Uzbekistan handed over 51% of the stake in Bekabadcement JSC back to the shareholders, the Ministry of Justice reports.
In 2013, twelve citizens of Kazakhstan, who were the majority owners of company at that time, initiated arbitration proceedings at the International Center for Settlement of Investment Disputes (ICSID) due to the actions of state institutions against JSC Bekabadcement and JSC Kuvaisaycement.
"Uzbekistan and the plaintiffs have agreed to terminate international arbitration, which has lasted since 2013 at the ICSID," the statement said.
Following the talks, the parties reached an agreement to terminate the ICSID arbitration on mutually beneficial terms. As part of this settlement, the government of Uzbekistan transferred 51% of the stake of Bekabadcement JSC back to the shareholders.
The Uzbek authorities noted that the country has initiated a program of economic reforms and is pursuing an active policy in the field of foreign direct investment.
“By October 2020, the parties have completed all the necessary procedures stipulated by the amicable agreement. Subsequently, on December 9, 2020, the ICSID Tribunal ruled to terminate the arbitral proceedings without the right to re-appeal,” the Ministry of Justice notes.
