Arbitration case - The Times Of Central Asia

Viewing results 1 - 6 of 3

Uzbektelecom Responds to Arbitration Case Filed by Humans Mobile

Following the news that Humans Mobile Ltd has launched an international arbitration case against Uzbekistan, state-owned telecom operator Uzbektelecom has publicly denied any wrongdoing and accused the company of failing to pay its contractual debts. On June 3, the International Centre for Settlement of Investment Disputes (ICSID), part of the World Bank Group, registered the case filed by Humans Mobile Ltd, a subsidiary of the Singapore-based Humans Group. The company alleges that Uzbekistan violated a 2003 bilateral investment treaty between the two nations. According to Humans Mobile, actions taken by Uzbek authorities disrupted its business operations and undermined the investment climate. In response, Uzbektelecom issued a detailed statement rejecting the accusations. The company stated that Humans Mobile has been using Uzbektelecom’s infrastructure since 2020 without developing its own network, unlike other mobile operators in the country. “Humans continues to earn money by using our mobile network but delays payment for the services,” Uzbektelecom said. The operator claimed that repeated warnings were issued to Humans about possible service disconnection due to unpaid debts. In turn, Humans filed a complaint with the Committee on Competition, alleging unfair treatment. Some media outlets have suggested that Uzbektelecom may be leveraging its dominant market position to exert pressure on the Humans Group. Uzbektelecom dismissed these claims, asserting that Humans Group is free to contract with other providers such as Ucell, Beeline, or Mobi.uz. The company emphasized that no legislation mandates virtual mobile operators to exclusively use Uzbektelecom’s infrastructure. Uzbektelecom also highlighted its broader contributions to national digital development. Between 2017 and 2024, the company claims it reduced the cost of 1 Mbps of internet bandwidth for local providers by a factor of 40. Despite what it describes as repeated contractual violations by the group, Uzbektelecom says it continued to provide service in order to avoid disruption for end-users, including those who are not direct customers. On May 8, the Tashkent Economic Court ruled in favor of Uzbektelecom, ordering Humans Group to settle its outstanding debt. The company said it may pursue additional legal action to protect its reputation should misinformation continue to circulate. Uzbektelecom concluded its statement by reaffirming its commitment to fair competition, transparency, and open dialogue with all market participants, including Humans Mobile, provided contractual obligations are met.

Uzbekistan Justice Bilateral Investment Arbitration case Humans Mobile Ltd

Humans Group Files Arbitration Against Uzbekistan Over Alleged Investment Violations

Humans Mobile Ltd, a subsidiary of the Singapore-based Humans Group, has initiated arbitration proceedings against Uzbekistan at the World Bank’s International Centre for Settlement of Investment Disputes (ICSID). The case, registered under ARB/25/24, alleges that Uzbekistan violated a 2003 bilateral investment treaty between the two countries. According to an official statement published by Bilaterals, Humans Mobile seeks compensation for damages it claims were caused by the actions of several Uzbek state authorities. The company argues that these actions disrupted its operations and compromised the rule of law in the country. “We have always believed in Uzbekistan and its citizens,” said Vladimir Dobrynin, CEO and founder of Humans Group. “But transformation efforts must be supported by fair and predictable rules. Arbitration is a standard process to protect investors against unfair treatment.” Dobrynin added that the arbitration aims not only to secure compensation but also to promote legal stability and strengthen the investment climate in Uzbekistan. Humans Group operates in the United States, Uzbekistan, Poland, Singapore, and Germany. Its Uzbek venture, Humans.uz, functions as a “super app” combining financial services, mobile communications, grocery delivery, and online retail. Market Dispute with Uzbektelecom In a separate but related development, Humans filed a complaint on May 8, 2025, with Uzbekistan’s Antimonopoly Committee, requesting an investigation into the state-owned telecom operator Uzbektelecom. The company accuses Uzbektelecom of abusing its dominant market position by maintaining high internet prices. As a Mobile Virtual Network Operator (MVNO), Humans relies on Uzbektelecom’s infrastructure under a contract signed in May 2020. According to the complaint, while global internet prices have declined since 2021, Uzbektelecom has not adjusted its rates accordingly. Humans argues that despite lowering its own prices to stay competitive, unchanging infrastructure costs now account for 58% of its total service costs, making its business model unsustainable. “There is no economic reason to maintain such high prices. Uzbektelecom is receiving unjustified profit at the expense of infrastructure users like us,” the company stated in its complaint, as quoted by Spot. Humans also revealed that it has incurred significant debt due to what it describes as “monopoly-level pricing.” In a March 27, 2024, warning letter, Uzbektelecom demanded repayment of 532 billion Uzbek soums, comprising 361 billion in outstanding payments and over 170 billion in penalties. The company warned that internet speeds would be throttled starting March 1, 2025, with full disconnection by June 1 if the debt remains unpaid. Legal action may also follow. Uzbekistan’s Track Record in Arbitration This is not the first time Uzbekistan has faced international arbitration. The Times of Central Asia previously reported that Uzbekistan won a case brought by Turkish textile firm Bursel Tekstil, which had sought $700 million in damages over alleged breaches of cotton pricing and tax policy commitments. The tribunal ultimately ruled in favor of Uzbekistan and ordered Bursel to pay legal costs. In another high-profile case reported by The Times of Central Asia, the ICSID ruled in May 2024 that Kyrgyzstan must return four resorts to Uzbekistan. The tribunal found that Kyrgyzstan...

Justice Arbitration case Bursel Tekstil Uzbek government

Uzbekistan Wins Arbitration Case Against Turkish Textile Company

On October 10, 2024, the International Centre for Settlement of Investment Disputes (ICSID) announced its decision in the case between Turkish company Bursel Tekstil Sanayi ve Dış Ticaret A.Ş. and Uzbekistan. According to Uzbekistan’s Ministry of Justice, the tribunal rejected all claims made by Bursel Tekstil. The dispute began in July 2017, when Bursel Tekstil accused the Uzbek government of breaching promises related to cotton pricing and tax policies, actions the company claimed had led to its bankruptcy. Bursel Tekstil sought approximately $700 million in compensation. However, the tribunal ruled in favor of Uzbekistan and ordered Bursel Tekstil to cover the country's legal costs. Bursel Tekstil had invested in Uzbekistan’s textile industry in the early 2000s, helping to build a textile plant in Tashkent with funding from the OPEC Fund for International Development and the European Bank for Reconstruction and Development. By 2011, the company operated three factories in Uzbekistan. Uzbekistan was represented in the arbitration by the Ministry of Justice and the American law firm White & Case. Under ICSID rules, the tribunal’s decision is final and binding. Previously, The Times of Central Asia reported on another ICSID decision in May 2024, ordering the return of four resorts in Kyrgyzstan to Uzbekistan. In that case, Uzbekistan successfully argued that Kyrgyzstan had violated a 1992 agreement among former Soviet Union countries, which stipulates that property belonging to one country but located on the territory of another remains the property of the original owner.