English Law in Kyrgyzstan? Bold Move Faces Hurdles in Investment Disputes

Kyrgyzstan’s government is considering adopting elements of English common law to handle investment disputes, but legal experts remain skeptical about its feasibility. On March 13, Chairman of the Cabinet of Ministers Adylbek Kasymaliev met with the British Ambassador to Kyrgyzstan and a group of international consultants to discuss the potential integration of English legal principles into Kyrgyzstan’s legal framework. The initiative has also received support from President Sadyr Japarov, who, in late 2024, stated at the People’s Kurultai in Bishkek that the adoption of English law principles is essential for attracting foreign investment. “Citizens and external investors have the opportunity to invest in the construction of large projects. For large investments, first of all, it is necessary to have fair courts,” Japarov stated. Challenges in Implementing English Law In an interview with The Times of Central Asia, Shamaral Maichiev, chairman of the International Court of Arbitration in Kyrgyzstan, cautioned that adopting English law would require extensive legal and structural changes. “A package of legal and regulatory documents duplicating existing commercial law, including court procedures, would need to be developed and adopted. Alternatively, specific sections based on English law principles could be incorporated into current legislation,” Maichiev explained. Beyond legislative changes, Maichiev noted that judicial retraining would be essential. This includes: Requalifying legal professionals to apply Common Law principles Establishing a register of judges specialized in Common Law Conducting court proceedings in English or other international languages could pose logistical and financial challenges Hiring foreign judges would add further costs to the national budget. “Creating a new Common Law Court would be financially burdensome for the country, requiring substantial resources and a long implementation period,” Maichiev emphasized. Existing Arbitration Mechanisms in Kyrgyzstan Legal experts argue that Kyrgyzstan already allows the use of Common Law principles in international arbitration courts, making a new Common Law Court unnecessary. Judges at the Court of Arbitration under the Chamber of Commerce and Industry of Kyrgyzstan contend that investment and commercial disputes are already effectively handled through alternative dispute resolution mechanisms. “Today, the Kyrgyz Republic is one of the regional leaders in establishing legislative mechanisms for alternative dispute resolution. To enhance Kyrgyzstan’s international reputation and investment appeal, it is proposed that the International Court of Arbitration under the Chamber of Commerce and Industry handle investment and commercial disputes, including those based on Common Law principles, without requiring state budget funds,” Maichiev told TCA. The judge expressed confidence that the International Court of Arbitration in Kyrgyzstan has the resources to become a leading center for economic dispute resolution in the Eurasian region.