Pre-judgement attachment of shares of KMG Kashagan B.V. in the Netherlands on the Stati case

On 7 May 2019, the Amsterdam Court of Appeal upheld the conservatory attachment of Samruk-Kazyna JSC's shares in KMG Kashagan B.V. in the Kingdom of the Netherlands worth USD 5.2 billion in an investor state dispute between Anatolie Stati, Gabriel Stati, Ascom S.A., and Terra Raf Trans Traiding Ltd. ("Stati Parties") and the Republic of Kazakhstan. The impact of the decision on Samruk-Kazyna JSC's shares in KMG Kashagan B.V. is limited. This decision does not allow the Stati Parties to monetarize Samruk-Kazyna JSC's shares in KMG Kashagan B.V. The decision only restricts Samruk-Kazyna JSC's ability to freely dispose of these assets until the two main judicial proceedings pending in the courts of the Kingdom of the Netherlands have been resolved. These proceedings concern the recognition and enforcement of the ECT award by the Dutch judiciary and the legal and factual independence of the private company Samruk-Kazyna JSC from the Kazakh state.

On 31 August 2017, the Stati Parties requested leave to levy conservatory attachments on the Republic of Kazakhstan's assets in the Kingdom of the Netherlands in ex parte proceedings, i.e. without hearing the Republic of Kazakhstan. On the erroneous contention that Samruk-Kazyna JSC must deemed part of the Kazakh state, on 14 September 2017, the Stati Parties secured a conservatory attachment of Samruk-Kazyna JSC's shareholding in KMG Kashagan B.V. in summary proceedings.

On 19 December 2013, the Stati Parties were awarded USD 497 million in an international arbitration on the basis of the Energy Charter Treaty (ECT). The Republic of Kazakhstan is vigorously defending itself against the recognition and enforcement of the ECT award in multiple jurisdictions. Shortly before the Stati Parties secured the erroneous conservatory attachment of Samruk- Kazyna's assets, the High Court of Justice in London found that there was a sufficient prima facie case that the Stati Parties had obtained the ECT award by fraud. The Stati Parties subsequently abandoned their efforts to enforce the ECT award in England and Wales because of the risk that the fraud trial scheduled for October 2018 would have exposed the full extent of the their fraudulent conduct.

The Republic of Kazakhstan is confident that justice will ultimately prevail in all proceedings pending in the courts of the Kingdom of the

Netherlands, and shall continue to vigorously defend its legal interests in all other jurisdictions in which the Stati Parties seek to recognize and enforce the fraudulent ECT award.