Tengrinews TV Радио Tengri FM Радио Жұлдыз FM Laws of Kazakhstan
KZ RU EN
Write us +7 (727) 388 8020 +7 (717) 254 2710
искать через Tengrinews.kz
искать через Google
искать через Yandex
USD / KZT - 315.55
EUR / KZT - 338.93
CNY / KZT - 45.73
RUB / KZT - 5.53

International Arbitrations bring $3 billion to Kazakhstan in 2013

21 february 2014, 20:08
0
Tengrinews.kz illustration
Tengrinews.kz illustration
Kazakhstan won $3 billion in international arbitrations in 2013, Tengrinews reports.

“In 2013, the Ministry of Justice defended Kazakhstan's state interests totally worth $3 billion in international arbitrations,” reported the Ministry.

There is a growing tendency for solving conflicts in international arbitrations. For instance, in 2003 the Ministry of Justice represented Kazakhstan in four cases with total claims amounting to $340 billion while in 2013 there were 37 cases amounting to $18.2 billion.

As of today, the Ministry of Justice has defended the interests of the state totally worth $15,7 billion and has paid a total of $217 million to plaintiffs.

Foreign investors have been bringing all sorts of lawsuits worth billions of dollars against Kazakhstan. Their claims included not only demands of compensation of direct loss, but also compensations for moral damage, lost profit and legal expenses.

In 2010, the AES Corporation initiated a lawsuit against Kazakhstan’s public bodies accusing them of allegedly violating the Energy Charter Treaty and agreements between the USA and Kazakhstan on mutual encouragement and protection of capital investments. Later, the claims worth $1.29 billion brought by AES Corporation against Kazakhstan were dismissed by the International Center for Settlement of Investment Disputes.

Caratube International Oil Company (CIOC) LLP claimed $1.2 billion against Kazakhstan, but the International Centre for Settlement of Investment Disputes rejected their arguments and ruled the CIOC to pay US$3.2 million to Kazakhstan towards its arbitration costs.‬

TauPower B.V and KT AsiaInvestmentGroup B.V claimed over a billion dollars each from Kazakhstan. In the World Wide Minerals Ltd. And KazUran cases, Kazakhstan won 3.7 billion dollars.

However, not all cases have been ending completely in Kazakhstan’s favor. Anatoli Stati and Gabriel Stati from AscomGroup S.A and TerraRafTransTraidingLtd submitted a request for arbitration to Stockholm Arbitration. The companies demanded $5 billion from Kazakhstan. The Arbitration agreed with Kazakhstan that the cost of assets and the rate of interest were unreasonably overstated. Consequently, the plaintiffs received only 10% of what there was claiming in the lawsuit. Kazakhstan still wants to lodge a complaint regarding the decision of the Stockholm Arbitration.

The Department of State Property Rights Protection was created by the Kazakhstan authorities to deal with international cases and ensure protection of the Kazakhstan's national interests.

"The Department of State Property Rights Protection is responsible for responding to the already existing disputes and preventing possible litigation. At this time the Department is analyzing subsurface use contracts and investment agreements in Kazakhstan that might lead to future arbitration or court proceedings," the Ministry commented.

Нравится
Add comment
Most Read
Most Discussed
Today
Week
Month