International arbitration satisfied about 6% of claims of Stans Energy Corp. and Kutessay Mining LLC to Kyrgyzstan, having ruled to compensate only some direct costs for development of Kutessay II and Kalesay deposits and a part of the court costs, but rejected the rest of the claims, the Center for Legal Representation of the government of the Kyrgyz Republic reported.
In 2015 Stans Energy Corp. and Kutesay Mining LLC initiated international arbitration against Kyrgyzstan with a request to compensate for damage caused as a result of unlawful actions of the authorities of the republic in 2013-2014 and related to the termination of licenses for the development of Kutessay II and Kalesay deposits.
In April 2018 claims of the plaintiffs, including interest, amounted to $304.23 million, including $128 million of losses and about $175 million of the cost of raising working capital.
On August 20 the arbitration court granted about 6% of the claim, namely $15 million plus 5% at the rate since 2014.
In addition, the arbitral tribunal awarded the plaintiffs 2/3 of the costs incurred by them (up to $4 million).
Currently, legal advisers to the government of Kyrgyzstan are studying the arbitration decision to develop a strategy for further action.
The Kyrgyz side insisted that the plaintiffs obtained the rights to Kutessay II and Kalesay deposits by bribing officials and legalizing the bribe amount through accounts of offshore companies at AsiaUniversalBank OJSC.
In 2015 Kyrgyzstan succeeded in canceling the decision of the Arbitration Court at the Moscow Chamber of Commerce and Industry for $118 million in favor of Stans Energy Corp. and Kutesay Mining LLC on similar claims.
In 2016 the republic achieved cancellation of arrest of shares of Centerra Gold owned by Kyrgyzaltyn OJSC in the amount of approximately $300 million, imposed by Stans Energy Corp. (24.kg/Ukrainian metal)