Uzbekistan returns 51% of shares of Bekabadcement to the shareholder

In 2013, twelve citizens of Kazakhstan initiated arbitration proceedings at the International Center for Settlement of Investment Disputes (ICSID) due to the actions of state bodies in respect of JSC Bekabadcement and JSC Kuvasoycement. 

“Uzbekistan and the plaintiffs have agreed to terminate the arbitration, which continued since 2013 at the International Center for the Settlement of Investment Disputes,” the report says.

As a result of the negotiations, the parties reached an agreement to terminate the ICSID arbitration on mutually beneficial terms. Within the framework of this settlement, the Government of Uzbekistan transferred 51% of shares of Bekabadcement back to the shareholders.

Uzbekistan notes that it has initiated an economic reform program and is pursuing an active foreign direct investment policy.

“By October 2020, the parties had completed all the necessary procedures under the agreement. Subsequently, on December 9, 2020, the ICSID Tribunal rendered a decision to terminate the arbitration proceedings without the right to re-appeal,” the Ministry of Justice informs.