ALMATY (Reuters) – An English appeals courtroom has allowed a Moldovan businessman to drop a authorized case towards Kazakhstan, with either side claiming tactical victories in a sophisticated authorized battle that entails over $6 billion (£four.7 billion) in frozen Kazakh property held overseas.
The courtroom ruling signifies that Moldovan tycoon Anatolie Stati and the Astana government will have to resolve their dispute in different nations.
Stati, his son Gabriel and their corporations say they have been subjected to harassment from Astana geared toward forcing them to promote their Kazakh investments cheaply.
Kazakhstan denies the allegations. The Statis and two of their corporations – Ascom Group S.A. and Terra Raf Trans Traiding Ltd – have received an arbitration award in Sweden of round $500 million towards the Kazakh government.
Kazakhstan has refused to pay, accusing Stati of utilizing fraudulent means to safe a beneficial arbitration ruling and submitting lawsuits towards him. The Statis, in flip, have filed enforcement lawsuits in a number of European nations which led to large-scale Kazakh asset freezes final 12 months.
Citing these asset freezes, the Statis this 12 months sought to discontinue courtroom proceedings in England, whereas Kazakhstan deliberate to make use of them to show its allegations of fraud. The Statis’ preliminary case was denied however they appealed efficiently towards that ruling.
On Monday, either side mentioned in separate statements that the appeals courtroom had allowed the Statis to finish the case.
Stati’s press workplace welcomed the ruling and mentioned the courtroom had agreed that “the case serves no purpose in light of the multi-billion-dollars of attachments in force in other jurisdictions”.
The Kazakh government additionally mentioned it was happy with the ruling.
“We are pleased that the London enforcement proceedings that were commenced more than four years ago have been successfully defended,” Justice Minister Marat Beketayev mentioned in a press release.
“Kazakhstan has achieved its objective in London; the Statis are not able to enforce the award in England now or at any time in the future.”
According to the Statis, over $6.2 billion in Kazakh property stay frozen in Belgium, the Netherlands, Luxembourg and Sweden.
Reporting by Olzhas Auyezov; enhancing by Andrew Roche