HAGUE COURT OF APPEAL CANCELS ATTACHMENT OF SAMRUK-KAZYNA JSC’S SHARES IN KMG KASHAGAN BV
The Hague Court of Appeal today cancelled the attachment of shares worth around $5.2 billion held by Kazakhstan’s sovereign wealth fund JSC Samruk-Kazyna in KMG Kashagan BV.
The Hague Court of Appeal reversed its previous finding that the shares were not immune from attachment on the basis that they did not have an immediate public purpose. The Stati parties have stated their intent to appeal the judgement.
Dan Chapman, CEO of Argentem Creek Partners, stated:
“The ruling by the Hague Court of Appeal, on a narrow point of law regarding immunity, does not change the facts of this case. The Tristangate Award remains final, binding and non-appealable and has been recognized in multiple jurisdictions. Kazakhstan continues to spend millions on this legal battle and will continue to suffer reputational and financial damage if it does not honour its obligations to investors.”
Kazakhstan has refused to pay approximately $500 million plus costs and interest awarded to Tristan Oil’s owners in December 2013 by a Swedish arbitral tribunal in compensation for the harassment campaign and illegal expropriation of assets by Kazakhstan’s authorities.
The Award has since been recognized in multiple jurisdictions, including the U.S., Sweden, Luxembourg, Italy and France. A group of bondholders, including Argentem Creek, is due to receive 70% of the award proceeds under a sharing agreement with the claimants.
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