International arbitration rules Kyrgyzstan to pay $24 million to Stans Energy Corp, Kutesay Mining LLC

AKIPRESS.COM - Stans Energy Corp and Kutesay Mining LLC companies received copies of the decision from the arbitration Tribunal in ongoing dispute with the Kyrgyz Republic.
The Tribunal determined that Stans prevailed on jurisdiction and on the merits of our claim, awarding Stans a sum of approximately $24 million inclusive of damages, interest, and costs, Bloomberg reported.
According to the press service of the government of Kyrgyzstan, Stans Energy Corp and Kutesay Mining LLC companies in 2015 initiated an international arbitration process against Kyrgyzstan demanding to compensate damage caused as a result of allegedly illegal actions of Kyrgyz authorities during the period of 2013-2014 regarding the termination of licenses for mining at Kuttesay-2 and Kalesay mines.
As of the hearing date on this case, initial requirements of the suitors taking into acount the percentages amounted to $304,23 million (including $128 million for allegedly existing costs and about $175 million of the cost of working capital), the press service says.
The arbitration Tribunal on August 20, 2019 delivered a verdict, according to which about 6% of the demanded sum of claims, or $15 million plus percentages at the rate of 5% since 2014 were satisfied.
In addition, the arbitration awarded in favor of the suitors 2/3 of the legal expenses incurred by them (about $4 million).
To date, the Kyrgyz side is considering the decision of the arbitration for development of strategies of further actions.
The Kyrgyz side claims that the companies received licenses for mining by bribing officials and legalization of bribes via offshore companies in the AsiaUniversal Bank JSC.
On the basis of this, the Kyrgyz Republic plans to resist the recognition and enforcement of the arbitration decision in any country, where the companies are attempting to execute it, the government reported.
The government also noted that there have been years of litigation and arbitration in Canada and Russia on lawsuits of these companies that ended in 2015 and 2017, correspondingly, in favor of Kyrgyzstan.
In 2015, the Kyrgyz Republic could cancel the arbitral award of the Arbitration Court at the Moscow Chamber of Commerce and Industry in the amount of $118 million issued in favorof Stans Energy Corp and Kutesay Mining LLC on similar claims.
In 2016, the government achieved the cancellation of the arrest of stakes of Centerra Gold Inc. in Kyrgyzaltyn JSC imposed by Stans Energy Corp in the amount of about $300 million.
The Kutisay Mining LLC had the licenses for development of rare earth elements, bismuth, molybdenum, silver on the Kutessay II field and for development of beryllium, lead at the Kalesay field.