ASTANA – The International Chamber of Commerce’s (ICC) arbitration tribunal in Paris issued Nov. 8 a decision rejecting an approximately $16 million claim by the Turkish company Mağdenli Yer Hizmetleri ve Taşıma Anonim Şirketi against Kazakhstan, reports the Kazakh Ministry of Justice press service.
Photo credit: euractiv.co
Mağdenli Yer Hizmetleri ve Taşıma Anonim Şirketi founded the company ATMA – Atyrau Airport and Transportation with the social business Atyrau and, in 2015, initiated arbitration proceedings against Kazakhstan. The plaintiff claimed fuel, cargo and helicopter maintenance services were expropriated by the creation of the Atyrau international airport and that the Kazakh government was to refund their $16 million investment.
The main hearing was held June 4 at the ICC in Paris. Following an examination of the arguments made, the tribunal ruled against the Turkish company on all claims. It concluded that Kazakhstan did not expropriate services, nor did it prevent the company from collecting its investments. The company is to bear all arbitration and administration costs, which is $500,000.
The tribunal emphasised that the Kazakh judicial system did not violate the foreign investors’ rights, rather complying with the principles of legality and justice. The country’s international obligations on protecting foreign investments were found to be fully implemented.
“This decision fully vindicates Kazakhstan. We remain fully committed to welcoming and protecting foreign investors on Kazakhstan’s territory,” said Kazakh Minister of Justice Marat Beketayev.
The France-based ICC is a global business organisation engaged in rule setting, dispute resolution and policy advocacy since 1919. It wields strong authority in making rules that govern the conduct of business across borders. The rules are voluntary but are nevertheless observed in daily transactions and have become part of international trade. The ICC’s International Court of Arbitration is the world’s leading arbitral institution, resolving difficulties in international commercial and business disputes since 1923.
