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Fair decision in favour of the Republic of Uzbekistan at International Arbitration Court
12.01.2010 11:31
Favourable investment climate has been created in Uzbekistan. The legal framework of investment activity and protection of foreign investors' rights and their investments has been formed. To a number of acts composing the legal base of the investments and their protection shall refer the laws of the Republic of Uzbekistan, "On foreign investments", "On guarantees and measures of protection of the rights of foreign investors". Moreover, Republic of Uzbekistan participates in a number of international conventions, providing legal instruments for protection of investments, and also Uzbekistan has bilateral agreements with many countries on protection and promotion of investments.
Republic of Uzbekistan guarantees effective protection to foreign investments and in good faith fulfils its obligations under international agreements including investment protection agreements.
Besides, there are cases when the foreign companies put their efforts to involve Republic of Uzbekistan into disputes related to their commercial activity. As such an example, the claim of "ROMAK S.A." to the International Arbitration Court vs Republic of Uzbekistan can be mentioned.
On November 26, 2009, the International Arbitration Court, acting according to UNCITRAL Arbitration rules under the administrative support of Permanent Court of Arbitration, (the Hauge, the Netherlands) rendered an award in favour of Republic of Uzbekistan and once again acknowledged the adherence of the Republic of Uzbekistan to the principals of the International Law, principles of justice.
Dispute against Republic of Uzbekistan was initiated by Swiss Company "Romak S.A.", specializing in sale of grain and cereal products. Paris was the place of arbitration.
"Romak S.A.", having entered into contractual relations with Uzbek and Kazakh Companies, supplied grain to the Uzbek enterprises. In view of dispute arisen with Uzbek companies, "Romak S.A." have applied to GAFTA to settle the dispute through arbitration. The Arbitration Court GAFTA has rendered an award in favour of "Romak S.A." and ordered Uzbek Company "Uzdon" to pay the price of the contract on behalf of "ODIL" Company.
Swiss Company applied to the corresponding court of the Republic of Uzbekistan in 2000 aiming at enforcement of the GAFTA Arbitration Court award under the New York Convention on recognition and enforcement of foreign arbitral awards. The Economic Court of Tashkent rejected the "Romak S.A." application, due to the non-correspondence of the submitted application to the New York Convention.
Instead of re-applying in correspondence with the New York Convention requirements, "Romak S.A." brought an unjustified claim to the International Arbitration Court against the Republic o