10:40
USD 69.74
EUR 79.24
RUB 1.05

Government of Kyrgyzstan: Agreement with Liglass not provide for force majeure

Failure to perform its obligations by Liglass Trading on payment of $ 37 million in due time is the basis for termination of the investment agreement. The Government of Kyrgyzstan reported.

According to the Legal Representation Center of the Cabinet of Ministers, Liglass Trading was obliged by September 19, 2017 to transfer $ 37 million to purchase from Electric Stations JSC 50 percent of the shares of the Upper Naryn HPP CJSC. The company violated this obligation not transferring the money by the set date.

«Liglass turned to the Cabinet with a request to extend the period of transfer of funds according to the investment agreement, referring to force majeure, in fact recognizing that by September 19 it is not able to fulfill its obligations. Accordingly, it is indisputable that the Czech company has failed to fulfill its obligations. In this regard, the Government of the Kyrgyz Republic initiated the procedure for the termination of agreements unilaterally,» the message says.

It is puzzling that the Czech company refers to force majeure circumstances in fulfilling its obligations to pay monetary sum. The agreement does not provide for force majeure circumstances and they not apply to obligations to pay money.

Press Service of the Government of the Kyrgyz Republic

«The Kyrgyz Republic will take all measures provided for by the agreement and Kyrgyz law with respect to the violation by Liglass Trading, including recovery from the investor of unfulfilled obligations,» the Cabinet added.

The company itself, recall, threatens Kyrgyzstan with international arbitration.

Popular