The company Liglass Trading threatens Kyrgyzstan with international arbitration, the Czech media reported with reference to the official press release of the company.
It is noted that Liglass Trading hasn’t yet received a notification from Kyrgyzstan about the deal’s termination. The Czech company's leadership has learned from media reports that it won’t build a hydroelectric power station in the Kyrgyz Republic. At the same time, Liglass Trading recalled that under an investment agreement they have three more months to settle all disputes by negotiation.
If the government of Kyrgyzstan actually withdraws from the treaty, not respecting the provisions of the treaty governing dispute settlement rules, Liglass will appeal to international arbitration.
Recall, the government and the State Committee for Industry, Energy and Subsoil Use have repeatedly stressed that all disputes with the investor regarding the project will be decided exclusively in the courts of Kyrgyzstan. There is no question of any international arbitration. In addition, the official notice of termination of the contract of the company will be sent only today, as the deadline for payment of $ 37 million expired yesterday.
According to Article 7 of the investment agreement between the parties, in case of disputes, they have three months to negotiate. If the negotiations haven’t yielded results, the parties turn to the dispute settlement procedure. The party receiving the claim must consider it within three months and is obliged to notify the other party of its decision to accept the claim, discuss it or refuse to satisfy the claim. And the last instance is the resolution of disputes under the legislation of Kyrgyzstan.