A multi-million dispute in the United States was resolved in favor of the Republic of kazakhstan

On April 26, 2019, the District Court for the District of Columbia (USA) dismissed the complaint filed in December 2010 by American companies - Turan Petroleum, Inc. (State of Delaware), Energyfund, Inc. (District of Columbia) and Trustees for Trek Resources, Inc. (State of Nevada) (hereinafter - Plaintiffs), against the Ministry of Energy of the Republic of Kazakhstan (the Ministry of Oil and Gas of the Republic of Kazakhstan). The claim amounted to more than USD 180 million.

The complaint alleged breach of concession agreements for the development and operation of Arys and Aral oil and gas fields; violation of the plaintiffs' rights under the Bilateral Investment Treaty between the USA and the Republic of Kazakhstan; breach of fiduciary duties; unjust enrichment; misrepresentation; and negligence.

Based on the US Foreign Sovereign Immunities Act, the court dismissed the case for lack of jurisdiction.

Thereby, the decision of the District Court for the District of Columbia (USA) has fully confirmed the correctness of the approach taken by the Republic of Kazakhstan in this dispute, and corresponds with the policy of the Republic of Kazakhstan on supporting foreign investors in Kazakhstan.

The Republic of Kazakhstan in this dispute was represented by the Ministry of Justice of the Republic of Kazakhstan and the consultant of the Government of the Republic of Kazakhstan - Reed Smith LLP.