Mağdenli Yer Hizmetleri ve Taşıma Anonim Şirketi v. Kazakhstan

Case summary

At a glance

Parties: Mağdenli Yer Hizmetleri ve Taşıma Anonim Şirketi (Turkey) v. the Republic of Kazakhstan
Forum and rules: International Chamber of Commerce (ICC) arbitration; hearing in Paris
Sector: Airport services: fuel supply, cargo and helicopter services
Outcome: All claims dismissed (8 November 2018), as reported in Kazakhstan's press release.
Amount: Claimed: about USD 16 million plus interest and costs. Awarded: nothing. The claimant was ordered to bear the Tribunal's expenses and the administrative expenses, about USD 500,000.

The dispute

The claimant is a Turkish company. Together with JSC \"SPK Atyrau\", it founded JSC \"ATMA Atyrau Airport and Transportation\". In March 2015 it started ICC arbitration against Kazakhstan. It claimed that Kazakhstan, by setting up JSC Atyrau International Airport, had expropriated the fuel supply, cargo and helicopter services. It also claimed that Kazakhstan had to pay it back for additional investments it said it had made in ATMA. The only published document is a press release from Kazakhstan's Ministry of Justice. That release does not set out the treaty or other legal basis of the claim, or Kazakhstan's defences in detail.

Key holdings

No expropriation. According to Kazakhstan's press release, the Tribunal found that the Government took no action to expropriate the fuel supply, cargo and helicopter services. Press release, p. 1
Kazakhstan had no obligation to compensate the claimant for its alleged additional investments in ATMA. The Government at no time prevented the claimant from recovering those investments. Press release, p. 1
The press release reports that the Tribunal found Kazakhstan's judicial system did not violate the rights of foreign investors and complied with the principles of legality and justice. Press release, p. 1
Costs: the claimant must bear all the Tribunal's expenses and the administrative expenses, about USD 500,000. Press release, p. 1

Procedural history

March 2015The claimant starts ICC arbitration against Kazakhstan.
4 June 2018Main hearing held at the ICC in Paris.
8 November 2018Award: all claims dismissed.
12 November 2018Kazakhstan's Ministry of Justice publishes a press release on the award.