Liglass Trading voiced the international arbitration courts to which it can file a lawsuit against Kyrgyzstan. The statement of the company appeared on its official website.
The Czech company believes that the statement of the Government of the Kyrgyz Republic that the agreement on the construction of small hydropower stations and two stations of the Upper Naryn cascade can be unilaterally terminated is not consistent with reality. Liglass Trading believes that the Cabinet thus misleads not only the President of the Kyrgyz Republic, the deputies of the Parliament, but also the public.
The company reminds that according to Article 7 of the investment agreement, if disputes arise between the parties, they must resolve them by negotiations within three months. If it is not possible to settle disputes through negotiation, the parties proceed to the dispute settlement procedure. The party receiving the claim must consider it within three months after receipt and must notify the other party of its decision to accept the claim, discuss the claim or deny the claim.
If a dispute is not settled in accordance with the points of the investment agreement, such dispute should be resolved in the manner established by the legislation of Kyrgyzstan.
«Legislation of Kyrgyzstan establishes the procedure for resolving investment disputes. In particular, it is prescribed in the law on investments. Article 18 of this law states that an investment dispute is resolved in accordance with any applicable procedure previously agreed upon between the investor and the state bodies of Kyrgyzstan. This does not exclude the use by the investor of other legal remedies in accordance with the legislation of Kyrgyzstan,» the statement says.
It is stated that the dispute can be resolved through consultations between the parties. If the parties do not come to a peaceful settlement of the dispute within three months from the date of the first written request for such consultation, any investment dispute shall be resolved in the courts of Kyrgyzstan, unless one of the parties requests its consideration by appealing to the International Arbitration.
Under the investment law, party can apply to the International Center for the Settlement of Investment Disputes or to arbitration or an international temporary arbitration tribunal (commercial court).
If the investment dispute is handed over to arbitration, Kyrgyzstan waives the right to demand the preliminary application of all internal administrative or judicial procedures before the dispute is transferred to international arbitration.
«Disputes between foreign investors and physical, legal entities of Kyrgyzstan can be resolved by agreement of the parties in an arbitration court, including those located outside its borders. According to the legislation of Kyrgyzstan, Liglass Trading CZ s.r.o has the right to apply to the International Center for the Settlement of Investment Disputes or to arbitration or to international temporary arbitration tribunal (commercial court),» Liglass Trading states.