• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to secondary sidebar
  • Skip to footer

OPINT

OPINT stands for Operational Intelligence

  • About
  • Sponsored Post
    • Make a Contribution
  • Job Board
  • Contact

Belgian Appellate Court Upholds US$542 Million Freeze of Kazakhstan’s National Fund Assets

June 30, 2021 By admin Leave a Comment

Ruling Concerns US$545 Million Arbitral Award in Favor of Moldovan Investors

NEW YORK – The Brussels Court of Appeal on June 29, 2021, rejected the appeals brought by the Republic of Kazakhstan and the National Bank of Kazakhstan (NBK) against an attachment of Kazakhstan’s state assets in Belgium. The attachment followed Kazakhstan’s continued unlawful refusal to pay a US$545 million final and binding arbitral award in the Stati parties’ favor in December 2013.

The Stati parties in October 2017 obtained an attachment of assets of Kazakhstan’s National Fund on Belgian soil totaling US$22.6 billion held by BNY Mellon (BNYM) in its capacity as the global custodian of the National Fund and managed by NBK in its capacity as the trustee manager of the Fund. The size of the attachment was later reduced to US$530 million in line with the then-value of the award and is presently estimated to equal US$542 million including accrued interest.

The Brussels Court of First Instance in May 2018 rejected Kazakhstan’s and NBK’s original petitions to lift the attachment. In its 44-page ruling, the Brussels Court of Appeal has once again sided with the Stati parties and dismissed the Kazakh parties’ appeals against the first instance court ruling in their entirety by holding that “the concrete circumstances of the case contain sufficient indications of the existence of simulation” deployed by Kazakhstan in order to hide its assets beyond the reach of the award creditors.

The Court further found that “this is clearly a case of created appearances, which the Stati parties rightly contest by levying an attachment against the real holder of the bank accounts/funds” and that the underlying National Fund trust management agreement between Kazakhstan’s Ministry of Finance and NBK is “a mere pretence to the outside world and third parties.”

The Court also rejected all of Kazakhstan’s and NBK’s arguments relating to state immunity of the attached assets by holding that the relevant National Fund assets “are invested solely with a view to maximizing long-term returns” and as such “do not fall under the protection of state immunity.”

Notably, the Belgian court also rejected Kazakhstan’s and NBK’s allegations that the award has been procured by fraud by noting that the award has been upheld twice by the Swedish Supreme Court and holding that the Stati Parties claims against the Republic are “certain, of a fixed amount and due.”

Anatolie Stati, CEO and sole shareholder of Ascom Group S.A., one of the award creditors, said: “We welcome this ruling of the Belgian court, which once again confirms the award creditors’ entitlement to full compensation under the award and paves the way for the collection of the frozen funds from BNY Mellon. Meanwhile, the flagrant contempt with which Kazakhstan’s Ministry of Justice treats the rule of law and foreign investors has created a dangerous legal precedent for the country, and it has already severely damaged Kazakhstan’s international reputation and investment climate.”

Egishe Dzhazoyan, partner at law firm King & Spalding, global litigation counsel to the Stati parties, said: “This is an historic win for the award creditors. It sets a landmark international precedent in the context of enforcement of arbitral awards against sovereign states. The ruling’s significance is further underscored by the fact that it allows recourse against attached assets, which are nominally managed by a state’s central bank and are held by an independent third party. We are pleased that the Belgian courts never lost sight of the fact that it was the Republic of Kazakhstan that has always been and remains the sole and true owner of the attached assets and accordingly the true creditor of BNY Mellon, as the court has found.”

In addition to the Belgian attachment, the Stati parties have successfully secured and maintain the benefit of various other attachments of Kazakh state property in the Netherlands, Luxembourg and Sweden, with the combined total value of all attachments worldwide exceeding US$6.25 billion.

The Belgian court ruling is the latest development in the Stati parties’ long-running battle to enforce the award for Kazakhstan’s violations of the investor protection provisions of the Energy Charter Treaty. In December 2013, a Sweden based arbitration tribunal found that Kazakhstan had violated international law by failing to treat the Stati parties’ investments in Kazakhstan fairly and equitably, and awarded the Stati parties more than US$500 million in damages, legal costs, and interest. The award has since been fully upheld by two tiers of the Swedish judiciary, including twice by the Swedish Supreme Court.

The claims originally arose out of Kazakhstan’s seizure of the Stati parties’ petroleum operations in 2010. Starting from 1999, the Stati parties acquired two companies that held idle licenses in the Borankol and Tolkyn fields and Tabyl block in Kazakhstan. They invested more than US$1 billion over the ensuing decade to turn the companies into successful exploration and production businesses. By late 2008, the businesses had become profitable and had yielded considerable revenues for the Kazakh state. Just as the Stati parties expected to start receiving dividends, more than half a dozen government agencies carried out multiple burdensome inspections and audits of the companies’ businesses that resulted in false accusations of illegal conduct directed at the Stati parties and their Kazakh companies, including criminal prosecutions of their general managers on false pretenses. Kazakhstan’s actions challenged the Stati parties’ title to their investments, subjected them to hundreds of millions of dollars in unwarranted tax assessments and criminal penalties, and ultimately led to the seizure and nationalization of their investments by Kazakh authorities in July 2010.

SOURCE Ascom Group S.A.

Filed Under: News Tagged With: legal, politics

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Market Analysis

Cloudflare is introducing the concept of the “connectivity cloud”
Robotic Revolution: Japan’s Surging Industrial Robot Market and China’s Dominance
China’s Poaching of Water Technologies from the West: A Serious Concern
Market Scenario of China Banning Exports of Rare Earth Materials and Electric Batteries
Navigating Markets through a 4-Dimensional Research Data Model
A Markov Chain-Based Approach for Forecasting Emerging Technologies: An Extended Analysis
Identifying Resilient Stocks Poised for a Strong Comeback Amidst Economic Recovery

Market Research Media

The Evolution of RSS Feeds: A Media Analyst’s Perspective
AI-Enhanced 4-Dimensional Market Dynamics Analysis: Unveiling Trends, Segmentation, Behavior, and Evolution through Markov Chain Modeling
Autotutoring Market: Personalized Learning and Technological Innovation at the Forefront
Integration of Generative AI and Large Language Models for Enterprises
The Decline of Chinese Media Under Authoritarian Rule: Economic Implications
Algorithmic Bias in Media Recommendation Systems: Unveiling Challenges and Pursuing Fairness
U.S. Federal IT Market Forecast

Secondary Sidebar

Technologies

Cloudflare and Meta Partner to Democratize Access to Llama 2 Open Source Large Language Model (LLM)
Bridging the Semiconductor Workforce Gap: Intel’s Innovative Educational Initiatives
German Government and Bavaria Invest €300M in ams OSRAM Semiconductor Tech
Innovative Ship Concept: Providing Zero-Carbon Nuclear Energy for Defense and Disaster Relief
Linux Foundation Launches OpenTofu: A New Open Source Alternative to Terraform

Venture Capital

UnitX, a robotics company specializing in AI vision systems, secures $5 Million
UserEvidence, a customer voice platform, secured $9 million in Series A funding
Cisco’s $28 Billion Splunk Deal Could Ignite Wave of Software Acquisitions
Techstars and The Ohio State University Partner to Boost Software Startups in Columbus
Atlys Secures $12M to Revolutionize Visa Processing and Travel Experience

Footer

Recent Posts

  • Operational Intelligence: Safeguarding Against Global Security Threats Through Proactive Preparedness
  • Securing Healthcare Supply Chains: Operational Intelligence in the Face of Geopolitical Disruptions
  • Navigating Trade Wars: Leveraging Economic Intelligence for Resilient Business Strategies
  • Navigating Geopolitics in the Era of Technological Evolution: Operational Intelligence as a Strategic Imperative
  • Climate Change and Geopolitical Shifts: Navigating Resource Scarcity, Migration, and Operational Resilience
  • Thriving Amidst Turmoil: Navigating Political Instability in Emerging Markets with Operational Intelligence
  • Navigating Geopolitical Shifts: Strategic Business Expansion in a Complex World
  • Navigating Geopolitical Risks: Strengthening Supply Chains Through Operational Intelligence
  • Digital Geopolitics: Safeguarding Against Cyber Threats in a Complex World
  • The Geopolitics of Energy Security: Navigating Global Energy Markets Amidst Geopolitical Turbulence

Media Partners

  • Exclusive Domains
  • Domain Dossier
  • VC Matters
  • Opinion
  • Press Media Release
  • OSINT
  • Digital Market
  • Briefly

Media Partners

  • Technology Conferences
  • Event Sharing Network
  • Defense Market
  • Cybersecurity Events
  • Event Calendar
  • Domain Aftermarkets
  • Domain Market Research
  • S3H
  • VPNW
  • ZGM

Copyright © 2022 OPINT.com

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT