things:

  • orders the Kyrgyz Republic to give 30 days' prior notice to the arbitrator and Centerra in the event of resumption of the claims brought by Kyrgyz Government entities in Kyrgyz courts relating to alleged environmental harm, dividends and land use, in order to allow Centerra to seek appropriate relief from the arbitrator;
  • directs the Kyrgyz Republic to give immediate notice to the arbitrator and Centerra if any procedural action is taken in the Kyrgyz court proceedings;
  • orders the Kyrgyz Republic to use its best efforts to ensure that public officials, authorities, agencies, and instrumentalities of the Kyrgyz Republic comply with her decision.

As previously disclosed, on January 12, 2017, Centerra filed with the Permanent Court of Arbitration a request for a partial award or, in the alternative, interim measures, against the Kyrgyz Republic in which Centerra sought an award ordering that the Kyrgyz Republic withdraw or stay (suspend) the Kyrgyz court proceedings, and related decisions, court orders and judgments, which proceedings have been continuously postponed for several months.

The order effectively prohibits the Kyrgyz Republic from taking further action in the Kyrgyz court proceedings without providing Centerra the opportunity to object to such action, and preserves for the arbitrator the authority to order the Kyrgyz Republic to refrain from taking any proposed action.

«Centerra will continue to pursue its claims in its main arbitration proceeding, which was commenced in May 2016 and remains ongoing. Responses to Centerra’s statement of claim are expected to be submitted by the Kyrgyz Republic and Kyrgyzaltyn in September 2017.

In the meantime, Centerra and the Government of the Kyrgyz Republic continue discussions with a view to settling all outstanding matters relating to the Kumtor Project," statement says.