On Arbitration

The Law of the Republic of Kazakhstan No. 488-V ЗРК, dated 8 April 2016.

      To the attention of Users!
      THE CONTENT was created for RCLI convenient use.

      This Law regulates public relations arising in the course of arbitration activity in the territory of the Republic of Kazakhstan, as well as the procedure and conditions for recognition and enforcement of arbitral awards in Kazakhstan.

Chapter 1. GENERAL PROVISIONS

Article 1. Scope of Application

      This Law applies to disputes resulting from civil law relationships between individuals and (or) legal entities, regardless of place of residence or location of subjects of the dispute within or outside the state, resolved in arbitration, unless otherwise established by legislative acts of the Republic of Kazakhstan.

Article 2. Basic Definitions Used in the present Law

      The following basic definitions are used in the present Law:

      1) Public Policy of the Republic of Kazakhstan is the fundamentals of law and order, enshrined in the legislative acts of the Republic of Kazakhstan;

      2) Court is a court of the judicial system of the Republic of Kazakhstan, which is authorized to hear cases on disputes arising from civil law relationships in the first instance, in accordance with the civil procedure laws of the Republic of Kazakhstan;

      3) Arbitration is an arbitration, which is set up specifically for a certain dispute consideration, or a permanent arbitral institution;

      4) Arbitration Agreement is a written agreement by the parties to submit to arbitration any dispute which has arisen or which may arise from civil law relationships;

      5) Rule of Arbitration are the procedure for organizing the activities of permanent arbitral institution and the rules of arbitral proceedings;

      6) Arbitral proceedings mean a process of dispute consideration;

      7) Parties to the arbitral proceedings (hereinafter referred to as 'the Parties') are claimant and respondent between whom the arbitration agreement is concluded;

      8) Arbitral award is a decision passed by the arbitration;

      9) Arbitrator is physical person elected by the parties or appointed in accordance with the present Law and (or) the rules of the relevant arbitration to resolve the dispute;

      10) Business practices are the rules of conduct that have been established and are widely used in civil law contracts, which do not contradict the applicable law, regardless of whether they are recorded in any document.

Article 3. The Legislation of the Republic of Kazakhstan on arbitration

      1. The legislation of the Republic of Kazakhstan on arbitration is based on the Constitution of the Republic of Kazakhstan and consists of the this Law and other regulatory legal acts of the Republic of Kazakhstan.

      2. If an international treaty ratified by the Republic of Kazakhstan establishes rules other than those which are contained in the present Law, the rules of the international treaty shall be applied.

Article 4. Types of Arbitration

      1. Arbitrations in the Republic of Kazakhstan may be established in the form of permanent arbitral institution or arbitration to resolve a certain dispute.

      2. Permanent arbitral institutions may be established by physical and (or) legal entities in accordance with the legislation of the Republic of Kazakhstan.

      Permanent arbitral institution shall approve the rules of arbitration, the register of arbitrators who will undertake activities in this arbitration.

      3. Arbitration for consideration of a certain dispute shall be established by the parties to resolve the dispute and shall perform activities until the dispute is resolved or until the parties decide to submit the dispute to court.

      4. In the Republic of Kazakhstan, arbitrations may not be established by government bodies, state enterprises, and natural monopolies entities, and also entities with a dominant position on a goods and services market, legal entities fifty or more percent of voting shares (shares in the authorized capital stock) of which are owned directly or indirectly by the state, their subsidiaries and affiliates, as well as by second-tier banks, enterprises engaged in certain types of banking operations.

Article 5. Principles of Arbitral Proceedings

      Arbitral proceedings shall be carried out in compliance with the following principles:

      1) autonomy of the will of the parties, which means that the parties, by prior agreement between them, have the right to independently determine the procedure and conditions for the arbitral proceedings of a dispute that has arisen or may arise;

      2) legality, meaning that arbitrators and arbitrations in their decisions shall be guided only by the rules of law applicable by agreement of the parties;

      3) independence, which means that arbitrators and arbitrations are independent in resolving disputes submitted to them and make decisions in conditions that exclude any impact on them;

      4) competitiveness and equality of the parties, which means that the parties to the arbitral proceedings determine their position, methods and means of defending it independently of anyone, and shall enjoy equal rights and bear equal obligations;

      5) justice, which means that arbitrators and arbitrations in resolving disputes submitted to them and parties to the arbitral proceedings shall act in good faith, in compliance with the established requirements, the public moral principles and business ethics rules;

      6) confidentiality, which means that the arbitrators and participants of the arbitral proceedings shall not be entitled to disclose information that became known during the arbitral proceedings without the consent of the parties or their successors and may not be questioned as witnesses about the information that became known to them during the arbitration, except as provided by the laws of the Republic of Kazakhstan;

      7) autonomy of an arbitration agreement, which means that the termination, amendment or invalidation of an arbitration clause does not result in the termination, amendment or invalidation of a main agreement. Accordingly, the termination, amendment or invalidation of a main agreement shall not result in the termination, amendment or invalidation of a arbitration clause.

Article 6. Waiver of Right to Object

      A party that knows that any provision of this Law or any requirement of the arbitration agreement has not been complied with and yet proceeds with the arbitral proceedings without stating any objections to such noncompliance during the period specified by the rules of arbitration, shall be deemed to have waived his right to object.

Article 7. Inadmissibility of Intervention in the Activities of Arbitration

      Arbitrators and arbitrations in resolving disputes submitted to them are independent, make decisions in conditions that exclude any intervention in their activities by state bodies and other institutions except where so provided in the present Law.

Article 8. Submission of Dispute to Arbitration for Settlement

      1. A dispute may be submitted to arbitration provided that there is an arbitration agreement concluded between the parties.

      2. An arbitration agreement may be concluded by the parties in respect of disputes that have arisen or may arise between the parties in relation to a particular civil law relationship.

      3. An arbitration agreement related to the dispute pending in a court may be concluded a decision on the dispute is taken by that court. In this case, the court makes a decision to leave the application without consideration.

      4. An arbitration agreement on the settlement of a dispute under an agreement, the terms of which are determined by one of the parties in the set forms or other standard forms and could be accepted by the other party only by joining the proposed agreement as a whole (the agreement of accession), shall be deemed valid if such agreement is concluded after the emergence of grounds for a claim.

      5. By agreement of the parties, disputes arising from civil law relations between individuals and (or) legal entities may be submitted to the arbitration.

      6. Unless otherwise agreed by the parties, when submitting a dispute to a permanent arbitration, the rule of permanent arbitration shall be deemed to be an integral part of the arbitration agreement.

      7. An arbitration agreement may be terminated by agreement of the parties in the same manner in which it was concluded.

      8. Disputes involving the interests of minors, persons legally recognized incapable or partially capable, relating to rehabilitation and bankruptcy, between entities of natural monopolies and their customers, between state bodies, entities of quasi-state sector are not within the jurisdiction of arbitration.

      9. Arbitration shall not be entitled to consider disputes arising from personal non-property relationships not related to property.

      10. Arbitration shall not be entitled to consider disputes between individuals and (or) legal entities of the Republic of Kazakhstan, on the one part, and state bodies, state enterprises, and legal entities, fifty or more percent of the voting shares (shares in the authorized capital) of which directly or indirectly owned by the state, on the other part, without consent of the authorized body of the relevant industry (in respect of the republican property) or the local executive body (in respect of municipal property).

      State bodies, state enterprises, as well as legal entities, fifty or more percent of the voting shares of which (shares in the authorized capital) are directly or indirectly owned by the state, intending to conclude an arbitration agreement must send a request to the authorized body of the relevant industry (in respect of republican property) or local executive body (in respect of municipal property) to give consent to conclude such agreement indicating projected costs of arbitral proceedings. The authorized body of the relevant industry or local executive body is shall within fifteen calendar days to consider the request and send a written notice of consent or a reasoned refusal. When considering the request, the authorized body of the relevant industry or local executive body shall take into consideration the economic security and interests of the state.

Article 9. Form and Content of Arbitration Agreement

      1. An arbitration agreement shall be made in writing. An arbitration agreement is considered to be concluded in writing if it is made in the form of an arbitration clause in a document that is signed by the parties, or concluded by means of exchanging letters, telegrams, telephone messages, faxes, electronic documents or other documents that define the entities and the content of their will.

      2. An arbitration agreement is also considered concluded in writing if it is concluded by the exchange of a statement of claim and a statement of defense in which one of the parties states the availability of an agreement and the other one does not object to it.

      3. A reference in a contract to a document containing a term for the submission of a dispute to arbitration shall be deemed an arbitration agreement provided that the contract is in writing and that reference is such as to make the arbitration agreement a part of the contract.

      4. The arbitration agreement shall contain:

      1) intention of the parties to submit the dispute to arbitration;

      2) indication of the subject matter to be considered by the arbitration;

      3) indication of particular arbitration;

      4) consent of the authorized body of the relevant industry or local executive body in the case provided for in paragraph 10, article 8 hereof.

      Additional terms of the arbitration agreement may be determined by agreement of the parties.

      5. Excluded by the Law of the Republic of Kazakhstan dated February 27, 2017 No. 49-VI (shall be enforced upon the expiry of ten calendar days after the date of its first official publication).
      Footnote. Article 9 as amended by the Law of the Republic of Kazakhstan No. 49-VI dated February 27, 2017 (shall be brought to effect upon the expiry of ten calendar days after its first official publication).

Article 10. Arbitration Agreement and Substantive Claim Before Court

      A court in which an action is brought in a matter which is the subject of an arbitral proceedings shall, if any of the parties so requests, not later than when submitting his first statement on the substance of the dispute, stay its proceedings and refer the parties to arbitration unless it finds that the arbitration agreement is null and void, inoperative or incapable of being performed.

Chapter 2. ARBITRATION CHAMBER OF KAZAKHSTAN

Article 11. Establishment, Reorganization and Liquidation of the Arbitration Chamber of Kazakhstan

      1. The Arbitration Chamber of Kazakhstan (hereinafter referred to as the Arbitration Chamber) is a non-profit organization representing an association of permanent arbitrations, arbitrators, established in order to create favorable conditions for the implementation, promotion, and support of the activities of arbitrations in the Republic of Kazakhstan in the manner established by the legislative acts of the Republic of Kazakhstan.

      2. Reorganization and liquidation of the Arbitration Chamber shall be carried out in accordance with the laws of the Republic of Kazakhstan.

Article 12. Authorities of the Arbitration Chamber

      1. The Authorities of the Arbitration Chamber are as follows:

      1) representation and protection of interests of arbitrators and permanent arbitrations in the state bodies of the Republic of Kazakhstan, foreign and international organizations;

      2) monitoring of the state of arbitration activity in the Republic of Kazakhstan and keeping case files in permanent arbitrations;

      3) training and professional development of arbitrators;

      4) maintenance of register of arbitrators of the permanent arbitrations, as well as arbitrators who are members of the Arbitration Chamber;

      5) approval of rules of case files keeping in permanent arbitrations;

      6) appointment of arbitrators (arbitrator) from among the persons included in the registers of the Arbitration Chamber or permanent arbitration, in the cases provided for in paragraph 6, article 14 hereof;

      7) decision making on the termination of authorities of arbitrator appointed to resolve a particular dispute;

      8) other authorities provided for by the constituent documents of the Arbitration Chamber in accordance with the laws of the Republic of Kazakhstan.

      2. The register of the Arbitration Chamber is a database of arbitrators of permanent arbitrations, as well as arbitrators who are members of the Arbitration Chamber.

      The register of arbitrators shall be placed on the website of the Arbitration Chamber in the Kazakh and Russian languages.

      3. When monitoring the custody of cases by permanent arbitrations, the Arbitration Chamber is subject to the principle of confidentiality.

      4. The governing bodies of the Arbitration chamber are as follows:

      1) the highest governing body is the General Meeting of members;

      2) permanent collegial governing body is the Board;

      3) sole executive body is Chairman of the Board;

      4) internal control body for financial and economic activities of the Arbitration Chamber is Audit Commission (Auditor).

Chapter 3. COMPOSITION OF ARBITRATION

Article 13. Arbitrators

      1. An individual to be selected (appointed) as an Arbitrator shall not be directly or indirectly interested in the outcome of a case, be independent from the parties, agree to perform duties of arbitrator, be at least thirty years old, have higher education and work experience in the specialty of at least five years.

      A sole arbitrator shall have higher education in Law. In the case of collegial dispute resolution, the Chairman of the Arbitration shall have higher education in Law.

      By agreement of the parties, a citizen of the Republic of Kazakhstan, a foreigner or a stateless person may be elected as an arbitrator.

      2. Additional requirements to the candidates to arbitrator may be agreed by the parties directly or determined by the rules of permanent arbitration.

      3. A person may not be appointed as an arbitrator if s/he:

      1) has been elected or appointed as a judge pursuant to the procedure established by the law of the Republic of Kazakhstan;

      2) has been acknowledged to be incapable or partially capable by a court in accordance with the procedure established by the law of the Republic of Kazakhstan;

      3) has an unexpunged or unspent conviction, or being charged with a criminal offence;

      4) is a public servant, a Deputy of the Parliament of the Republic of Kazakhstan, a Deputy of the Maslikhat operating on a permanent or full-time basis, paid from the state budget, and a military serviceman.

Article 14. Composition of Arbitration

      1. The composition of the arbitration may be sole or collegial.

      The composition of the arbitration shall be formed by election (appointment) of arbitrators (arbitrator) by agreement of the parties.

      2. The parties are free to determine the number of arbitrators, the number must be odd.

      Unless otherwise agreed by the parties, three arbitrators shall be elected (appointed) to resolve a dispute in arbitration.

      3. In permanent arbitration, the composition of arbitration shall be formed in accordance with the procedure established by the rules of permanent arbitration and the arbitration agreement.

      4. For a particular dispute resolution, the composition of arbitration shall be formed in accordance with procedure agreed by the parties.

      5. When composing arbitration consisting of three arbitrators, unless otherwise agreed by the parties or the dispute is not arbitrated by a permanent arbitration, each party shall appoint one arbitrator, and the two arbitrators thus appointed shall elect the third presiding arbitrator.

      6. In the absence of consent between the parties, the head of the permanent arbitration and, if the dispute is considered by the arbitration formed to resolve a particular dispute, the Arbitration Chamber may, within thirty calendar days, at the request of one of the parties to the dispute, appoint arbitrators (an arbitrator) from the register of arbitrators of the Arbitration Chamber or permanent arbitration in cases where:

      1) the party has not appointed an arbitrator within thirty calendar days from the date of receipt of the request from the other party, unless other term is established by the rules or by agreement of the parties;

      2) two arbitrators within thirty calendar days after their appointment, unless other term is established by the rules or by agreement of the parties, have not agreed on the choice of the third arbitrator;

      3) the parties have not agreed on the choice of a sole arbitrator.

      The decision of the head of the permanent arbitration in respect of arbitrators appointment shall not be subject to cancellation.

Article 15. Register of Arbitrators

      1. The register of arbitrators is a database containing information about the arbitrators operating in the territory of the Republic of Kazakhstan.

      The register of arbitrators shall contain arbitrator's last name, first name and patronymic (if indicated in the identification document), work experience, place of work, position and period of work, academic degree and academic title (if available), number of cases arbitrated.

      2. Information about the arbitrators shall be provided at the request of interested parties.

      3. The rules for maintaining and using the register of arbitrators shall be approved by the Arbitration Chamber.

Article 16. Conditions of Permanent Arbitration Activity

      1. Permanent arbitration shall maintain a register of its arbitrators. Information about a permanent arbitration including its legal address, regulations, and register of arbitrators shall be posted in the media including in Internet resources for free familiarization of individuals and legal entities. Information about arbitral awards shall be posted with the consent of the parties to the dispute.

      2. Permanent arbitration shall store files of arbitrated disputes in the manner specified in its Rule. Control over the storage of case-files by permanent arbitration shall be carried out by the Arbitration Chamber.

Article 17. Challenge of Arbitrator

      1. Parties may challenge an arbitrator in the case if s/he does not meet the requirements set forth in article 13 herein.

      2. The following circumstances causing doubts in his/her impartiality and (or) competence are also grounds for challenging an arbitrator, if:

      1) a person closely related to the arbitrator is a party to the dispute or the arbitrator can otherwise expect a significant benefit or damage for him/herself depending on the outcome of the dispute resolution;

      2) an arbitrator or a person closely related to him/her is a chief of a legal entity, its branch or representative office that is a party to the dispute, or otherwise represents a party or another person who can expect significant benefit or damage depending on the outcome of the dispute;

      3) an arbitrator acted as an expert or otherwise has determined his position in the dispute in advance or assisted a party to the dispute in preparing or presenting his/her position;

      4) an arbitrator has received or demanded remuneration in connection with the hearing of case, not provided for by the present Law;

      5) an arbitrator unreasonably fails to comply with the terms of the arbitral proceedings.

      For the purposes of this Law, a closely related person shall be deemed a person who is a spouse of arbitrator or his / her close relative, a marriage-relative or an employee of a permanent arbitration, a person having employment or other contractual relationship with the arbitrator, or has other liaisons which evidence his/her dependence on the arbitrator.

      3. When a person is approached in connection with his possible election (appointment) as an arbitrator, s/he shall disclose any circumstances which may become grounds for his/her challenge in accordance with article 13 hereof. In the event such circumstances have arisen during the arbitral proceedings, an arbitrator shall immediately notify the parties and withdraw from his/her office.

      4. A party may challenge an arbitrator elected by him in accordance with this article only if the party became aware of circumstances giving rise to the challenge after the composition of arbitration for that case has been formed.

      5. In a permanent arbitration, the procedure for challenging an arbitrator may be determined by its Rule.

      6. In an arbitration for particular dispute resolution, the procedure for challenging an arbitrator may be agreed by the parties.

      7. If the procedure for challenging an arbitrator has not been agreed by the parties or determined by the Rules of the permanent arbitration, a written justified statement of arbitrator challenge shall be submitted by a party to the arbitration within thirty calendar days after the party has become aware of circumstances becoming the grounds for challenge.

      If a challenged arbitrator denies the challenge or one of the parties disagrees with the challenge of an arbitrator, arbitrators of the arbitration shall decide on the challenge within ten calendar days after receipt of the written justified statement from a party.

      The challenge of a sole arbitrator shall be decided by that arbitrator.

      If a sole arbitrator denies the challenge by one or both parties or one of the parties does not agree with the challenge of an arbitrator, the parties shall decide on the termination of the arbitral proceedings by that composition of arbitration.

Article 18. Termination of Authority of Arbitrator

      1. The Arbitrator's authorities can be terminated by agreement of the parties on the grounds provided for in article 17 herein, and also in the case of non-fulfillment of his functions during a period established for considering a dispute or inability to fulfill obligations due to illness, death or abandonment of his authority to deal with a dispute.

      In the case of disagreement regarding any of the grounds specified in the first part of this paragraph, any party may apply to the head of the permanent arbitration for making decision on the termination of an arbitrator’s authority.

      The decision on the termination of an arbitrator's authority shall not be subject to cancellation.

      2. In the event of termination of the authority of the composition of the arbitration, the proceedings on the pending dispute shall be suspended until the election (appointment) of another composition of the arbitration.

      3. Authority of an arbitrator shall terminate upon the entry into force of the arbitral award to a particular case or if the parties have agreed on such termination. In the cases provided for in articles 50 and 51 hereof, the authorities of an arbitrator shall be renewed and then terminated after taking the proceedings stipulated in the above indicated articles.

Article 19. Substitution of Arbitrator

      Where the mandate of an arbitrator terminates, a substitute arbitrator shall be elected (appointed) according to the rules that were applicable to the election (appointment) of the arbitrator being replaced.

      An elected (appointed) substitute arbitrator shall be entitled to order rehearing.

Chapter 4. CONDUCT OF ARBITRAL PROCEEDINGS

Article 20. Power of Arbitration to Rule on its Jurisdiction and Order Interim Measures

      1. The Arbitration shall independently decide with respect to the existence or lack of his authority (jurisdiction) to arbitrate a dispute referred to it, including in the cases where one of the parties objects to arbitral proceedings due to the invalidity of the arbitration agreement. In view of this an arbitration clause forming part of the contract, shall be interpreted as an agreement independent of the other terms of the contract. A decision by an arbitration on the invalidity of the contract shall not entail the invalidity of the arbitration clause.

      2. A party has the right to raise a plea that the arbitration does not have jurisdiction to arbitrate a referred dispute not later than the submission of the statement of his first statement on the substance of the dispute.

      3. A party has the right to raise a plea that the arbitration exceeded its authority if the matter raised during the arbitral proceedings appeared to be beyond the scope of the arbitration agreement or cannot be the subject of the arbitration in accordance with the rules of applicable law or the rules of arbitral proceedings.

      4. An arbitration shall within ten calendar days to consider a plea in accordance with paragraphs 2 and 3 of this article. Determination shall be rendered based on the results of the plea consideration.

      5. When considering the issue on its jurisdiction, if an arbitration renders a determination that the arbitration does not have jurisdiction to consider a dispute, the arbitration may not consider dispute on the merit.

      6. Unless otherwise agreed by the parties, the arbitration may, at the request of any party, order any party to take such interim measures of protection as the arbitration may consider necessary in respect of the subject-matter of the dispute.

Article 21. Determination of Rules of Arbitral Proceedings

      1. A permanent arbitration shall conduct arbitral proceedings in accordance with its Rule and arbitration agreement.

      2. The arbitral proceedings in respect of a particular dispute shall be conducted in accordance with the agreed by the parties rules.

      The rules of arbitration not determined by the rules of permanent arbitration, by the provisions of the present Law, and not agreed by the parties shall be determined by the arbitration.

      3. Powers conferred upon the composition of the arbitration include the power to determine the admissibility, relevance, materiality and weight of any evidence.

Article 22. Place of Arbitral Proceedings

      The parties are free to agree on the place of arbitral proceedings except in cases where a dispute is referred to permanent arbitration. Failing such agreement, the place of arbitration shall be determined by the arbitration having regard to the circumstances of the case, including the convenience of the parties.

Article 23. Statement of Claim

      1. A claimant shall state claims in his statement of claim to be submitted in writing to the arbitration. A copy of the statement of claim shall be sent the respondent.

      2. The statement of claim shall state:

      1) date of filing the claim;

      2) names of the parties, postal addresses and bank details;

      3) justification for applying to arbitration;

      4) demand of claimant;

      5) circumstances supporting a claimant's demand;

      6) evidences supporting the claim;

      7) sum in dispute, if statement of claim to be evaluated;

      8) a list of documents and other materials enclosed to the statement of claim.

      The statement of claim shall be signed by claimant or his representative appended by an original power of attorney or other document certifying the authority of the representative.

      3. Additional requirements to the content of the statement of claim may be determined in the Rule of Arbitration.

Article 24. Statement of Defense to the Statement of Claim

      1. A respondent has the right to submit his defense in respect of the statement of claim with objection to the claim to the claimant and the arbitration. A response to the statement of claim shall be submitted to the claimant and the arbitration in the manner and time provided for by the rules of arbitration or by agreement of the parties.

      If the deadline for submitting defense to the statement of claim is not determined in the Rule of Arbitration, the defense shall be submitted not later than ten calendar days before the first session of the arbitration.

      2. A party has the right to amend and (or) supplement his claims and (or) objections to the claim during the arbitral proceedings.

Article 25. Instituting Arbitral Proceedings

      1. An Arbitration having accepted the statement of claim, within ten calendar days, unless otherwise established by the rules or by agreement of the parties, shall render a determination to initiate arbitral proceedings in accordance with the Rules of Arbitration or the rules agreed by the parties, communicate to the parties the place of its consideration, and offer an respondent to submit a written defense to the statement of claim.

      2. Failure of a respondent to communicate his statement of defense shall not constitute a bar to the proceedings.

Article 26. Commencement of Arbitral Proceedings

      1. Unless otherwise agreed by the parties, the arbitration shall decide whether to hold oral hearings for the presentation of evidence or for oral argument, or whether the proceedings shall be conducted on the basis of documents and other materials. However, unless the parties have agreed that no hearings shall be held, the arbitration shall hold such hearings at an appropriate stage of the proceedings, if so requested by any party.

      2. Unless otherwise agreed by the parties, the arbitral proceedings in respect of a particular dispute shall commence on the date on which a request for that dispute to be referred to arbitration is received by the respondent.

      3. An arbitrator shall give notice of the time and place of arbitration session in advance and in the right manner, unless otherwise agreed by the parties.

      4) Unless otherwise agreed by the parties, copies of all documents, materials and other information submitted to the arbitration by one of the parties, shall be supplied by the arbitration to the other party within seven calendar days from the date of receipt by the arbitration. Expert reports shall be communicated by the arbitration to the parties before the beginning of the arbitral proceedings.

Article 27. Dismissal of Statement of Claim

      1. An arbitration shall dismiss a statement of claim if:

      1) there is no arbitration agreement between the parties;

      2) a claim was submitted to the arbitration which is not provided for in the arbitration agreement;

      3) subject matter of the claim is beyond the scope of the arbitration agreement;

      4) the interests of third parties who are not parties to the arbitration agreement are affected;

      5) a statement of claim is signed by a person who has no authority to sign it;

      6) a claimant submitted an application for disallowing the statement of claim;      

      7) in the proceedings of the same or another arbitration there is a case in a dispute between the same parties, on the same subject-matter and on the same grounds.

      2. When dismissing a statement of claim, the arbitration shall render a justified determination.

      3. The disallowing of statement allows the claimant to refile the claim to the same respondent, on the same subject-matter and grounds to the arbitration while meeting the requirements determined by the legislative acts of the Republic of Kazakhstan, the Rules of the relevant permanent arbitration or by the agreement of the parties.

Article 28. Language of Arbitral Proceedings

      1. The parties are free to agree on the language or languages to be used in the arbitral proceedings. Failing such agreement, the arbitration shall determine the language of the proceedings having regard to the language of the statement of claim referred to the arbitration or the language of the arbitration agreement.

      If during the preparation for case proceeding in the arbitration, it appeared that claimant does not speak the language, in which his representative has filed the statement of claim, then upon a written application by the claimant the arbitration shall render a determination to change the language of legal proceedings.     

      The participants of the proceeding not speaking the language on which the arbitral proceeding is conducted shall be entitled to familiarise with the materials of the case and participate in the arbitral proceedings with a translator, and also to address the arbitration in his native language. The party shall on his own engage a translator in the arbitral proceedings.

      2. The party that submits documents and other materials in the language(s) other than the language(s) of the arbitral proceedings shall provide their translation, meanwhile additional requirements may be determined by the Rules of the arbitration or by agreement of the parties.

      3. The arbitration shall be entitled to request the parties to provide translation of documents and other materials into the language(s) of the arbitral proceedings.

      4. Documents and other materials of the arbitration shall be given to the persons involved in the case in the language of the arbitral proceedings.

Article 29. Failure to Submit Documents or to Appear at Hearing

      1. Failure to submit documents and other materials and failure to appear at the arbitration session by one of the parties or his representatives, who have been duly notified of the time and place of session, shall not constitute a bar to the arbitral proceedings on the basis of materials and evidence and to the arbitral awarding, provided that the arbitration recognized the cause of failure to submit documents and other materials or failure to appear at the arbitration session insufficient.

      2. Failure to submit objections to a claim by the respondent shall not be considered as recognition of the claimant's claims.

Article 30. Receipt of Written Communications by Parties

      Unless the parties agreed otherwise:

      1) any written communication is deemed to have been received if it is delivered to the addressee personally, or if it is delivered at his place of business, permanent residence or mailing address; if none of these can be found after making a reasonable inquiry, a written communication is deemed to have been received if it is sent to the addressee's last-known location by registered letter, cable or text message to mobile phone or e-mail address, and also by any other means which provide a record of that communication;

      2) communication is deemed to have been received on the day it is so delivered.

Article 31. Rights of the Parties

      The parties of the arbitral proceedings have the right to:

      1) familiarise with the materials of the case and make copies of these materials;

      2) produce evidences;

      3) submit applications, challenge arbitrators;

      4) put questions to the participants of the proceedings, give oral and written explanations;

      5) produce arguments on all issues arising during the proceedings;

      6) object to the statements and arguments of the other party;

      7) familiarize with protocol of arbitration session and submit written objections to it;

      8) apply to the court for the enforcement of arbitral award in accordance with the legislative acts of the Republic of Kazakhstan;

      9) apply for setting aside of arbitral award subject to the cases determined by the present Law;

      10) end a dispute by reaching an amicable settlement or by agreement of dispute (conflict) settlement through mediation.

Article 32. Participation of Parties in the Arbitration Session

      1. Each party shall be given equal opportunity to state his position and protect his rights and interests.

      2. Unless otherwise agreed by the parties, a closed hearing of arbitral proceedings shall be conducted with the participation of the parties and (or) their representatives.

      The powers of the representatives of the parties shall be executed in compliance with the requirements provided for by the laws of the Republic of Kazakhstan.

      3. The arbitration session (its part) at the request of the parties or at the initiative of the arbitration may be held using video conferencing and other programs and equipment.

      The place of session and making award shall be the place of arbitral proceedings determined in accordance with article 22 of the present Law.

Article 33. Producing and Examination of Evidences

      1. Each party shall prove the circumstances which he refers to as a justification of his claims and objections. The arbitrator is entitled, if he considers the submitted evidence to be insufficient, to offer the parties to submit additional evidence.

      2. The arbitrators are entitled to reject to the evidence submitted by the parties, if this evidence is irrelevant to the dispute or such rejection is justified in view of the time when such evidence was presented.

      3. The arbitrator shall examine all evidence related to the case.

Article 34. Expert Appointed by Arbitration

      1. Unless otherwise agreed by the parties of the arbitral proceedings, the arbitration may:

      1) appoint one or more experts to make for him an expert opinion on specific issues to be determined by the arbitration;

      2) require a party to give the expert any relevant information or to produce, or to provide access to, any relevant documents, goods or other property for his inspection;

      3) deal with other issues relating to the participation of experts in the arbitral proceedings including the allocation of costs for expertise and participation of expert, unless otherwise agreed by the parties.

      2. The expert opinion shall be submitted in writing.

      3. Unless otherwise agreed by the parties, if a party so requests or if the arbitration considers it necessary, the expert shall, after delivery of his written opinion, participate in a hearing where the parties have the opportunity to put questions to him and to provide experts to testify on the points at issue.

Article 35. Terms of Preparation of Case for Arbitral Proceedings, Hearing and Settlement of Disputes

      1. Preparation of cases for arbitral proceedings shall be carried out not later than fifteen calendar days from the date of acceptance of the application, unless otherwise specified by the rules or by the agreement of the parties. As an exception, for cases of extraordinary complexity, this period may be extended up to one month by a reasoned determination of the arbitration.

      2. Disputes shall be considered and resolved in arbitration within two months from the date of completion of preparation for arbitration, unless otherwise is determined by the rules or by agreement of the parties.

      3. The determined periods may be extended by the arbitration with respect to complexity of the dispute.

      4. If an arbitrator unreasonably delays the arbitration, the parties are entitled to apply for his challenge and the appointment of a new arbitrator.

Article 36. Minutes of Arbitration Session

      1. Unless otherwise agreed by the parties, minutes of the arbitration session shall be kept.

      2. Minutes of the arbitration session shall contain all crucial aspects of the proceedings.

      Minutes of the arbitration session shall contain the following data:

      1) year, month, date and place of arbitration session;

      2) start and end of the arbitration session;

      3) name of arbitration considering the case, names and initials of arbitrators, and secretary of the arbitration session;

      4) title of case;

      5) information on appearance of persons involved in the case, representatives, witnesses, experts, specialists, interpreter;

      6) orders of presiding (sole) arbitrator and determinations rendered by the arbitration in the session room;

      7) applications, pleas and explanations of persons involved in the case and their representatives;

      8) testimony of witnesses, oral explanations of expert opinions, explanations of specialists;

      9) information on disclosure of documents, data of examination of material evidence, listening to sound recordings, watching video recordings and cine-materials;

      10) information on the announcement and explanation of content of award and determinations, explanation of procedure and term of appeal;

      11) information on explanation to the persons involved in the case on their right to familiarize with minutes and to submit objections;

      12) date of minutes completion.

      3. The minutes shall be made by secretary of arbitration session who is appointed by the arbitration by agreement of the parties or in accordance with the Rules of the permanent arbitration.

      4. The persons involved in the proceedings and their representatives are entitled to apply for announcement of any part of the minutes, entering any data on circumstances which are deemed to be important for the case in the minutes.

      5. The minutes shall be made and signed not later than three calendar days after the end of the arbitration session.

      For complex cases, the minutes of arbitration session may be made and signed within a longer period, but not later than five calendar days after the end of the arbitration session.

      6. The minutes shall be signed by the presiding arbitrator and the secretary. All changes, amendments, additions shall be noted in the minutes and certified by their signatures.

Article 37. Objections to Minutes

      Persons involved in the arbitral proceedings, and (or) their representatives have the right to familiarize with the minutes of the arbitration session within five calendar days from the date of its preparation and signing, and within five calendar days from the date of acquaintance to submit objections to the minutes in writing, stating mistakes and (or) incompleteness of the committed actions and fixations (recordings) of their results, if not otherwise established by the Rules or by the agreement of the parties.

Article 38. Consideration of Objections to Minutes

      1. Objections to minutes shall be considered by the presiding (sole) arbitrator who signed the minutes, and who, if he agrees with the objections, shall verify that they are true.

      2. If the presiding (sole) arbitrator disagrees with the submitted objections, they shall be considered at the session of the arbitration on notice of the persons involved in the proceedings. Failure of the persons involved to show up at the session shall not constitute a bar to consider objections to the minutes. The consideration of objections shall result in rendering determination by the presiding (sole) arbitrator in respect of verification of correctness or rejection in full or in part. All objections shall be entered in the case file.

      3. Objections to the minutes shall considered within five calendar days from the date of submission.

      4. In the case where the presiding (sole) arbitrator for any objective reasons can not consider the objection to the minutes, they shall be entered in the case file.

Article 39. Court Assistance in Taking Interim Measures and Evidence

      1. During the arbitral proceedings, in the case subject to paragraph 6, article 20 of the present Law, the parties are entitled to apply to the court for securing a claim. It is not incompatible with an arbitration agreement for a court to render a determination on taking interim measure.

      2. An application for securing a claim considered in the arbitration shall be filed by a party with the court at the place of arbitral proceedings or the location of the property in respect of which interim measures may be taken.

      3. Consideration of application for security of a claim by the court, and rendering determination on security of a claim or refusal in taking interim measure shall be conducted in the manner established by the civil procedure legislation of the Republic of Kazakhstan.

      4. A determination of security for a claim, which is considered in the arbitration, may be set aside by the court that rendered this determination at the request of one of the parties. The arbitration resolution regarding rejection of the claim shall be deemed the ground to cancel interim measures by court.

      5. An arbitration or a party with the approval of the arbitration may apply to a court for assistance in taking evidence. Court shall consider this application in accordance with the civil procedure legislation of the Republic of Kazakhstan.

Article 40. Filing Counter-claim and Offsetting Counter-claims

      1. A respondent is entitled to file a claimant with a counter-claim provided that the counter-claim is connected with the claimant's claim, and also under the stipulation that the counter-claim can be considered by the arbitration in accordance with the arbitration agreement.

      2. A counter-claim may be filed during the arbitral proceedings prior to making award by the arbitration, unless otherwise agreed by the parties in respect of period of counter-claim filing.

      3. The counter-claim shall meet the requirements of paragraph 2 of article 23 of the present Law.

      4. A Claimant is entitled to submit defense against a counter-claim in the manner and time provided for by the Rules or the rules of the arbitral proceedings.

      5. If not otherwise agreed by the parties, a respondent is entitled to request offsetting of counter-claim subject to the requirements of civil laws of the Republic of Kazakhstan.

Chapter 5. COSTS RELATED TO RESOLUTION OF DISPUTE
IN ARBITRATION

Article 41. Costs Related to Resolution of Dispute in Arbitration

      1. Costs related to resolution of dispute in arbitration include:

      1) remuneration of arbitrators;

      2) expenses incurred by arbitrators in connection with participation in the arbitral proceedings, including travel costs to the place of dispute resolution, accommodation and meals;

      3) amounts payable to experts and translators;

      4) expenses incurred by arbitrators in connection with the inspection and examination of written and material evidence at the place of their location;

      5) expenses incurred by witnesses;

      6) amounts payable for services of representative by a party in favor of which the arbitral award was made;

      7) expenses for logistical and material support of the arbitral proceeding.

      2. The amount of arbitrators' remuneration in permanent arbitration shall be determined by composition of arbitration in accordance with arbitrators remuneration scale provided for by the Rules of permanent arbitration.

      When a fixed amount of arbitrators' remuneration is not determined in the Rules of permanent arbitration, an arbitration may determine this amount in each particular case of dispute resolution, taking into account the price of claim, dispute complexity, period of time spent by arbitrators for proceedings, and any other relevant circumstances.

      3. For the resolution of a particular dispute in arbitration, the amount of the arbitrators' remuneration shall be determined by agreement of the parties and, in the absence of such agreement, by the arbitration for the resolution of a particular dispute in the manner prescribed for a permanent arbitration.

Article 42. Allocation of Costs Relating to Dispute Arbitral Resolution

      1. The distribution of expenses related to the resolution of a dispute in arbitration between the parties shall be made by arbitration in accordance with the agreement of the parties, and in the absence thereof, in proportion to the satisfied and rejected requirements.

      2. The costs of the representative’s services by the party in favor of which the award was made, as well as other expenses related to the arbitral proceedings, may be referred to the other party by the arbitration resolution, if the claim for reimbursement of the expenses incurred was filed during the arbitral proceedings and was satisfied by arbitration.

      3. The allocation of expenses related to the resolution of a dispute in arbitration shall be stated in the award or determination of arbitration.

      4. If a claimant withdraws his claim, the incurred expenses shall not be subject to reimbursement by a respondent.

Article 43. Securing Expenses Related to Dispute Resolution in Arbitration

      1. Arbitrators are entitled to demand from parties to provide security for expenses incurred by arbitrators in connection with the resolution of disputes in arbitration. Arbitrators are entitled to order separate security for certain claims. If one of the parties does not provide its part of the required security in the time specified by the arbitrators, the other party may stand a full security. If the parties have not provided relevant security, the arbitrators have the right to fully or partially terminate the proceedings.

      Arbitrators have the right to use the provided security during the arbitral proceedings in order to cover expenses. After the arbitrators have resolved the issue of their compensation in the final award, and the award in this part can be enforced, the arbitrators have the right to receive payment at the expense of security, if the parties do not fulfill the obligation of payment in accordance with the award.

      2. An agreement on compensation to arbitrators, in which the parties do not participate jointly, shall be deemed invalid. A party that has provided full security has the right to agree to the use of whole security by the arbitrators to compensate for the work performed.

      3. Arbitrators are not entitles to make an award dependent on the payment of compensation.

Chapter 6. MAKING OF ARBITRAL AWARD AND TERMINATION
OF PROCEEDINGS. SETTING ASIDE THE AWARD

Article 44. Rules Applied to Substance of Dispute     

      1. The arbitration shall decide the dispute in accordance with the rules of law which are chosen by the parties as applicable to the substance of the dispute. Any designation of the law or legal system of a any state shall be construed as directly referring to the substantive law of that State and not to its conflict of laws rules.

      When considering a dispute between individuals and (or) legal entities of the Republic of Kazakhstan, as well as one of the parties of which are state bodies, state enterprises, and also legal entities, fifty or more percent of the voting shares (shares in the authorized capital) of which directly or indirectly belong to the state, the legislation of the Republic of Kazakhstan shall be applied, unless otherwise established by international treaties ratified by the Republic of Kazakhstan.

      2. In the absence of agreement of the parties on the applicable law, the arbitration shall determine the applicable law in accordance with the laws of the Republic of Kazakhstan.

      3. In the absence of rules of law governing a particular relationship, the arbitration shall decide in accordance with the business practices applicable to the transaction.

      4. In the cases where the relations provided for in paragraphs 2 and 3 of this article are not directly regulated, the rules of law governing similar relations shall apply to such relations, and in the absence of such rules, the dispute shall be resolved on the basis of the General Principles and Meaning of the Laws.

Article 45. Making of Award

      1. After examination of circumstances of the case, the arbitration shall make award by a majority of all its members.

      The award shall be announced at the arbitration session. Arbitrator may announce only an operative part of the award. In this case, the justified award shall be sent to the parties within ten calendar days from the date of announcement of the award operative part, unless otherwise specified by the Rules or by agreement of the parties.

      An arbitrator who disagrees with the decision of the majority of members of the arbitration is entitled to state his opinion in dissent, which shall be attached in writing to the award. The parties are entitled to familiarise with the arbitrator's opinion in dissent.

      2. The arbitrator is entitled, if it deems necessary, to postpone the making of award and call the parties for additional session.

      3. The award shall be deemed to have been made at the place of arbitral proceedings and comes into effect on the day when it is signed by the arbitrator(s).

Article 46. Amicable Settlement and Settlement of Dispute through Mediation

      1. If during arbitral proceedings the parties settle the dispute, including through mediation, except as provided for by the laws of the Republic of Kazakhstan on mediation, the arbitration shall terminate the proceedings and, at the request of the parties, record the settlement in the form of an arbitral award on agreed terms.

      2. An arbitral award on agreed terms shall be made in accordance with the provisions of article 45 of the present Law. Such an award has the same effect as any other arbitral award on the merits of the case.

Article 47. Form and Contents of Award

      1. The award shall be made in writing and shall be signed by the arbitrator or arbitrators.

      In arbitral proceedings with panel of arbitrators, in the case when signature of any arbitrator omitted, the reason for any omitted signature shall be stated. The award may be unsigned by an arbitrator who has an opinion in dissent, which shall be attached in writing to the award.

      2. The arbitral award shall state:

      1) date of award making;

      2) place of arbitral proceedings determined in accordance with article 22 of the present Law;

      3) composition of arbitration;

      4) justification of arbitration jurisdiction;

      5) name of the parties to the dispute, names and initials, position of their representatives and their powers;

      6) claims of claimant and objections of respondent;

      7) substance of dispute;

      8) circumstances of case found by the arbitration, the evidence that became the basis for conclusions of the about these circumstances, and the regulatory and legal acts which the arbitration was governed by when making a decision;

      9) conclusions of the arbitrator about satisfaction or refusal in satisfaction of each referred claim;

      10) the amount of costs associated with the dispute resolution in arbitration, the allocation of these costs between the parties, and the term and procedure for the award execution, if necessary.

Article 48. Determination Rendered by Arbitration

      Justified determinations shall be rendered in respect of issues not affecting the substance of the dispute.

Article 49. Termination of Arbitral Proceedings

      The arbitral proceedings are terminated by the determination of the arbitral proceedings on the grounds provided for in paragraph 2 of this article. 

      2. The arbitration shall render a determination on the termination of arbitral proceedings when:

      1) a claimant withdraws his claim, and the withdrawal is accepted by the arbitration, unless a respondent objects thereto due to the fact that he has a legitimate interest in resolving the dispute on the merits;

      2) dispute referred for resolution in the arbitration does not fall within its competence;

      3) there is a court decision and arbitral award entered into force on the dispute between the same parties, on the same subject and on the same grounds;

      4) parties have agreed to terminate the arbitral proceedings;

      5) a legal entity that is a party to the arbitral proceedings has been liquidated;

      6) an individual who is a party to the arbitral proceedings has died or has been declared dead or missing.

Article 50. Correction and Interpretation of Award. Additional Award

      1. Within sixty days after receipt of the arbitral award, unless another period of time has been agreed upon by the parties:

      1) any of the parties, with notice to the other party, may request the arbitration to correct in the award any errors in computation, any clerical or typographical errors or any errors of similar nature;

      2) any of the parties, with notice to the other party, may request the arbitration to give an interpretation of a specific clause or part of the award.

      If the arbitration considers the request to be justified, it shall make the correction or give the interpretation within thirty calendar days of receipt of the request unless otherwise determined in the Rule or by agreement of the parties. Interpretation an arbitral award shall be deemed a binding part of the arbitral award.

      2. The arbitration within sixty calendar days from the date of the arbitral award, unless otherwise provided for by the rules or the agreement of the parties, may, on its own initiative, after proper notification of the parties, correct any errors referred to in paragraph 1 (1) of this article.

      3. Unless otherwise agreed by the parties, any of the parties, with notice to the other party, may request, within sixty days of receipt of the arbitral award, the arbitration to make an additional award as to claims presented in the arbitral proceedings but omitted from the award. If the arbitration considers the request to be justified, it shall make an additional award within days of receipt of the request.

      4. The arbitration may extend, if necessary, the period of time but not more than for sixty calendar days, within which it shall make a correction, interpretation or an additional award under paragraph 1 or 3 hereof.

Article 51. Revision of Arbitral Award in View of Newly Discovered Circumstances

      1. An arbitral award may be reviewed at the request of a party to the arbitration agreement or other person whose rights are affected by the newly discovered circumstances. The grounds to review the award on newly discovered circumstances are the following:

      1) established by a court sentence that has entered into force, patently false testimony of a witness, patently false expert opinion, patently incorrect translation, forged documents or physical evidence that resulted in an unlawful or unjustified decision;

      2) established by a court sentence that has entered into force, criminal actions of the parties, other persons involved in the case, or their representatives or the criminal actions of the arbitrator committed during the proceedings of the case;

      3) recognition of the law or other regulatory legal act, that was applied by the arbitration in making of award, invalid by the Constitutional Council of the Republic of Kazakhstan.

      2. An application for review of the award on newly discovered circumstances shall be submitted to and considered in the arbitration that has made the award within three months from the date of establishment of the circumstances that served as the basis for the review in the manner prescribed by this Law, unless another term is established by the Rules or the agreement of the parties.

      Cases on the newly discovered circumstances shall be considered and resolved by arbitration within the time frame up to one month.

      When it is impossible to conduct of session of arbitration including permanent arbitration, which made the award in the same composition, the application for review of the award in view of newly discovered circumstances shall be considered by a new composition of arbitration to be formed according to procedure established by the present Law.

Article 52. Grounds for Setting Aside of Arbitral Award

      1. A party that applying for setting aside of arbitral award shall provide evidence that:

      1) it contains decision on a dispute that is not stipulated by the arbitration agreement or is not subjected to its terms, or it contains resolutions on matters which are beyond the scope of the arbitration agreement, and also the dispute is not within jurisdiction of the arbitration.

      If the arbitral award on matters covered by the arbitration agreement can be separated from decisions on matters uncovered by such agreement, only that part of arbitral award may be set aside, which contains decision on matters uncovered by the arbitration agreement;

      2) one of the parties to the arbitration agreement was recognized by the court as incapable or the arbitration agreement is invalid under the law to which the parties have subjected it, and in the absence of such indication - under the legislation of the Republic of Kazakhstan;

      3) a party was not duly notified on the appointment of arbitrator or of the arbitral proceedings, or on other reasons that were deemed to be sufficient by the court, and was not able to produce his explanations;

      4) composition of arbitration or procedure of arbitral proceedings were not in accordance with the agreement of the parties;

      5) there is an effective court decision or arbitral award, or determination by court or by arbitration which were made in respect of a dispute between the same parties, on the same subject matter, and on the same grounds, about the termination of proceedings due to the withdrawal of claim by a claimant;

      6) arbitral award does not meeting the requirements for written form and signature provided for in article 47 of the present Law.

      2. An Arbitration award is set aside by court when it is found that:

      1) arbitral award contradicts to the public policy of the Republic of Kazakhstan;

      2) arbitral award is made to the dispute which may not be the subject of arbitral proceedings under the legislation of the Republic of Kazakhstan.

Article 53. Application for Setting Aside of Arbitral Award

      1. Application for setting aside of arbitral award shall be furnished to the court in accordance with the civil procedure laws of the Republic of Kazakhstan.

      2. Application for setting aside of arbitral award may not be furnished upon the expiry of one month from the date of receipt of arbitral award by the applying party, but in the case when the request was referred in accordance with article 51 of the present Law, from the date of making arbitral award at this request.

      3. The court may, at the request of one of the parties, suspend the proceedings for setting aside of the arbitral award for a fixed period of time in order to resume the arbitral proceedings or to take other measures to eliminate the grounds for setting aside of the arbitral award.

      If arbitrators make a new award, the party is entitled, within the time frame determined by the court, without filing a statement of claim, request the setting aside of the award in respect of the renewed arbitral proceedings or changes to the original award.

      4. Court shall render determination on the matter of setting aside of arbitration award. This determination may be appealed or challenged in accordance with the civil procedure laws of the Republic of Kazakhstan.

Chapter 7. RECOGNITION AND ENFORCEMENT
OF AWARDS

Article 54. Recognition and Enforcement of Awards in the Republic of Kazakhstan

      1. An arbitral award shall be recognized as binding and, upon application in writing to the competent court, shall be enforced subject to the provisions of the civil procedure laws of the Republic of Kazakhstan.

      2. If no time frame is determined in the arbitral award, it is subject to immediate enforcement.

Article 55. Compulsory enforcement of arbitral award 

      1. If an arbitral award has not been executed voluntarily within the time frame specified therein, it shall be enforced.

      2. An arbitral award shall be enforced in accordance with the enforcement proceedings rules, which are valid at the time of execution of the award, on the basis of the writ of execution issued by the court.

      3. Application for setting aside of arbitral award shall be furnished to the court in accordance with the civil procedure laws of the Republic of Kazakhstan.

Article 56. Recovery of Expenses Related to Enforcement of Arbitral Award

      Additional costs related to the enforcement of the award shall be borne by the party that failed to execute the award voluntarily.

Article 57. Grounds for Refusing Recognition or Enforcement of Arbitral Award

      1. The court shall refuse to recognise and (or) enforce an arbitral award, irrespective of the country in which it was made, on the following grounds:

      1) a party against which the arbitral award was made furnishes to the court proof that:

      the arbitration agreement is void according to the laws of the state to which the parties have subordinated it and in the absence of such indication, according to the laws of the Republic of Kazakhstan;

      an arbitral award is made on a dispute that is not stipulated by the arbitration agreement or is not subjected to its terms, or it contains resolutions on matters which are beyond the scope of the arbitral agreement, and also the dispute is not within jurisdiction of the arbitration.

      If the arbitral award on matters covered by the arbitration agreement can be separated from decisions on matters uncovered by such agreement, the issuance of an writ of execution to enforce that part of the arbitral award that is covered by the arbitration agreement, may not be refused;

      one of the parties was recognized by the court as incapable or partially capable;

      a party against which the decision was made was not duly notified on the appointment of an arbitrator or arbitral proceedings, or for other reasons that were deemed to be sufficient by the court, failed to present his explanations to the arbitration;

      there is an effective court award or arbitral award, or determination by court or by arbitration which were made in respect of a dispute between the same parties, on the same subject matter, and on the same grounds, about the termination of proceedings due to the withdrawal of claim by a claimant;

      making of award became possible due to committed criminal offense which was legally proved by court decision;

      composition of arbitration or the arbitral proceedings did not meet the requirements of the law;      

      the award has not become obligatory for the parties yet or it was set aside, or its enforcement was suspended by the court of the country in accordance with the law of which the award was made;

      2) the court decides that the recognition and (or) enforcement of this arbitral award contradicts to the public policy of the Republic of Kazakhstan, or that the dispute, to which the award was made, may not be subject of arbitral proceedings in accordance with the present Law.      

      2. Court shall render a determination on the recognition and (or) enforcement of the arbitral award. This determination may be appealed or challenged in accordance with the civil procedure laws of the Republic of Kazakhstan.

Chapter 8. FINAL AND TRANSITIONAL PROVISIONS

Article 58. Responsibility for the Violation of Arbitration Laws of Republic of Kazakhstan

      A violation of the legislation of the Republic of Kazakhstan on arbitration shall entail a liability, established by the laws of the Republic of Kazakhstan.

Article 59. Transitional Provisions

      1. International arbitrators and arbitral tribunals established in the Republic of Kazakhstan prior to the enactment of the present Law shall within two years from the date of entry into force of this Law properly amend their provisions, statutes or rules.

      2. Organizational issues related to the holding of the first constituent meeting for the establishment of the Arbitration Chamber referred to in article 11 hereof shall be to encumbered upon the Ministry of justice of the Republic of Kazakhstan.

Article 60. Procedure for the Enactment of the present Law

      1. This Law shall enter into force upon the expiry of ten calendar days after the day of its first official publication.

      2. Declare to be no longer in force:

      1) Law of the Republic of Kazakhstan dated December 28, 2004 On Arbitration Courts (Vedomosti of Parliament of the Republic of Kazakhstan, 2004, No. 24, Article 151; 2009, No. 9-10, Article 47; 2010, No. 3-4, Article 12; 2012, No. 6, Article 43; No. 14, Article 93; 2013, No. 15, Article 76; 2014, No. 16, Article 90);

      2) The Law of the Republic of Kazakhstan of December 28, 2004 “On International Arbitration” (Vedomosti of the Parliament of the Republic of Kazakhstan, 2004, No. 24, Article 152; 2010, No. 3-4, Article 12; 2013, No. 15, Art. 76; 2014, No. 12, Art. 82).

      President
      of the Republic of Kazakhstan N. NAZARBAYEV


On Arbitration

The Law of the Republic of Kazakhstan No. 488-V ЗРК, dated 8 April 2016.

      To the attention of Users!
      THE CONTENT was created for RCLI convenient use.

      This Law regulates public relations arising in the course of arbitration activity in the territory of the Republic of Kazakhstan, as well as the procedure and conditions for recognition and enforcement of arbitral awards in Kazakhstan.

Chapter 1. GENERAL PROVISIONS

Article 1. Scope of Application

      This Law applies to disputes resulting from civil law relationships between individuals and (or) legal entities, regardless of place of residence or location of subjects of the dispute within or outside the state, resolved in arbitration, unless otherwise established by legislative acts of the Republic of Kazakhstan.

Article 2. Basic Definitions Used in the present Law

      The following basic definitions are used in the present Law:

      1) Public Policy of the Republic of Kazakhstan is the fundamentals of law and order, enshrined in the legislative acts of the Republic of Kazakhstan;

      2) Court is a court of the judicial system of the Republic of Kazakhstan, which is authorized to hear cases on disputes arising from civil law relationships in the first instance, in accordance with the civil procedure laws of the Republic of Kazakhstan;

      3) Arbitration is an arbitration, which is set up specifically for a certain dispute consideration, or a permanent arbitral institution;

      4) Arbitration Agreement is a written agreement by the parties to submit to arbitration any dispute which has arisen or which may arise from civil law relationships;

      5) Rule of Arbitration are the procedure for organizing the activities of permanent arbitral institution and the rules of arbitral proceedings;

      6) Arbitral proceedings mean a process of dispute consideration;

      7) Parties to the arbitral proceedings (hereinafter referred to as 'the Parties') are claimant and respondent between whom the arbitration agreement is concluded;

      8) Arbitral award is a decision passed by the arbitration;

      9) Arbitrator is physical person elected by the parties or appointed in accordance with the present Law and (or) the rules of the relevant arbitration to resolve the dispute;

      10) Business practices are the rules of conduct that have been established and are widely used in civil law contracts, which do not contradict the applicable law, regardless of whether they are recorded in any document.

Article 3. The Legislation of the Republic of Kazakhstan on arbitration

      1. The legislation of the Republic of Kazakhstan on arbitration is based on the Constitution of the Republic of Kazakhstan and consists of the this Law and other regulatory legal acts of the Republic of Kazakhstan.

      2. If an international treaty ratified by the Republic of Kazakhstan establishes rules other than those which are contained in the present Law, the rules of the international treaty shall be applied.

Article 4. Types of Arbitration

      1. Arbitrations in the Republic of Kazakhstan may be established in the form of permanent arbitral institution or arbitration to resolve a certain dispute.

      2. Permanent arbitral institutions may be established by physical and (or) legal entities in accordance with the legislation of the Republic of Kazakhstan.

      Permanent arbitral institution shall approve the rules of arbitration, the register of arbitrators who will undertake activities in this arbitration.

      3. Arbitration for consideration of a certain dispute shall be established by the parties to resolve the dispute and shall perform activities until the dispute is resolved or until the parties decide to submit the dispute to court.

      4. In the Republic of Kazakhstan, arbitrations may not be established by government bodies, state enterprises, and natural monopolies entities, and also entities with a dominant position on a goods and services market, legal entities fifty or more percent of voting shares (shares in the authorized capital stock) of which are owned directly or indirectly by the state, their subsidiaries and affiliates, as well as by second-tier banks, enterprises engaged in certain types of banking operations.

Article 5. Principles of Arbitral Proceedings

      Arbitral proceedings shall be carried out in compliance with the following principles:

      1) autonomy of the will of the parties, which means that the parties, by prior agreement between them, have the right to independently determine the procedure and conditions for the arbitral proceedings of a dispute that has arisen or may arise;

      2) legality, meaning that arbitrators and arbitrations in their decisions shall be guided only by the rules of law applicable by agreement of the parties;

      3) independence, which means that arbitrators and arbitrations are independent in resolving disputes submitted to them and make decisions in conditions that exclude any impact on them;

      4) competitiveness and equality of the parties, which means that the parties to the arbitral proceedings determine their position, methods and means of defending it independently of anyone, and shall enjoy equal rights and bear equal obligations;

      5) justice, which means that arbitrators and arbitrations in resolving disputes submitted to them and parties to the arbitral proceedings shall act in good faith, in compliance with the established requirements, the public moral principles and business ethics rules;

      6) confidentiality, which means that the arbitrators and participants of the arbitral proceedings shall not be entitled to disclose information that became known during the arbitral proceedings without the consent of the parties or their successors and may not be questioned as witnesses about the information that became known to them during the arbitration, except as provided by the laws of the Republic of Kazakhstan;

      7) autonomy of an arbitration agreement, which means that the termination, amendment or invalidation of an arbitration clause does not result in the termination, amendment or invalidation of a main agreement. Accordingly, the termination, amendment or invalidation of a main agreement shall not result in the termination, amendment or invalidation of a arbitration clause.

Article 6. Waiver of Right to Object

      A party that knows that any provision of this Law or any requirement of the arbitration agreement has not been complied with and yet proceeds with the arbitral proceedings without stating any objections to such noncompliance during the period specified by the rules of arbitration, shall be deemed to have waived his right to object.

Article 7. Inadmissibility of Intervention in the Activities of Arbitration

      Arbitrators and arbitrations in resolving disputes submitted to them are independent, make decisions in conditions that exclude any intervention in their activities by state bodies and other institutions except where so provided in the present Law.

Article 8. Submission of Dispute to Arbitration for Settlement

      1. A dispute may be submitted to arbitration provided that there is an arbitration agreement concluded between the parties.

      2. An arbitration agreement may be concluded by the parties in respect of disputes that have arisen or may arise between the parties in relation to a particular civil law relationship.

      3. An arbitration agreement related to the dispute pending in a court may be concluded a decision on the dispute is taken by that court. In this case, the court makes a decision to leave the application without consideration.

      4. An arbitration agreement on the settlement of a dispute under an agreement, the terms of which are determined by one of the parties in the set forms or other standard forms and could be accepted by the other party only by joining the proposed agreement as a whole (the agreement of accession), shall be deemed valid if such agreement is concluded after the emergence of grounds for a claim.

      5. By agreement of the parties, disputes arising from civil law relations between individuals and (or) legal entities may be submitted to the arbitration.

      6. Unless otherwise agreed by the parties, when submitting a dispute to a permanent arbitration, the rule of permanent arbitration shall be deemed to be an integral part of the arbitration agreement.

      7. An arbitration agreement may be terminated by agreement of the parties in the same manner in which it was concluded.

      8. Disputes involving the interests of minors, persons legally recognized incapable or partially capable, relating to rehabilitation and bankruptcy, between entities of natural monopolies and their customers, between state bodies, entities of quasi-state sector are not within the jurisdiction of arbitration.

      9. Arbitration shall not be entitled to consider disputes arising from personal non-property relationships not related to property.

      10. Arbitration shall not be entitled to consider disputes between individuals and (or) legal entities of the Republic of Kazakhstan, on the one part, and state bodies, state enterprises, and legal entities, fifty or more percent of the voting shares (shares in the authorized capital) of which directly or indirectly owned by the state, on the other part, without consent of the authorized body of the relevant industry (in respect of the republican property) or the local executive body (in respect of municipal property).

      State bodies, state enterprises, as well as legal entities, fifty or more percent of the voting shares of which (shares in the authorized capital) are directly or indirectly owned by the state, intending to conclude an arbitration agreement must send a request to the authorized body of the relevant industry (in respect of republican property) or local executive body (in respect of municipal property) to give consent to conclude such agreement indicating projected costs of arbitral proceedings. The authorized body of the relevant industry or local executive body is shall within fifteen calendar days to consider the request and send a written notice of consent or a reasoned refusal. When considering the request, the authorized body of the relevant industry or local executive body shall take into consideration the economic security and interests of the state.

Article 9. Form and Content of Arbitration Agreement

      1. An arbitration agreement shall be made in writing. An arbitration agreement is considered to be concluded in writing if it is made in the form of an arbitration clause in a document that is signed by the parties, or concluded by means of exchanging letters, telegrams, telephone messages, faxes, electronic documents or other documents that define the entities and the content of their will.

      2. An arbitration agreement is also considered concluded in writing if it is concluded by the exchange of a statement of claim and a statement of defense in which one of the parties states the availability of an agreement and the other one does not object to it.

      3. A reference in a contract to a document containing a term for the submission of a dispute to arbitration shall be deemed an arbitration agreement provided that the contract is in writing and that reference is such as to make the arbitration agreement a part of the contract.

      4. The arbitration agreement shall contain:

      1) intention of the parties to submit the dispute to arbitration;

      2) indication of the subject matter to be considered by the arbitration;

      3) indication of particular arbitration;

      4) consent of the authorized body of the relevant industry or local executive body in the case provided for in paragraph 10, article 8 hereof.

      Additional terms of the arbitration agreement may be determined by agreement of the parties.

      5. Excluded by the Law of the Republic of Kazakhstan dated February 27, 2017 No. 49-VI (shall be enforced upon the expiry of ten calendar days after the date of its first official publication).
      Footnote. Article 9 as amended by the Law of the Republic of Kazakhstan No. 49-VI dated February 27, 2017 (shall be brought to effect upon the expiry of ten calendar days after its first official publication).

Article 10. Arbitration Agreement and Substantive Claim Before Court

      A court in which an action is brought in a matter which is the subject of an arbitral proceedings shall, if any of the parties so requests, not later than when submitting his first statement on the substance of the dispute, stay its proceedings and refer the parties to arbitration unless it finds that the arbitration agreement is null and void, inoperative or incapable of being performed.

Chapter 2. ARBITRATION CHAMBER OF KAZAKHSTAN

Article 11. Establishment, Reorganization and Liquidation of the Arbitration Chamber of Kazakhstan

      1. The Arbitration Chamber of Kazakhstan (hereinafter referred to as the Arbitration Chamber) is a non-profit organization representing an association of permanent arbitrations, arbitrators, established in order to create favorable conditions for the implementation, promotion, and support of the activities of arbitrations in the Republic of Kazakhstan in the manner established by the legislative acts of the Republic of Kazakhstan.

      2. Reorganization and liquidation of the Arbitration Chamber shall be carried out in accordance with the laws of the Republic of Kazakhstan.

Article 12. Authorities of the Arbitration Chamber

      1. The Authorities of the Arbitration Chamber are as follows:

      1) representation and protection of interests of arbitrators and permanent arbitrations in the state bodies of the Republic of Kazakhstan, foreign and international organizations;

      2) monitoring of the state of arbitration activity in the Republic of Kazakhstan and keeping case files in permanent arbitrations;

      3) training and professional development of arbitrators;

      4) maintenance of register of arbitrators of the permanent arbitrations, as well as arbitrators who are members of the Arbitration Chamber;

      5) approval of rules of case files keeping in permanent arbitrations;

      6) appointment of arbitrators (arbitrator) from among the persons included in the registers of the Arbitration Chamber or permanent arbitration, in the cases provided for in paragraph 6, article 14 hereof;

      7) decision making on the termination of authorities of arbitrator appointed to resolve a particular dispute;

      8) other authorities provided for by the constituent documents of the Arbitration Chamber in accordance with the laws of the Republic of Kazakhstan.

      2. The register of the Arbitration Chamber is a database of arbitrators of permanent arbitrations, as well as arbitrators who are members of the Arbitration Chamber.

      The register of arbitrators shall be placed on the website of the Arbitration Chamber in the Kazakh and Russian languages.

      3. When monitoring the custody of cases by permanent arbitrations, the Arbitration Chamber is subject to the principle of confidentiality.

      4. The governing bodies of the Arbitration chamber are as follows:

      1) the highest governing body is the General Meeting of members;

      2) permanent collegial governing body is the Board;

      3) sole executive body is Chairman of the Board;

      4) internal control body for financial and economic activities of the Arbitration Chamber is Audit Commission (Auditor).

Chapter 3. COMPOSITION OF ARBITRATION

Article 13. Arbitrators

      1. An individual to be selected (appointed) as an Arbitrator shall not be directly or indirectly interested in the outcome of a case, be independent from the parties, agree to perform duties of arbitrator, be at least thirty years old, have higher education and work experience in the specialty of at least five years.

      A sole arbitrator shall have higher education in Law. In the case of collegial dispute resolution, the Chairman of the Arbitration shall have higher education in Law.

      By agreement of the parties, a citizen of the Republic of Kazakhstan, a foreigner or a stateless person may be elected as an arbitrator.

      2. Additional requirements to the candidates to arbitrator may be agreed by the parties directly or determined by the rules of permanent arbitration.

      3. A person may not be appointed as an arbitrator if s/he:

      1) has been elected or appointed as a judge pursuant to the procedure established by the law of the Republic of Kazakhstan;

      2) has been acknowledged to be incapable or partially capable by a court in accordance with the procedure established by the law of the Republic of Kazakhstan;

      3) has an unexpunged or unspent conviction, or being charged with a criminal offence;

      4) is a public servant, a Deputy of the Parliament of the Republic of Kazakhstan, a Deputy of the Maslikhat operating on a permanent or full-time basis, paid from the state budget, and a military serviceman.

Article 14. Composition of Arbitration

      1. The composition of the arbitration may be sole or collegial.

      The composition of the arbitration shall be formed by election (appointment) of arbitrators (arbitrator) by agreement of the parties.

      2. The parties are free to determine the number of arbitrators, the number must be odd.

      Unless otherwise agreed by the parties, three arbitrators shall be elected (appointed) to resolve a dispute in arbitration.

      3. In permanent arbitration, the composition of arbitration shall be formed in accordance with the procedure established by the rules of permanent arbitration and the arbitration agreement.

      4. For a particular dispute resolution, the composition of arbitration shall be formed in accordance with procedure agreed by the parties.

      5. When composing arbitration consisting of three arbitrators, unless otherwise agreed by the parties or the dispute is not arbitrated by a permanent arbitration, each party shall appoint one arbitrator, and the two arbitrators thus appointed shall elect the third presiding arbitrator.

      6. In the absence of consent between the parties, the head of the permanent arbitration and, if the dispute is considered by the arbitration formed to resolve a particular dispute, the Arbitration Chamber may, within thirty calendar days, at the request of one of the parties to the dispute, appoint arbitrators (an arbitrator) from the register of arbitrators of the Arbitration Chamber or permanent arbitration in cases where:

      1) the party has not appointed an arbitrator within thirty calendar days from the date of receipt of the request from the other party, unless other term is established by the rules or by agreement of the parties;

      2) two arbitrators within thirty calendar days after their appointment, unless other term is established by the rules or by agreement of the parties, have not agreed on the choice of the third arbitrator;

      3) the parties have not agreed on the choice of a sole arbitrator.

      The decision of the head of the permanent arbitration in respect of arbitrators appointment shall not be subject to cancellation.

Article 15. Register of Arbitrators

      1. The register of arbitrators is a database containing information about the arbitrators operating in the territory of the Republic of Kazakhstan.

      The register of arbitrators shall contain arbitrator's last name, first name and patronymic (if indicated in the identification document), work experience, place of work, position and period of work, academic degree and academic title (if available), number of cases arbitrated.

      2. Information about the arbitrators shall be provided at the request of interested parties.

      3. The rules for maintaining and using the register of arbitrators shall be approved by the Arbitration Chamber.

Article 16. Conditions of Permanent Arbitration Activity

      1. Permanent arbitration shall maintain a register of its arbitrators. Information about a permanent arbitration including its legal address, regulations, and register of arbitrators shall be posted in the media including in Internet resources for free familiarization of individuals and legal entities. Information about arbitral awards shall be posted with the consent of the parties to the dispute.

      2. Permanent arbitration shall store files of arbitrated disputes in the manner specified in its Rule. Control over the storage of case-files by permanent arbitration shall be carried out by the Arbitration Chamber.

Article 17. Challenge of Arbitrator

      1. Parties may challenge an arbitrator in the case if s/he does not meet the requirements set forth in article 13 herein.

      2. The following circumstances causing doubts in his/her impartiality and (or) competence are also grounds for challenging an arbitrator, if:

      1) a person closely related to the arbitrator is a party to the dispute or the arbitrator can otherwise expect a significant benefit or damage for him/herself depending on the outcome of the dispute resolution;

      2) an arbitrator or a person closely related to him/her is a chief of a legal entity, its branch or representative office that is a party to the dispute, or otherwise represents a party or another person who can expect significant benefit or damage depending on the outcome of the dispute;

      3) an arbitrator acted as an expert or otherwise has determined his position in the dispute in advance or assisted a party to the dispute in preparing or presenting his/her position;

      4) an arbitrator has received or demanded remuneration in connection with the hearing of case, not provided for by the present Law;

      5) an arbitrator unreasonably fails to comply with the terms of the arbitral proceedings.

      For the purposes of this Law, a closely related person shall be deemed a person who is a spouse of arbitrator or his / her close relative, a marriage-relative or an employee of a permanent arbitration, a person having employment or other contractual relationship with the arbitrator, or has other liaisons which evidence his/her dependence on the arbitrator.

      3. When a person is approached in connection with his possible election (appointment) as an arbitrator, s/he shall disclose any circumstances which may become grounds for his/her challenge in accordance with article 13 hereof. In the event such circumstances have arisen during the arbitral proceedings, an arbitrator shall immediately notify the parties and withdraw from his/her office.

      4. A party may challenge an arbitrator elected by him in accordance with this article only if the party became aware of circumstances giving rise to the challenge after the composition of arbitration for that case has been formed.

      5. In a permanent arbitration, the procedure for challenging an arbitrator may be determined by its Rule.

      6. In an arbitration for particular dispute resolution, the procedure for challenging an arbitrator may be agreed by the parties.

      7. If the procedure for challenging an arbitrator has not been agreed by the parties or determined by the Rules of the permanent arbitration, a written justified statement of arbitrator challenge shall be submitted by a party to the arbitration within thirty calendar days after the party has become aware of circumstances becoming the grounds for challenge.

      If a challenged arbitrator denies the challenge or one of the parties disagrees with the challenge of an arbitrator, arbitrators of the arbitration shall decide on the challenge within ten calendar days after receipt of the written justified statement from a party.

      The challenge of a sole arbitrator shall be decided by that arbitrator.

      If a sole arbitrator denies the challenge by one or both parties or one of the parties does not agree with the challenge of an arbitrator, the parties shall decide on the termination of the arbitral proceedings by that composition of arbitration.

Article 18. Termination of Authority of Arbitrator

      1. The Arbitrator's authorities can be terminated by agreement of the parties on the grounds provided for in article 17 herein, and also in the case of non-fulfillment of his functions during a period established for considering a dispute or inability to fulfill obligations due to illness, death or abandonment of his authority to deal with a dispute.

      In the case of disagreement regarding any of the grounds specified in the first part of this paragraph, any party may apply to the head of the permanent arbitration for making decision on the termination of an arbitrator’s authority.

      The decision on the termination of an arbitrator's authority shall not be subject to cancellation.

      2. In the event of termination of the authority of the composition of the arbitration, the proceedings on the pending dispute shall be suspended until the election (appointment) of another composition of the arbitration.

      3. Authority of an arbitrator shall terminate upon the entry into force of the arbitral award to a particular case or if the parties have agreed on such termination. In the cases provided for in articles 50 and 51 hereof, the authorities of an arbitrator shall be renewed and then terminated after taking the proceedings stipulated in the above indicated articles.

Article 19. Substitution of Arbitrator

      Where the mandate of an arbitrator terminates, a substitute arbitrator shall be elected (appointed) according to the rules that were applicable to the election (appointment) of the arbitrator being replaced.

      An elected (appointed) substitute arbitrator shall be entitled to order rehearing.

Chapter 4. CONDUCT OF ARBITRAL PROCEEDINGS

Article 20. Power of Arbitration to Rule on its Jurisdiction and Order Interim Measures

      1. The Arbitration shall independently decide with respect to the existence or lack of his authority (jurisdiction) to arbitrate a dispute referred to it, including in the cases where one of the parties objects to arbitral proceedings due to the invalidity of the arbitration agreement. In view of this an arbitration clause forming part of the contract, shall be interpreted as an agreement independent of the other terms of the contract. A decision by an arbitration on the invalidity of the contract shall not entail the invalidity of the arbitration clause.

      2. A party has the right to raise a plea that the arbitration does not have jurisdiction to arbitrate a referred dispute not later than the submission of the statement of his first statement on the substance of the dispute.

      3. A party has the right to raise a plea that the arbitration exceeded its authority if the matter raised during the arbitral proceedings appeared to be beyond the scope of the arbitration agreement or cannot be the subject of the arbitration in accordance with the rules of applicable law or the rules of arbitral proceedings.

      4. An arbitration shall within ten calendar days to consider a plea in accordance with paragraphs 2 and 3 of this article. Determination shall be rendered based on the results of the plea consideration.

      5. When considering the issue on its jurisdiction, if an arbitration renders a determination that the arbitration does not have jurisdiction to consider a dispute, the arbitration may not consider dispute on the merit.

      6. Unless otherwise agreed by the parties, the arbitration may, at the request of any party, order any party to take such interim measures of protection as the arbitration may consider necessary in respect of the subject-matter of the dispute.

Article 21. Determination of Rules of Arbitral Proceedings

      1. A permanent arbitration shall conduct arbitral proceedings in accordance with its Rule and arbitration agreement.

      2. The arbitral proceedings in respect of a particular dispute shall be conducted in accordance with the agreed by the parties rules.

      The rules of arbitration not determined by the rules of permanent arbitration, by the provisions of the present Law, and not agreed by the parties shall be determined by the arbitration.

      3. Powers conferred upon the composition of the arbitration include the power to determine the admissibility, relevance, materiality and weight of any evidence.

Article 22. Place of Arbitral Proceedings

      The parties are free to agree on the place of arbitral proceedings except in cases where a dispute is referred to permanent arbitration. Failing such agreement, the place of arbitration shall be determined by the arbitration having regard to the circumstances of the case, including the convenience of the parties.

Article 23. Statement of Claim

      1. A claimant shall state claims in his statement of claim to be submitted in writing to the arbitration. A copy of the statement of claim shall be sent the respondent.

      2. The statement of claim shall state:

      1) date of filing the claim;

      2) names of the parties, postal addresses and bank details;

      3) justification for applying to arbitration;

      4) demand of claimant;

      5) circumstances supporting a claimant's demand;

      6) evidences supporting the claim;

      7) sum in dispute, if statement of claim to be evaluated;

      8) a list of documents and other materials enclosed to the statement of claim.

      The statement of claim shall be signed by claimant or his representative appended by an original power of attorney or other document certifying the authority of the representative.

      3. Additional requirements to the content of the statement of claim may be determined in the Rule of Arbitration.

Article 24. Statement of Defense to the Statement of Claim

      1. A respondent has the right to submit his defense in respect of the statement of claim with objection to the claim to the claimant and the arbitration. A response to the statement of claim shall be submitted to the claimant and the arbitration in the manner and time provided for by the rules of arbitration or by agreement of the parties.

      If the deadline for submitting defense to the statement of claim is not determined in the Rule of Arbitration, the defense shall be submitted not later than ten calendar days before the first session of the arbitration.

      2. A party has the right to amend and (or) supplement his claims and (or) objections to the claim during the arbitral proceedings.

Article 25. Instituting Arbitral Proceedings

      1. An Arbitration having accepted the statement of claim, within ten calendar days, unless otherwise established by the rules or by agreement of the parties, shall render a determination to initiate arbitral proceedings in accordance with the Rules of Arbitration or the rules agreed by the parties, communicate to the parties the place of its consideration, and offer an respondent to submit a written defense to the statement of claim.

      2. Failure of a respondent to communicate his statement of defense shall not constitute a bar to the proceedings.

Article 26. Commencement of Arbitral Proceedings

      1. Unless otherwise agreed by the parties, the arbitration shall decide whether to hold oral hearings for the presentation of evidence or for oral argument, or whether the proceedings shall be conducted on the basis of documents and other materials. However, unless the parties have agreed that no hearings shall be held, the arbitration shall hold such hearings at an appropriate stage of the proceedings, if so requested by any party.

      2. Unless otherwise agreed by the parties, the arbitral proceedings in respect of a particular dispute shall commence on the date on which a request for that dispute to be referred to arbitration is received by the respondent.

      3. An arbitrator shall give notice of the time and place of arbitration session in advance and in the right manner, unless otherwise agreed by the parties.

      4) Unless otherwise agreed by the parties, copies of all documents, materials and other information submitted to the arbitration by one of the parties, shall be supplied by the arbitration to the other party within seven calendar days from the date of receipt by the arbitration. Expert reports shall be communicated by the arbitration to the parties before the beginning of the arbitral proceedings.

Article 27. Dismissal of Statement of Claim

      1. An arbitration shall dismiss a statement of claim if:

      1) there is no arbitration agreement between the parties;

      2) a claim was submitted to the arbitration which is not provided for in the arbitration agreement;

      3) subject matter of the claim is beyond the scope of the arbitration agreement;

      4) the interests of third parties who are not parties to the arbitration agreement are affected;

      5) a statement of claim is signed by a person who has no authority to sign it;

      6) a claimant submitted an application for disallowing the statement of claim;      

      7) in the proceedings of the same or another arbitration there is a case in a dispute between the same parties, on the same subject-matter and on the same grounds.

      2. When dismissing a statement of claim, the arbitration shall render a justified determination.

      3. The disallowing of statement allows the claimant to refile the claim to the same respondent, on the same subject-matter and grounds to the arbitration while meeting the requirements determined by the legislative acts of the Republic of Kazakhstan, the Rules of the relevant permanent arbitration or by the agreement of the parties.

Article 28. Language of Arbitral Proceedings

      1. The parties are free to agree on the language or languages to be used in the arbitral proceedings. Failing such agreement, the arbitration shall determine the language of the proceedings having regard to the language of the statement of claim referred to the arbitration or the language of the arbitration agreement.

      If during the preparation for case proceeding in the arbitration, it appeared that claimant does not speak the language, in which his representative has filed the statement of claim, then upon a written application by the claimant the arbitration shall render a determination to change the language of legal proceedings.     

      The participants of the proceeding not speaking the language on which the arbitral proceeding is conducted shall be entitled to familiarise with the materials of the case and participate in the arbitral proceedings with a translator, and also to address the arbitration in his native language. The party shall on his own engage a translator in the arbitral proceedings.

      2. The party that submits documents and other materials in the language(s) other than the language(s) of the arbitral proceedings shall provide their translation, meanwhile additional requirements may be determined by the Rules of the arbitration or by agreement of the parties.

      3. The arbitration shall be entitled to request the parties to provide translation of documents and other materials into the language(s) of the arbitral proceedings.

      4. Documents and other materials of the arbitration shall be given to the persons involved in the case in the language of the arbitral proceedings.

Article 29. Failure to Submit Documents or to Appear at Hearing

      1. Failure to submit documents and other materials and failure to appear at the arbitration session by one of the parties or his representatives, who have been duly notified of the time and place of session, shall not constitute a bar to the arbitral proceedings on the basis of materials and evidence and to the arbitral awarding, provided that the arbitration recognized the cause of failure to submit documents and other materials or failure to appear at the arbitration session insufficient.

      2. Failure to submit objections to a claim by the respondent shall not be considered as recognition of the claimant's claims.

Article 30. Receipt of Written Communications by Parties

      Unless the parties agreed otherwise:

      1) any written communication is deemed to have been received if it is delivered to the addressee personally, or if it is delivered at his place of business, permanent residence or mailing address; if none of these can be found after making a reasonable inquiry, a written communication is deemed to have been received if it is sent to the addressee's last-known location by registered letter, cable or text message to mobile phone or e-mail address, and also by any other means which provide a record of that communication;

      2) communication is deemed to have been received on the day it is so delivered.

Article 31. Rights of the Parties

      The parties of the arbitral proceedings have the right to:

      1) familiarise with the materials of the case and make copies of these materials;

      2) produce evidences;

      3) submit applications, challenge arbitrators;

      4) put questions to the participants of the proceedings, give oral and written explanations;

      5) produce arguments on all issues arising during the proceedings;

      6) object to the statements and arguments of the other party;

      7) familiarize with protocol of arbitration session and submit written objections to it;

      8) apply to the court for the enforcement of arbitral award in accordance with the legislative acts of the Republic of Kazakhstan;

      9) apply for setting aside of arbitral award subject to the cases determined by the present Law;

      10) end a dispute by reaching an amicable settlement or by agreement of dispute (conflict) settlement through mediation.

Article 32. Participation of Parties in the Arbitration Session

      1. Each party shall be given equal opportunity to state his position and protect his rights and interests.

      2. Unless otherwise agreed by the parties, a closed hearing of arbitral proceedings shall be conducted with the participation of the parties and (or) their representatives.

      The powers of the representatives of the parties shall be executed in compliance with the requirements provided for by the laws of the Republic of Kazakhstan.

      3. The arbitration session (its part) at the request of the parties or at the initiative of the arbitration may be held using video conferencing and other programs and equipment.

      The place of session and making award shall be the place of arbitral proceedings determined in accordance with article 22 of the present Law.

Article 33. Producing and Examination of Evidences

      1. Each party shall prove the circumstances which he refers to as a justification of his claims and objections. The arbitrator is entitled, if he considers the submitted evidence to be insufficient, to offer the parties to submit additional evidence.

      2. The arbitrators are entitled to reject to the evidence submitted by the parties, if this evidence is irrelevant to the dispute or such rejection is justified in view of the time when such evidence was presented.

      3. The arbitrator shall examine all evidence related to the case.

Article 34. Expert Appointed by Arbitration

      1. Unless otherwise agreed by the parties of the arbitral proceedings, the arbitration may:

      1) appoint one or more experts to make for him an expert opinion on specific issues to be determined by the arbitration;

      2) require a party to give the expert any relevant information or to produce, or to provide access to, any relevant documents, goods or other property for his inspection;

      3) deal with other issues relating to the participation of experts in the arbitral proceedings including the allocation of costs for expertise and participation of expert, unless otherwise agreed by the parties.

      2. The expert opinion shall be submitted in writing.

      3. Unless otherwise agreed by the parties, if a party so requests or if the arbitration considers it necessary, the expert shall, after delivery of his written opinion, participate in a hearing where the parties have the opportunity to put questions to him and to provide experts to testify on the points at issue.

Article 35. Terms of Preparation of Case for Arbitral Proceedings, Hearing and Settlement of Disputes

      1. Preparation of cases for arbitral proceedings shall be carried out not later than fifteen calendar days from the date of acceptance of the application, unless otherwise specified by the rules or by the agreement of the parties. As an exception, for cases of extraordinary complexity, this period may be extended up to one month by a reasoned determination of the arbitration.

      2. Disputes shall be considered and resolved in arbitration within two months from the date of completion of preparation for arbitration, unless otherwise is determined by the rules or by agreement of the parties.

      3. The determined periods may be extended by the arbitration with respect to complexity of the dispute.

      4. If an arbitrator unreasonably delays the arbitration, the parties are entitled to apply for his challenge and the appointment of a new arbitrator.

Article 36. Minutes of Arbitration Session

      1. Unless otherwise agreed by the parties, minutes of the arbitration session shall be kept.

      2. Minutes of the arbitration session shall contain all crucial aspects of the proceedings.

      Minutes of the arbitration session shall contain the following data:

      1) year, month, date and place of arbitration session;

      2) start and end of the arbitration session;

      3) name of arbitration considering the case, names and initials of arbitrators, and secretary of the arbitration session;

      4) title of case;

      5) information on appearance of persons involved in the case, representatives, witnesses, experts, specialists, interpreter;

      6) orders of presiding (sole) arbitrator and determinations rendered by the arbitration in the session room;

      7) applications, pleas and explanations of persons involved in the case and their representatives;

      8) testimony of witnesses, oral explanations of expert opinions, explanations of specialists;

      9) information on disclosure of documents, data of examination of material evidence, listening to sound recordings, watching video recordings and cine-materials;

      10) information on the announcement and explanation of content of award and determinations, explanation of procedure and term of appeal;

      11) information on explanation to the persons involved in the case on their right to familiarize with minutes and to submit objections;

      12) date of minutes completion.

      3. The minutes shall be made by secretary of arbitration session who is appointed by the arbitration by agreement of the parties or in accordance with the Rules of the permanent arbitration.

      4. The persons involved in the proceedings and their representatives are entitled to apply for announcement of any part of the minutes, entering any data on circumstances which are deemed to be important for the case in the minutes.

      5. The minutes shall be made and signed not later than three calendar days after the end of the arbitration session.

      For complex cases, the minutes of arbitration session may be made and signed within a longer period, but not later than five calendar days after the end of the arbitration session.

      6. The minutes shall be signed by the presiding arbitrator and the secretary. All changes, amendments, additions shall be noted in the minutes and certified by their signatures.

Article 37. Objections to Minutes

      Persons involved in the arbitral proceedings, and (or) their representatives have the right to familiarize with the minutes of the arbitration session within five calendar days from the date of its preparation and signing, and within five calendar days from the date of acquaintance to submit objections to the minutes in writing, stating mistakes and (or) incompleteness of the committed actions and fixations (recordings) of their results, if not otherwise established by the Rules or by the agreement of the parties.

Article 38. Consideration of Objections to Minutes

      1. Objections to minutes shall be considered by the presiding (sole) arbitrator who signed the minutes, and who, if he agrees with the objections, shall verify that they are true.

      2. If the presiding (sole) arbitrator disagrees with the submitted objections, they shall be considered at the session of the arbitration on notice of the persons involved in the proceedings. Failure of the persons involved to show up at the session shall not constitute a bar to consider objections to the minutes. The consideration of objections shall result in rendering determination by the presiding (sole) arbitrator in respect of verification of correctness or rejection in full or in part. All objections shall be entered in the case file.

      3. Objections to the minutes shall considered within five calendar days from the date of submission.

      4. In the case where the presiding (sole) arbitrator for any objective reasons can not consider the objection to the minutes, they shall be entered in the case file.

Article 39. Court Assistance in Taking Interim Measures and Evidence

      1. During the arbitral proceedings, in the case subject to paragraph 6, article 20 of the present Law, the parties are entitled to apply to the court for securing a claim. It is not incompatible with an arbitration agreement for a court to render a determination on taking interim measure.

      2. An application for securing a claim considered in the arbitration shall be filed by a party with the court at the place of arbitral proceedings or the location of the property in respect of which interim measures may be taken.

      3. Consideration of application for security of a claim by the court, and rendering determination on security of a claim or refusal in taking interim measure shall be conducted in the manner established by the civil procedure legislation of the Republic of Kazakhstan.

      4. A determination of security for a claim, which is considered in the arbitration, may be set aside by the court that rendered this determination at the request of one of the parties. The arbitration resolution regarding rejection of the claim shall be deemed the ground to cancel interim measures by court.

      5. An arbitration or a party with the approval of the arbitration may apply to a court for assistance in taking evidence. Court shall consider this application in accordance with the civil procedure legislation of the Republic of Kazakhstan.

Article 40. Filing Counter-claim and Offsetting Counter-claims

      1. A respondent is entitled to file a claimant with a counter-claim provided that the counter-claim is connected with the claimant's claim, and also under the stipulation that the counter-claim can be considered by the arbitration in accordance with the arbitration agreement.

      2. A counter-claim may be filed during the arbitral proceedings prior to making award by the arbitration, unless otherwise agreed by the parties in respect of period of counter-claim filing.

      3. The counter-claim shall meet the requirements of paragraph 2 of article 23 of the present Law.

      4. A Claimant is entitled to submit defense against a counter-claim in the manner and time provided for by the Rules or the rules of the arbitral proceedings.

      5. If not otherwise agreed by the parties, a respondent is entitled to request offsetting of counter-claim subject to the requirements of civil laws of the Republic of Kazakhstan.

Chapter 5. COSTS RELATED TO RESOLUTION OF DISPUTE
IN ARBITRATION

Article 41. Costs Related to Resolution of Dispute in Arbitration

      1. Costs related to resolution of dispute in arbitration include:

      1) remuneration of arbitrators;

      2) expenses incurred by arbitrators in connection with participation in the arbitral proceedings, including travel costs to the place of dispute resolution, accommodation and meals;

      3) amounts payable to experts and translators;

      4) expenses incurred by arbitrators in connection with the inspection and examination of written and material evidence at the place of their location;

      5) expenses incurred by witnesses;

      6) amounts payable for services of representative by a party in favor of which the arbitral award was made;

      7) expenses for logistical and material support of the arbitral proceeding.

      2. The amount of arbitrators' remuneration in permanent arbitration shall be determined by composition of arbitration in accordance with arbitrators remuneration scale provided for by the Rules of permanent arbitration.

      When a fixed amount of arbitrators' remuneration is not determined in the Rules of permanent arbitration, an arbitration may determine this amount in each particular case of dispute resolution, taking into account the price of claim, dispute complexity, period of time spent by arbitrators for proceedings, and any other relevant circumstances.

      3. For the resolution of a particular dispute in arbitration, the amount of the arbitrators' remuneration shall be determined by agreement of the parties and, in the absence of such agreement, by the arbitration for the resolution of a particular dispute in the manner prescribed for a permanent arbitration.

Article 42. Allocation of Costs Relating to Dispute Arbitral Resolution

      1. The distribution of expenses related to the resolution of a dispute in arbitration between the parties shall be made by arbitration in accordance with the agreement of the parties, and in the absence thereof, in proportion to the satisfied and rejected requirements.

      2. The costs of the representative’s services by the party in favor of which the award was made, as well as other expenses related to the arbitral proceedings, may be referred to the other party by the arbitration resolution, if the claim for reimbursement of the expenses incurred was filed during the arbitral proceedings and was satisfied by arbitration.

      3. The allocation of expenses related to the resolution of a dispute in arbitration shall be stated in the award or determination of arbitration.

      4. If a claimant withdraws his claim, the incurred expenses shall not be subject to reimbursement by a respondent.

Article 43. Securing Expenses Related to Dispute Resolution in Arbitration

      1. Arbitrators are entitled to demand from parties to provide security for expenses incurred by arbitrators in connection with the resolution of disputes in arbitration. Arbitrators are entitled to order separate security for certain claims. If one of the parties does not provide its part of the required security in the time specified by the arbitrators, the other party may stand a full security. If the parties have not provided relevant security, the arbitrators have the right to fully or partially terminate the proceedings.

      Arbitrators have the right to use the provided security during the arbitral proceedings in order to cover expenses. After the arbitrators have resolved the issue of their compensation in the final award, and the award in this part can be enforced, the arbitrators have the right to receive payment at the expense of security, if the parties do not fulfill the obligation of payment in accordance with the award.

      2. An agreement on compensation to arbitrators, in which the parties do not participate jointly, shall be deemed invalid. A party that has provided full security has the right to agree to the use of whole security by the arbitrators to compensate for the work performed.

      3. Arbitrators are not entitles to make an award dependent on the payment of compensation.

Chapter 6. MAKING OF ARBITRAL AWARD AND TERMINATION
OF PROCEEDINGS. SETTING ASIDE THE AWARD

Article 44. Rules Applied to Substance of Dispute     

      1. The arbitration shall decide the dispute in accordance with the rules of law which are chosen by the parties as applicable to the substance of the dispute. Any designation of the law or legal system of a any state shall be construed as directly referring to the substantive law of that State and not to its conflict of laws rules.

      When considering a dispute between individuals and (or) legal entities of the Republic of Kazakhstan, as well as one of the parties of which are state bodies, state enterprises, and also legal entities, fifty or more percent of the voting shares (shares in the authorized capital) of which directly or indirectly belong to the state, the legislation of the Republic of Kazakhstan shall be applied, unless otherwise established by international treaties ratified by the Republic of Kazakhstan.

      2. In the absence of agreement of the parties on the applicable law, the arbitration shall determine the applicable law in accordance with the laws of the Republic of Kazakhstan.

      3. In the absence of rules of law governing a particular relationship, the arbitration shall decide in accordance with the business practices applicable to the transaction.

      4. In the cases where the relations provided for in paragraphs 2 and 3 of this article are not directly regulated, the rules of law governing similar relations shall apply to such relations, and in the absence of such rules, the dispute shall be resolved on the basis of the General Principles and Meaning of the Laws.

Article 45. Making of Award

      1. After examination of circumstances of the case, the arbitration shall make award by a majority of all its members.

      The award shall be announced at the arbitration session. Arbitrator may announce only an operative part of the award. In this case, the justified award shall be sent to the parties within ten calendar days from the date of announcement of the award operative part, unless otherwise specified by the Rules or by agreement of the parties.

      An arbitrator who disagrees with the decision of the majority of members of the arbitration is entitled to state his opinion in dissent, which shall be attached in writing to the award. The parties are entitled to familiarise with the arbitrator's opinion in dissent.

      2. The arbitrator is entitled, if it deems necessary, to postpone the making of award and call the parties for additional session.

      3. The award shall be deemed to have been made at the place of arbitral proceedings and comes into effect on the day when it is signed by the arbitrator(s).

Article 46. Amicable Settlement and Settlement of Dispute through Mediation

      1. If during arbitral proceedings the parties settle the dispute, including through mediation, except as provided for by the laws of the Republic of Kazakhstan on mediation, the arbitration shall terminate the proceedings and, at the request of the parties, record the settlement in the form of an arbitral award on agreed terms.

      2. An arbitral award on agreed terms shall be made in accordance with the provisions of article 45 of the present Law. Such an award has the same effect as any other arbitral award on the merits of the case.

Article 47. Form and Contents of Award

      1. The award shall be made in writing and shall be signed by the arbitrator or arbitrators.

      In arbitral proceedings with panel of arbitrators, in the case when signature of any arbitrator omitted, the reason for any omitted signature shall be stated. The award may be unsigned by an arbitrator who has an opinion in dissent, which shall be attached in writing to the award.

      2. The arbitral award shall state:

      1) date of award making;

      2) place of arbitral proceedings determined in accordance with article 22 of the present Law;

      3) composition of arbitration;

      4) justification of arbitration jurisdiction;

      5) name of the parties to the dispute, names and initials, position of their representatives and their powers;

      6) claims of claimant and objections of respondent;

      7) substance of dispute;

      8) circumstances of case found by the arbitration, the evidence that became the basis for conclusions of the about these circumstances, and the regulatory and legal acts which the arbitration was governed by when making a decision;

      9) conclusions of the arbitrator about satisfaction or refusal in satisfaction of each referred claim;

      10) the amount of costs associated with the dispute resolution in arbitration, the allocation of these costs between the parties, and the term and procedure for the award execution, if necessary.

Article 48. Determination Rendered by Arbitration

      Justified determinations shall be rendered in respect of issues not affecting the substance of the dispute.

Article 49. Termination of Arbitral Proceedings

      The arbitral proceedings are terminated by the determination of the arbitral proceedings on the grounds provided for in paragraph 2 of this article. 

      2. The arbitration shall render a determination on the termination of arbitral proceedings when:

      1) a claimant withdraws his claim, and the withdrawal is accepted by the arbitration, unless a respondent objects thereto due to the fact that he has a legitimate interest in resolving the dispute on the merits;

      2) dispute referred for resolution in the arbitration does not fall within its competence;

      3) there is a court decision and arbitral award entered into force on the dispute between the same parties, on the same subject and on the same grounds;

      4) parties have agreed to terminate the arbitral proceedings;

      5) a legal entity that is a party to the arbitral proceedings has been liquidated;

      6) an individual who is a party to the arbitral proceedings has died or has been declared dead or missing.

Article 50. Correction and Interpretation of Award. Additional Award

      1. Within sixty days after receipt of the arbitral award, unless another period of time has been agreed upon by the parties:

      1) any of the parties, with notice to the other party, may request the arbitration to correct in the award any errors in computation, any clerical or typographical errors or any errors of similar nature;

      2) any of the parties, with notice to the other party, may request the arbitration to give an interpretation of a specific clause or part of the award.

      If the arbitration considers the request to be justified, it shall make the correction or give the interpretation within thirty calendar days of receipt of the request unless otherwise determined in the Rule or by agreement of the parties. Interpretation an arbitral award shall be deemed a binding part of the arbitral award.

      2. The arbitration within sixty calendar days from the date of the arbitral award, unless otherwise provided for by the rules or the agreement of the parties, may, on its own initiative, after proper notification of the parties, correct any errors referred to in paragraph 1 (1) of this article.

      3. Unless otherwise agreed by the parties, any of the parties, with notice to the other party, may request, within sixty days of receipt of the arbitral award, the arbitration to make an additional award as to claims presented in the arbitral proceedings but omitted from the award. If the arbitration considers the request to be justified, it shall make an additional award within days of receipt of the request.

      4. The arbitration may extend, if necessary, the period of time but not more than for sixty calendar days, within which it shall make a correction, interpretation or an additional award under paragraph 1 or 3 hereof.

Article 51. Revision of Arbitral Award in View of Newly Discovered Circumstances

      1. An arbitral award may be reviewed at the request of a party to the arbitration agreement or other person whose rights are affected by the newly discovered circumstances. The grounds to review the award on newly discovered circumstances are the following:

      1) established by a court sentence that has entered into force, patently false testimony of a witness, patently false expert opinion, patently incorrect translation, forged documents or physical evidence that resulted in an unlawful or unjustified decision;

      2) established by a court sentence that has entered into force, criminal actions of the parties, other persons involved in the case, or their representatives or the criminal actions of the arbitrator committed during the proceedings of the case;

      3) recognition of the law or other regulatory legal act, that was applied by the arbitration in making of award, invalid by the Constitutional Council of the Republic of Kazakhstan.

      2. An application for review of the award on newly discovered circumstances shall be submitted to and considered in the arbitration that has made the award within three months from the date of establishment of the circumstances that served as the basis for the review in the manner prescribed by this Law, unless another term is established by the Rules or the agreement of the parties.

      Cases on the newly discovered circumstances shall be considered and resolved by arbitration within the time frame up to one month.

      When it is impossible to conduct of session of arbitration including permanent arbitration, which made the award in the same composition, the application for review of the award in view of newly discovered circumstances shall be considered by a new composition of arbitration to be formed according to procedure established by the present Law.

Article 52. Grounds for Setting Aside of Arbitral Award

      1. A party that applying for setting aside of arbitral award shall provide evidence that:

      1) it contains decision on a dispute that is not stipulated by the arbitration agreement or is not subjected to its terms, or it contains resolutions on matters which are beyond the scope of the arbitration agreement, and also the dispute is not within jurisdiction of the arbitration.

      If the arbitral award on matters covered by the arbitration agreement can be separated from decisions on matters uncovered by such agreement, only that part of arbitral award may be set aside, which contains decision on matters uncovered by the arbitration agreement;

      2) one of the parties to the arbitration agreement was recognized by the court as incapable or the arbitration agreement is invalid under the law to which the parties have subjected it, and in the absence of such indication - under the legislation of the Republic of Kazakhstan;

      3) a party was not duly notified on the appointment of arbitrator or of the arbitral proceedings, or on other reasons that were deemed to be sufficient by the court, and was not able to produce his explanations;

      4) composition of arbitration or procedure of arbitral proceedings were not in accordance with the agreement of the parties;

      5) there is an effective court decision or arbitral award, or determination by court or by arbitration which were made in respect of a dispute between the same parties, on the same subject matter, and on the same grounds, about the termination of proceedings due to the withdrawal of claim by a claimant;

      6) arbitral award does not meeting the requirements for written form and signature provided for in article 47 of the present Law.

      2. An Arbitration award is set aside by court when it is found that:

      1) arbitral award contradicts to the public policy of the Republic of Kazakhstan;

      2) arbitral award is made to the dispute which may not be the subject of arbitral proceedings under the legislation of the Republic of Kazakhstan.

Article 53. Application for Setting Aside of Arbitral Award

      1. Application for setting aside of arbitral award shall be furnished to the court in accordance with the civil procedure laws of the Republic of Kazakhstan.

      2. Application for setting aside of arbitral award may not be furnished upon the expiry of one month from the date of receipt of arbitral award by the applying party, but in the case when the request was referred in accordance with article 51 of the present Law, from the date of making arbitral award at this request.

      3. The court may, at the request of one of the parties, suspend the proceedings for setting aside of the arbitral award for a fixed period of time in order to resume the arbitral proceedings or to take other measures to eliminate the grounds for setting aside of the arbitral award.

      If arbitrators make a new award, the party is entitled, within the time frame determined by the court, without filing a statement of claim, request the setting aside of the award in respect of the renewed arbitral proceedings or changes to the original award.

      4. Court shall render determination on the matter of setting aside of arbitration award. This determination may be appealed or challenged in accordance with the civil procedure laws of the Republic of Kazakhstan.

Chapter 7. RECOGNITION AND ENFORCEMENT
OF AWARDS

Article 54. Recognition and Enforcement of Awards in the Republic of Kazakhstan

      1. An arbitral award shall be recognized as binding and, upon application in writing to the competent court, shall be enforced subject to the provisions of the civil procedure laws of the Republic of Kazakhstan.

      2. If no time frame is determined in the arbitral award, it is subject to immediate enforcement.

Article 55. Compulsory enforcement of arbitral award 

      1. If an arbitral award has not been executed voluntarily within the time frame specified therein, it shall be enforced.

      2. An arbitral award shall be enforced in accordance with the enforcement proceedings rules, which are valid at the time of execution of the award, on the basis of the writ of execution issued by the court.

      3. Application for setting aside of arbitral award shall be furnished to the court in accordance with the civil procedure laws of the Republic of Kazakhstan.

Article 56. Recovery of Expenses Related to Enforcement of Arbitral Award

      Additional costs related to the enforcement of the award shall be borne by the party that failed to execute the award voluntarily.

Article 57. Grounds for Refusing Recognition or Enforcement of Arbitral Award

      1. The court shall refuse to recognise and (or) enforce an arbitral award, irrespective of the country in which it was made, on the following grounds:

      1) a party against which the arbitral award was made furnishes to the court proof that:

      the arbitration agreement is void according to the laws of the state to which the parties have subordinated it and in the absence of such indication, according to the laws of the Republic of Kazakhstan;

      an arbitral award is made on a dispute that is not stipulated by the arbitration agreement or is not subjected to its terms, or it contains resolutions on matters which are beyond the scope of the arbitral agreement, and also the dispute is not within jurisdiction of the arbitration.

      If the arbitral award on matters covered by the arbitration agreement can be separated from decisions on matters uncovered by such agreement, the issuance of an writ of execution to enforce that part of the arbitral award that is covered by the arbitration agreement, may not be refused;

      one of the parties was recognized by the court as incapable or partially capable;

      a party against which the decision was made was not duly notified on the appointment of an arbitrator or arbitral proceedings, or for other reasons that were deemed to be sufficient by the court, failed to present his explanations to the arbitration;

      there is an effective court award or arbitral award, or determination by court or by arbitration which were made in respect of a dispute between the same parties, on the same subject matter, and on the same grounds, about the termination of proceedings due to the withdrawal of claim by a claimant;

      making of award became possible due to committed criminal offense which was legally proved by court decision;

      composition of arbitration or the arbitral proceedings did not meet the requirements of the law;      

      the award has not become obligatory for the parties yet or it was set aside, or its enforcement was suspended by the court of the country in accordance with the law of which the award was made;

      2) the court decides that the recognition and (or) enforcement of this arbitral award contradicts to the public policy of the Republic of Kazakhstan, or that the dispute, to which the award was made, may not be subject of arbitral proceedings in accordance with the present Law.      

      2. Court shall render a determination on the recognition and (or) enforcement of the arbitral award. This determination may be appealed or challenged in accordance with the civil procedure laws of the Republic of Kazakhstan.

Chapter 8. FINAL AND TRANSITIONAL PROVISIONS

Article 58. Responsibility for the Violation of Arbitration Laws of Republic of Kazakhstan

      A violation of the legislation of the Republic of Kazakhstan on arbitration shall entail a liability, established by the laws of the Republic of Kazakhstan.

Article 59. Transitional Provisions

      1. International arbitrators and arbitral tribunals established in the Republic of Kazakhstan prior to the enactment of the present Law shall within two years from the date of entry into force of this Law properly amend their provisions, statutes or rules.

      2. Organizational issues related to the holding of the first constituent meeting for the establishment of the Arbitration Chamber referred to in article 11 hereof shall be to encumbered upon the Ministry of justice of the Republic of Kazakhstan.

Article 60. Procedure for the Enactment of the present Law

      1. This Law shall enter into force upon the expiry of ten calendar days after the day of its first official publication.

      2. Declare to be no longer in force:

      1) Law of the Republic of Kazakhstan dated December 28, 2004 On Arbitration Courts (Vedomosti of Parliament of the Republic of Kazakhstan, 2004, No. 24, Article 151; 2009, No. 9-10, Article 47; 2010, No. 3-4, Article 12; 2012, No. 6, Article 43; No. 14, Article 93; 2013, No. 15, Article 76; 2014, No. 16, Article 90);

      2) The Law of the Republic of Kazakhstan of December 28, 2004 “On International Arbitration” (Vedomosti of the Parliament of the Republic of Kazakhstan, 2004, No. 24, Article 152; 2010, No. 3-4, Article 12; 2013, No. 15, Art. 76; 2014, No. 12, Art. 82).

      President
      of the Republic of Kazakhstan N. NAZARBAYEV