Stati Parties v Republic of Kazakhstan: Significant wins for the Statis and their creditors in Sweden and the USA

On 14 June 2023, the Swedish Supreme Court refused Kazakhstan permission to appeal a 16 January 2023 decision of the Swedish Court of Appeal, confirming conclusively that the Statis are entitled to enforce against Sovereign Wealth Fund assets seized in the jurisdiction and valued at approximately US$76 million. The Court of Appeal’s decision is discussed further in our earlier post.

Similarly, on 13 June 2023, the Appellate Division of the Supreme Court of New York unanimously affirmed a decision of 29 August 2022 dismissing Kazakhstan’s case against Argentem Creek Partners and (unusually for US proceedings) ordering Kazakhstan to pay its opponents’ costs. The earlier decision roundly dismissed Kazakhstan’s allegations that the Stati-creditor had conspired to enforce a tainted award, noting that the Swedish courts had already rejected arguments that the award was obtained by fraud.

Robert Bedford, Legal Director, commented:

Courts in the US and Sweden have affirmed important decisions dismissing Kazakhstan’s efforts to avoid obligations under international treaty and a confirmed SCC award. These are significant steps in the Statis’ ongoing enforcement action.

Astraea Group acts as Global Counsel for the Stati Parties in their ongoing, multi-jurisdictional action to enforce a US$500 million SCC arbitral award against the Republic of Kazakhstan. The team is led by Partner James Ramsden KC and Legal Director Robert Bedford.

Click below for the relevant judgments:

• Sweden, Svea Court of Appeal, 16 January 2023

• Sweden, Supreme Court, 14 June 2023

• US, Supreme Court of the State of New York, 29 August 2022

• US, Appellate Division of the Supreme Court of New York, 13 June 2023

The information provided in this article is of a general nature and does not constitute, nor should be relied on, as legal or professional advice.