Kazakhstan Establishes Commission for Pre-Trial Settlement of Investment Disputes

Kazakhstan has introduced a new mechanism for resolving conflicts between investors and state bodies, allowing parties to avoid court proceedings. As reported by infohub.kz, the relevant Commission for Pre-Trial Settlement of Disputes was established by order of the Prosecutor General.

According to the supervisory authority, the new body will serve as an additional tool for settling disagreements between investors and state bodies, local executive bodies, institutions, and quasi-public sector entities, provided they are directly related to investment activities.

In practice, situations may arise during the implementation of investment projects that require prompt resolution of differences. These may concern decisions, actions, or inaction of state bodies, fulfillment of obligations, creation of necessary conditions for project implementation, and other issues directly related to investment activities.

In such cases, the parties will have the opportunity to bring the dispute to a specialized platform under the Committee for the Protection of Investors' Rights, where positions are reviewed collectively with the participation of representatives from organizations directly involved in the investment sphere, the Prosecutor General's Office said.

The Commission's competence will be clearly defined. Corporate, commercial, and other civil law disputes not related to investment activities fall outside its jurisdiction.

For each specific case, a five-member commission will be formed, taking into account the circumstances of the case. It may include representatives of the Committee for the Protection of Investors' Rights, the National Chamber of Entrepreneurs 'Atameken', and the Investment Committee of the Ministry of Foreign Affairs. If necessary, relevant state bodies may also be involved.

Importantly, not only investors but also state bodies and the investment prosecutor can apply to the Commission. This approach ensures dialogue between the parties to an investment dispute and joint efforts to find a resolution, the Prosecutor General's Office emphasized.