Legal Dispute - The Times Of Central Asia

Viewing results 1 - 6 of 4

Legal

Kazakhstan Engaged in Legal Disputes with 20 Foreign Companies

Kazakhstan is currently involved in 20 legal disputes with foreign companies, a decrease from 26 cases in 2023, according to Yerlan Musabayev, Acting Director of the Department for the Protection of State Property Rights under the Ministry of Justice. “As of now, the Ministry is handling 20 cases involving claims totaling more than $7.5 billion,” Musabayev stated during a briefing in Astana. Of these, 13 are under review in international arbitration, five are in foreign courts, and two are in the pre-litigation stage. The reduction in the number of disputes reflects progress made over the past year, he noted. Among the Ministry's recent successes, Musabayev highlighted a key ruling by the High Court of Justice in London in favor of Kazakhstan in a case filed by Canadian uranium company World Wide Minerals (WWM). The dispute originated from Kazakhstan’s 1997 decision to deny WWM an export license for uranium and terminate a trust management contract for the Tselinograd Mining and Chemical Plant (now the Stepnogorsk Mining and Chemical Plant). The High Court ruling, issued on February 28, 2025, overturned a 2024 decision that had awarded WWM approximately $65 million. “Under the 2025 decision, the Republic of Kazakhstan has no obligations toward World Wide Minerals. It’s worth noting that the bar for appeals in UK courts is exceptionally high, fewer than 2% succeed,” Musabayev said. Another legal victory came in a case involving the Kazakh-Italian construction joint venture Todini Impregilo Kazakhdorstroy. The company had sought $20 million in claims, but the International Chamber of Commerce Arbitration Court in Paris dismissed all demands and ordered the joint venture to reimburse $277,000 in legal costs. Enforcement of the ruling required compulsory measures. “The Ministry of Justice is actively working to further reduce the number of disputes with foreign entities. Through coordinated efforts with other state bodies and the Government’s legal advisors, we’ve saved considerable budgetary resources, preserved Kazakhstan’s investment attractiveness, and strengthened the country’s international reputation,” Musabayev concluded. As previously reported by The Times of Central Asia, Kazakhstan resolved a long-standing legal battle with Anatolie and Gabriel Stati’s Tristan Oil in 2024, following protracted litigation over the nationalization of oil assets. Meanwhile, early reviews of certain production-sharing agreements in the oil sector could lead to new legal proceedings in the near future.

Low-cost airlines

Uzbek Student Accuses Wizz Air of Discrimination After Being Denied Boarding without Explanation

Earlier this year, Uzbekistan’s Competition Committee took action against Wizz Air following complaints about the airline’s failure to offer safety instructions in the Uzbek language on a flight from Samarkand to Abu Dhabi. Now, another troubling incident has come to light, this time, involving an Uzbek student who claims he was denied boarding without explanation, possibly due to his nationality. ------- Suhrob Ubaydullayev, a University of World Languages student in Uzbekistan, was returning home after completing a Work and Travel program in Europe. He had booked a Wizz Air flight from Rome to Abu Dhabi, with a connection onward to Samarkand. According to Ubaydullayev, despite having all required travel documents — including a valid passport, visa, and certificates from Germany’s Federal Employment Agency — he was inexplicably denied boarding at the gate. “I had all my documents in order,” Ubaydullayev told The Times of Central Asia. “The staff checked them and gave them back to me, but when I reached the gate, they suddenly said I couldn’t fly. No reason. No explanation.” He claims the airline staff asked him a single question — “Are you from Uzbekistan?” — and upon hearing his affirmative response, refused to let him on board. What followed, he says, was a humiliating and deeply distressing ordeal: threats of calling the police, warnings that his embassy wouldn’t be able to assist him, and a refusal to provide any written explanation. “I was speaking English clearly — communication wasn’t an issue,” he told TCA, “but they treated me like a criminal. I believe it was simply because I’m from Uzbekistan.” Ubaydullayev says that this incident occurred on 31 August 2023. He has repeatedly sent emails to the company requesting compensation. However, most emails went unanswered, or he was told to wait. ------- After being left behind in Rome, Ubaydullayev’s troubles worsened. Because he was denied boarding on August 31, Ubaydullayev was at immediate risk of overstaying his visa, which expired on the same day. This meant that any further stay in the Schengen area would make his presence technically illegal under EU immigration law. He scraped together borrowed funds to fly to Istanbul, where he found himself sleeping on the streets. “I met some Uzbek guys near the Sultan Ahmed Mosque who offered help,” he said. “But they ended up taking my money and disappearing.” His eventual return home took him through Kazan, Russia, and Osh, Kyrgyzstan, before finally reaching Namangan — emotionally drained, physically exhausted, and over $2,000 in debt. Now, Ubaydullayev has accused Wizz Air of discrimination, human rights violations, and consumer protection breaches. He has filed a complaint with the European Court of Human Rights and says his lawyers are currently working through the pre-trial phase. “This is about more than me,” he said. “This is a fight for justice — for every Uzbek passenger who deserves to be treated with dignity.” ------- In giving a legal assessment of Ubaydullayev’s case to TCA, legal expert Azizbek Odilov says the airline’s actions amount to a...

Justice

Moldovan Businessmen Hail Tokayev’s Role in Resolving Stati Dispute

On December 18, the protracted legal dispute between Kazakh authorities and Moldovan businessmen Anatol and Gabriel Stati over oil and gas assets was finally resolved. Following the agreement, the Stati representatives expressed gratitude to Kazakh President Kassym-Jomart Tokayev for his leadership in reaching the settlement. The Ministry of Justice of Kazakhstan reported that the resolution concludes a legal saga that spanned 15 years and impacted Kazakhstan's reputation as an investment-friendly nation. The ministry stated that the government, the National Bank of Kazakhstan, and the Stati parties, with the support of Tristan Oil’s leading creditors, successfully finalized the settlement process. “The signed Final Settlement Agreement forms the basis for the termination of all ongoing disputes, with no possibility of reopening them in the future. The specific terms of the agreement remain confidential,” the Ministry of Justice emphasized. Daniel Chapman, CEO of Argentem Creek Partners - investment manager for funds that are creditors of Tristan Oil Limited, the Stati family’s investment vehicle - praised the resolution. “This settlement and Kazakhstan’s approach to ensuring a fair resolution underscore the country’s respect for investor rights. We thank President Tokayev for his leadership, which has positively reshaped how foreign investors view Kazakhstan. We look forward to collaborating on new projects,” Chapman said. Kazakhstan’s Minister of Justice, Azamat Yeskarayev, noted the settlement’s significance for the nation’s economic future. “The resolution of this longstanding dispute creates additional opportunities for economic growth and investment,” he said, emphasizing that no funds from the national budget were used in the settlement process. The case had involved extensive litigation across multiple jurisdictions over 15 years. While the exact legal costs incurred by Kazakhstan remain undisclosed, the settlement signals a major step forward in resolving disputes with foreign investors and rebuilding trust.

Legal Dispute International investment

Kazakhstan Resolves Dispute with Stati Amid Allegations of Litigation Profiteering

Kazakhstan’s government and representatives of the Stati family have reached an agreement to cease all legal proceedings regarding the case (Republic of Kazakhstan v. Ascom Group SA) with approval from major creditors, including an offshore investment vehicle of the Stati parties called Tristan Oil Ltd. The Stati side includes the family, as well as investors in Argentem Creek Partners (the investment manager of funds that lent money to Tristan Oil), and other possible shareholders. While the agreement comes after a fourteen-year dispute over oil and gas assets in Kazakhstan, its precise details remain confidential. Daniel Chapman, CEO of Argentem Creek Partners, was quoted in the Ministry of Justice statement as saying: “We support the framework agreement and commend President Tokayev’s decision to create a Fair Kazakhstan as part of his admirable reforms. With the settlement of this dispute, Kazakhstan is honoring international treaty obligations and, thereby, opening its doors to increased investment and heightening its economic growth potential. We welcome this new era for Kazakhstan.” Kazakhstan’s Minister of Justice, Azamat Yeskarayev said the agreement “was made in view of the public interest and does not involve the spending of budgetary funds,” and added: “We believe that this move will have a positive effect on attracting new investments in our country and on the growth of the economy.” A brief history of the dispute In 1999, Tristan Oil Ltd., an offshore company, was granted exploration and production rights at the Borankol oil field and the Tolkyn gas field located in the Mangistau region of Kazakhstan through the acquisition of Kazpolmunai LLP and Tolkynneftegaz LLP in the same year. Additionally, Tristan Oil Ltd. made investments towards the construction of a modern liquefied gas processing plant to become operational by the end of the 2000s. In 2010, assets of the Stati family were nationalized with the authorities citing their unlicensed activities, and were transferred to the trust management of KazMunayGas JSC structures. Moldovan businessmen decried the seizure as violating provisions of the Energy Charter Treaty, filed lawsuits claiming illegal seizure of their property, and began a legal battle in international jurisdictions that lasted for fourteen years. This event became a core component of the Republic of Kazakhstan v. Ascom Group SA case involving Tristan Oil Ltd. Kazakhstan’s representatives claimed that Stati’s creditor, Argentem Creek Partners, had conspired to enforce a tainted award. However, the lawsuit was dismissed by the Supreme Court of Sweden in a final June 2023 decision awarding $497.6 million to Stati parties. The court's decision mandated the Kazakhstan Government to disburse the initial instalment of approximately $76 million to the Stati family, along with accrued interest based on six-month U.S. Government bond rates, starting from April 2009. Additionally, the ruling included an allocation of $1.5 million to cover legal expenses. Despite the final and binding decision in Sweden, the legal battle showed no signs of abating, with cases continuing in England, the U.S., the Netherlands, Luxembourg, Belgium and Italy. The Ministry of Justice of Kazakhstan appeared intent on prolonging...