Tashkent, Uzbekistan (UzDaily.com) -- Uzbekistan transferred 51% of the shares of Bekabadcement back to the shareholder of this company. This was reported by the Ministry of Justice of Uzbekistan.

The statement of the Ministry of Justice notes that Uzbekistan and the plaintiffs have agreed to terminate international arbitration, which has lasted since 2013 at the International Center for Settlement of Investment Disputes (Vladislav Kim and others v. Republic of Uzbekistan, ICSID case No. ARB / 13/6) - “Arbitration ICSID ".

In 2013, twelve citizens of Kazakhstan initiated arbitration proceedings at the International Center for the Settlement of Investment Disputes (ICSID) in connection with the actions of state bodies in relation to Bekabadcement and Kuvasaycement, the majority owners of which at that time were the plaintiffs.

The plaintiffs claim that the actions of state bodies violated the Agreement between the Government of the Republic of Uzbekistan and the Government of the Republic of Kazakhstan "On Encouragement and Reciprocal Protection of Investments" from 2 June 1997 ("Agreement on the Protection of Investments"). The Uzbek side denies all the Claimants’ allegations and any violations of the Investment Protection Agreement, but at the same time seeks to resolve the dispute.

Following the negotiations, 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 shares of Bekabadcement back to the shareholder of this company.

The Uzbek side notes 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 settlement agreement. Subsequently, on December 9, 2020, the ICSID Tribunal ruled to terminate the arbitration proceedings without the right to re-appeal,” the Ministry of Justice notes.