The progress of enforcement proceedings by Moldovan investors Anatolie and Garbiel Stati and their companies against Kazakhstan arising out of their 2013 Swedish Chamber of Commerce award is well-publicized. But what has hitherto been less remarked upon is how these proceedings have given rise to issues concerning the interaction between the enforcement “tools” available to award creditors in different jurisdictions.

Background

In December 2013, the Stati parties obtained an SCC award of just over US$500 million against Kazakhstan. The tribunal found that Kazakhstan was liable for breaching the Energy Charter Treaty, primarily its fair and equitable treatment provisions.

Kazakhstan sought to annul the award in Sweden, the seat of the ECT arbitration, partly on the basis that the Stati parties obtained it by fraud. Their challenge was ultimately unsuccessful: the Svea Court of Appeal and the Supreme Court effectively upheld the award without examining the substance of the state’s fraud claims.

To read the remainder of this article, access the PDF.