Kyrgyzstan has successfully concluded a protracted arbitration process in Paris, as announced by the Ministry of Justice. The arbitration, initiated in 2020, involved a Kazakh gas company, which initially sought $35 mn in compensation from its Kyrgyz partner. The claim was later reduced to $15 mn, with the abandonment of claims for lost profits, Sputnik Kyrgyzstan stated on January 31.
Background
A Kazakh gas company initiated UNCITRAL Arbitration Rules (1976) proceedings against the Kyrgyz Republic, focusing on a project for the joint operation and modernization of the Kyrgyz segment of the Tashkent-Bishkek-Almaty gas pipeline. The plaintiff originally sought $35 mn in compensation but later reduced the claim to $15 mn, relinquishing demands for lost profits. The dispute alleged expropriation and violations of the plaintiff's investment rights in the joint venture "KyrKazGas."
The composition of the tribunal featured esteemed international arbitrators: Royal Advocate Noah Rubins (France, Chairman), Sergey Vataev (Kazakhstan, appointed by the Claimant), and Alexey Zhiltsov (Russian Federation, appointed by the Respondent's Competent Authority). The Ministry of Justice expressed gratitude to legal consultants from the Paris office of Willkie Farr & Gallagher Paris and Kyrgyz-side lawyers.
Earlier, the Ministry of Justice highlighted 2023 as unique, with final hearings in three arbitration cases involving Kyrgyzstan. Two cases yielded positive decisions for the Kyrgyz Republic, including the Ferroalloy Plant in Tash-Kömür. The resolution of the third arbitration case initiated by a Lithuanian company is expected in the near future.
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