Lawyer at the International Arbitration Court in Kazakhstan

Modern companies from various countries are increasingly turning to international cooperation, leading to a rise in the number of foreign economic contracts. This, in turn, results in an increase in disputes related to the fulfillment of obligations, the quality of goods and services, as well as other issues of international trade.

One of the key bodies dealing with the resolution of international disputes is the International Arbitration Court in Kazakhstan. This court provides an opportunity for the parties involved in a conflict to resolve their disagreements outside the judicial system, which often proves to be a faster and more effective method.

In this article, we will discuss what the International Arbitration Court in Kazakhstan is, how the arbitration process works, what nuances should be taken into account, and how to protect your interests. We will cover the main stages of arbitration proceedings, including filing a claim, selecting arbitrators, hearings, and issuing a decision.

Our lawyers have extensive experience participating in international arbitration disputes in Sweden, China, and Kazakhstan. We are familiar with all the intricacies and nuances of the workings of arbitration courts, which allows us to effectively protect our clients’ interests. Trust us, and we will help you achieve justice and protect your rights on the international stage.

What is this court and what is its jurisdiction?

The International Arbitration Court in Kazakhstan (IAC) is a permanent specialized body established for the resolution of disputes arising within the framework of international trade and investment activities.

The court’s jurisdiction includes disputes arising from civil legal relations between individuals and legal entities regardless of their place of residence or location in Kazakhstan. In other words, if you represent a French company and your contractual partner is from England, you can still choose the IAC as the body for resolving your disputes.

What are the advantages of turning to this court?

1. authority (the IAC was established in 2001 and has proven itself as a reliable institution with extensive experience in international arbitration)
2. professionalism (the IAC’s team of world-class arbitrators ensures high-quality case handling in accordance with international standards)
3. diversity (the IAC considers banking and financial disputes, relationships in the oil and gas and construction industries, disputes arising from supply contracts and international sales contracts, etc.)

What should you do for your dispute to be resolved by the IAC?

As mentioned earlier, the widely recognized principle of freedom of contract allows you to choose the International Arbitration Court in Kazakhstan as the dispute resolution body.

To do this, it is necessary to draft either an arbitration clause or an arbitration agreement. What is the difference between them?

An arbitration clause is included in the main text of your international contract, meaning you draft it during the negotiation and contract conclusion stages. Arbitration clauses are most often drafted in short-term relationships (for example, a one-time sale contract).

An arbitration agreement is a separate agreement that stands apart from the main contract. It is usually concluded after drafting the main contract. Typically, arbitration agreements are made by parties engaged in long-term legal relationships (for example, multiple supply contracts). Moreover, if you decide to choose the IAC only after a dispute has arisen with your counterparty, you will not be able to draft an arbitration clause; instead, you will need to create an arbitration agreement.

The IAC Regulations have simplified this task for you and have prepared a text for the arbitration clause that you can copy and paste into your contract.

All disputes, disagreements, and claims arising from or in connection with this Agreement, including those concerning its performance, breach, termination, or invalidity, shall be finally resolved by the International Arbitration Court “IAC,” located in the Republic of Kazakhstan, Almaty, in accordance with its Regulations, by a panel of arbitrators in a number (as chosen by the parties) of arbitrators, in (as chosen by the parties) language, at (the venue chosen by the parties) and in accordance with the norms of substantive law (as chosen by the parties).

If you decide to draft an arbitration agreement, remember that it must include:

1. the composition of the arbitration (you can choose an odd number, typically 1 or 3, but if you wish, this number can increase)
2. the language of the hearings (any: English, French, Kazakh, etc.)
3. the place of arbitration (we recommend specifying the permanent location of the IAC in Almaty to avoid additional expenses)
4. the applicable law (this depends on your preference; it can be the substantive law of any country)
5. the procedure for allocating costs (based on what you agree upon with your counterparty)
6. addresses for sending important communications (not only the legal address but also phone numbers, email addresses, and contact persons to ensure you do not miss important notifications or case materials)

Thus, by concluding an arbitration clause or agreement following this guidance, you guarantee that your dispute will be resolved by arbitrators at the International Arbitration Court in Kazakhstan.

What to do in case of a dispute?

Before initiating arbitration, an important step that initiates the entire process is the payment of the registration fee. This fee is paid only by the claimant when submitting a claim to the court. The purpose of these fees is to ensure case preparation. Remember that the registration fee is non-refundable even if the court dismisses the claim due to deficiencies and errors. Therefore, we recommend consulting professionals during the claim drafting stage to avoid losing 500 euros (the amount of registration fees for non-residents of Kazakhstan) unnecessarily.

Next, you need to submit a claim. Any claim in arbitration must necessarily contain the following elements:

• details of the parties (names, email addresses, and physical addresses)
• claims of the claimant (which violated right you seek to protect)
• reference to the jurisdiction of the IAC (why exactly the IAC should resolve your dispute)actual circumstances of the dispute (i.e., what happened)
• legal arguments (which legal norms support your position)
• the amount claimed and its calculation (the amount you are seeking from the respondent)
• attachments (all documents supporting your position)

Drafting a claim is an important and responsible process, and it is not possible to cover all its nuances in one article. If you need consulting or other assistance in drafting a competent claim, please consult professionals.

As soon as the court registers your claim, proceedings will be initiated in your case. At this stage, you,

as the claimant, must pay the arbitration fee. This fee is necessary as it serves as the remuneration for the arbitrators. The amount of the arbitration fee depends on the value of the claim and is calculated in euros. In the photo, you can see a summary scale for calculating the amount of arbitration fees.

Next, you and the respondent, your opponent, will form the composition of the arbitration. Let us remind you that the number of arbitrators is chosen at the stage of drafting the arbitration clause or arbitration agreement. If you did not do this, the number of arbitrators may be determined by the court itself. So, you can choose one arbitrator or a panel of arbitrators (in this case, you will also need to select a presiding arbitrator). If you wish to learn more about the procedure for forming the composition of the arbitration, you can read the relevant regulations or contact our specialists for clarification.

A key stage of any proceedings is the examination of the case on its merits. At this stage, each party has the opportunity to present its point of view, substantiate its claims, and refute the arguments of the opponent. The presentation of evidence plays a crucial role: you may refer to documents, witness testimonies, and expert opinions. The arbitrators ask questions to clarify positions and evaluate the submitted materials.

The International Arbitration Court in Kazakhstan offers a modern and convenient solution for parties wishing to participate in disputes – the possibility of conducting hearings in electronic format using video conferencing. This innovation ensures a high degree of accessibility and comfort, allowing participants to protect their interests without leaving their homes and without traveling to Kazakhstan.

To do this, include a provision in the text of the arbitration clause or arbitration agreement stating that the dispute between the parties may be resolved in the form of electronic arbitration proceedings. It will be necessary to provide information for setting up video conferencing (email, Skype or Zoom login, or another program, phone number).

Our specialists actively utilize this opportunity, successfully representing clients from various corners of the world. Thanks to modern technologies, geographical boundaries cease to be an obstacle for effective dispute resolution. We are confident that every client can receive qualified support and protection of their rights regardless of their location.

How to enforce a court decision?

If you successfully argued your case and managed to convince the arbitrators of your position, a decision will be made in your favor. This raises the question – how to enforce this decision?

It should be noted that when concluding an arbitration agreement in the form of a clause or contract, the parties undertake to voluntarily comply with the decision of the International Arbitration Court within the procedures and timelines established therein.

However, in practice, it is common for the losing party to refuse to voluntarily comply with the decision and evade debt repayment. In such cases, if the decision is to be enforced on the territory of Kazakhstan (for example, if the respondent’s assets are located in Kazakhstan), then such a decision is recognized as mandatory and enforced in accordance with Kazakhstan’s law “On Enforcement Proceedings and the Status of Judicial Executors.”

If the decision is to be enforced in another state, it is necessary to clarify whether that country is included in the list of states participating in the 1958 New York Convention and recognizes foreign arbitration awards. This list includes over 150 countries, including Kazakhstan, France, Great Britain, and the USA. Therefore, recognizing and enforcing an IAC decision in another state should not be difficult.

What can we offer you?

Proceedings in the International Arbitration Court in Kazakhstan may seem like a complex and confusing process. However, with competent legal support, it becomes accessible and understandable. Professional assistance from arbitration specialists is a key factor that can guarantee a successful outcome and protect your interests.

Our lawyers have extensive experience in resolving disputes of varying complexity and possess deep knowledge of both Kazakhstani law and international private law. We understand that each case is unique, and our individualized approach to each client allows us to effectively address the tasks at hand.

Additionally, we provide multilingual support – our specialists are fluent in both English and Russian, which facilitates comfortable communication with clients from different countries. We will support you at every stage of the proceedings, from document preparation to representation in court, allowing you to focus on the important aspects of your business. By choosing us, you choose confidence in the outcome.