An archive of the key court rulings in the Tristangate dispute.
New York District Court motion to dismiss “improper collateral attack” on binding award and compel Outrider into arbitration
Lawyers acting for Argentem Creek Partners filed a motion in the United States District Court for the Southern District of New York seeking to dismiss Kazakhstan’s suit, as well as a separate motion to compel Outrider to submit its claims to arbitration.
Kazakhstan’s claims are identical to issues raised in previous proceedings, the motion to dismiss argues, noting that these were already litigated and decided in other courts. The motion to compel arbitration is based on the grounds that the Sharing Agreement signed between Tristan’s noteholders in 2012 mandates the use of arbitration to resolve differences rather than filing of complaints in the American courts and that all noteholders agree to arbitrate when they purchase notes. Outrider, who decided to join Kazakhstan earlier this year in backing the fictional fraud claims, is a signatory to the Sharing Agreement.
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The Stockholm District Court allows the Stati Parties to attach any Kazakh state assets on Swedish soil as an enforcement measure under the Award.
The bailiff in Luxemburg places a freeze on Kazakhstan’s 40% stake in Eurasian Resources Group, formerly publicly listed company ENRC, which was taken private in 2013 valued at £3.1 billion. In addition, dividends owed to Kazakhstan by ERG in the sum of US$ 48 million are frozen as a result of this attachment.
The Svea Court of Appeal in Sweden upholds the award in full by dismissing all of the challenges (including based on the fraud allegations) brought by Kazakhstan against the award and refuses the right to appeal its judgment to the Swedish Supreme Court.
The Tribunal holds that Kazakhstan has violated its obligations under the ECT and awards the Stati Parties damages of approximately US$ 500 million, plus costs and interest.
In its 414-page reasoned award the Tribunal holds that:
“[Kazakhstan’s] measures, seen cumulatively in context to each other and compared with the treatment of the Claimants’ investments before the Order of the President of the Republic [Nursultan Nazabayev] on 14/16 October 2008, constituted a string of measures of coordinated harassment by various institutions of [Kazakhstan]. These measures must be considered as a breach of the obligation to treat investors fairly and equitably, as required by Art 10(1) ECT”.