New decree of the President of the Republic of Uzbekistan dated July 24 approved establishment of the Judicial Panel for resolution of investment disputes and competition cases in the framework of the Supreme Court of the Republic of the Uzbekistan. The decree endowed the Judicial Panel with the authority to consider investment disputes arising between persons making investments in the amount of at least USD 20 million and government agencies, as well as competition cases.
If investors in investment disputes or parties to competition cases desire, their cases:
- can be considered directly by the Judicial Panel as a court of first instance;
- can be considered by the courts of Karakalpakstan, regions and Tashkent city as a court of first instance.
Important to note you that according to the Law of the Republic of Uzbekistan “On Investments and Investment Activities” investor is a subject of investment activity that invests its own and (or) borrowed funds or other attracted investment resources in objects of investment activity in order to make a profit. Moreover, according to this law, the investor is divided into two categories: domestic and foreign investors.
Besides the the Law of the Republic of Uzbekistan “On Investments and Investment Activities” stipulates that a dispute related to foreign investments and arising from the implementation of investment activities of a foreign investor in Uzbekistan is resolved through negotiations. If the parties to an investment dispute are do not reach an agreed settlement of the dispute through negotiations, such a dispute must be resolved through mediation. An investment dispute that is not settled through negotiations and mediation should be resolved by the appropriate court of Uzbekistan.
If it is impossible to resolve investment disputes in the abovementioned procedure, such dispute may be resolved through international arbitration, if an international agreement by Uzbekistan and/or an agreement concluded between the investor and Uzbekistan provides for an appropriate and valid arbitration clause.