Experience

Oil & Gas Disputes

Provided expert support to a consortium of foreign investors exploring an oil and gas field in Kazakhstan regarding an ongoing pricing dispute under a gas sale and purchase agreement. The dispute arose from a significant increase in the trunk gas pipeline transportation tariff imposed by the Kazakhstan government, which substantially impacted the price of gas supplied under the agreement.

Provided expert support in a London-seated arbitration to a US MINING COMPANY on issues related to subsoil use and securities regulations. The dispute concerned the alleged issuance of shares without the required permissions from Kazakh authorities. Our detailed analysis and arguments helped lead counsel secure a favorable settlement agreement.

Provided pre-arbitration advice to a EUROPEAN ENERGY STAKEHOLDER regarding an agreement on oil and gas exploration in the Russian Federation. The analysis focused on whether the contract terms were binding under Kazakh law, requiring a potential investment of hundreds of millions of dollars. Our assessment offered a new perspective, potentially saving the client over half a billion US dollars.

Construction Disputes

Represented a LARGE EUROPEAN CONTRACTOR in a Stockholm-seated arbitration under the SCC rules against the employer concerning a contract for a large road reconstruction financed by the EBRD. The contract was based on the FIDIC Red Book Conditions. The dispute arose concerning non-payment of amounts certified by the engineer under the contract. The main issues in dispute were concerned with the contract price escalation provisions, specifically, the base value for a material to apply the formulae prescribed by those provisions.

Represented a LARGE AZERBAIJANI CONTRACTOR in a Stockholm-seated arbitration under SCC rules against the employer concerning a contract for a major road reconstruction project financed by the EBRD. The contract was based on FIDIC Conditions. The dispute involved various issues, including force majeure related to the COVID-19 pandemic, challenges to the finality of the engineer's determination, employer fault in project delays, and other contentious matters.

Advised a LARGE FOREIGN INVESTOR on contentious Kazakh and choice-of-law issues related to the construction of trunk and flow pipelines under an EPC contract at a major oil and gas field in Kazakhstan.

Represented a MAJOR CONSTRUCTION CONTRACTOR in a multimillion-dollar dispute with a client related to alleged defects in construction work, attempted use of a guarantee for a defect notification period, and other issues.

Represented A MAJOR CONSTRUCTION CONTRACTOR in several multimillion-dollar disputes with several developers, a landowner, and the state registration authority.

Represented A MAJOR CONSTRUCTION CONTRACTOR in a dispute with a local subcontractor related to works and claims under a subcontract agreement.

A MAJOR CONSTRUCTION CONTRACTOR in a dispute with several individuals and the state registration authority in connection with disputed title to apartments (worth several million dollars) and registration of the title.

Represented a MAJOR CONSTRUCTION CONTRACTOR in a dispute with a developer over a failure to pay over US$40 million for construction work.

Advised a CONFIDENTIAL CLIENT on a major litigation matter related to engineering, procurement, and construction issues.

Represented the local subsidiary of a MAJOR INDIAN ENGINEERING CONSTRUCTION COMPANY in multiple court cases, including proceedings before the Supreme Court of the Republic of Kazakhstan, spanning nine years. The disputes arose from various agreements related to the construction of export pipelines at the Kashagan and Karachaganak fields, where the company acted as both general contractor and subcontractor under a contract with a leading international energy operator.

Provided expert support to a EUROPEAN CONSORTIUM OF CONSTRUCTION COMPANIES on a contract for the Western Europe-Western China International Transit Corridor project under FIDIC Pink Book Conditions. Key issues included: (1) the contractual impact of the Kazakhstani Tenge depreciation; (2) the employer's refusal to pay additional price escalation amounts due to budget constraints; and (3) the legal interpretation of the engineer's instruction to modify the performance guarantee. Additionally, advised on the arbitration clause's validity, given the lack of a clear choice of rules, institution, or seat.

Provided expert support in a Dubai-seated arbitration to a GLOBAL MULTIDISCIPLINARY CONSULTANCY regarding disputes under a FIDIC Yellow Book contract for a major mixed-use development in Astana, Kazakhstan. The contentious issues involved complex questions of contract law, construction, licensing, project management, and engineering regulations.

Provided expert support in a Paris-seated arbitration to an AUSTRIAN PLANT ENGINEERING GROUP regarding disputes under a FIDIC Yellow Book contract for the design, manufacture, supply, and installation of electromechanical equipment for a hydropower plant in Kazakhstan. We advised on design liability issues under Kazakh law, specifically whether the client was considered a licensed designer under Kazakh regulations or responsible only for preliminary design work exempt from licensing requirements. Our legal opinion proved helpful during the arbitral hearings, according to the client.

Advised a KOREAN CONSTRUCTION COMPANY on contentious issues related to the construction and commissioning of a gas-filling compressor station.

Contractual and Commercial Disputes

Represented a LARGE KOREAN CONGLOMERATE in the Kazakhstan Supreme Court proceedings related to a multi-million sale of the sale of a company and several land plots.

Advised a GLOBAL OIL AND GAS COMPANY on a potential multimillion-dollar claim by its contractor arising out of a customs dispute involving the contractor.

Advised an OILFIELD SERVICES COMPANY in a dispute related to the recovery of leased equipment from a lessee.

Represented a MAJOR FINANCIAL INSTITUTION in cross-border litigation against a large Kazakh construction company, involving parallel proceedings in Russian and Kazakh courts. The dispute arose from the principal’s claim to terminate a USD 30 million counter-guarantee issued in favor of an Indian bank. The case was settled.

Acted as a claimant-appointed expert in an English court case concerning the recovery of Kazakh mining assets allegedly misappropriated by the former directors and controllers of the companies. The case was settled shortly after the submission of the claimant's expert witness statement.

Provided expert support in preparation for court proceedings in New Zealand regarding the recovery of debt arising from the breach of profit-sharing obligations under a Simple Partnership Agreement. The expert advice covered various substantive and procedural aspects of the case, including the analysis of a prior Kazakhstan law judgment, the potential for summary judgment in New Zealand, and alternative strategies. This advice enabled lead counsel to develop an optimal strategy for defending the client’s interests.

Environmental and Regulatory Disputes

Advised an OPERATOR UNDER THE PRODUCTION SHARING AGREEMENT on a multi-billion-dollar arbitration over cost recovery, environmental fines, and production shortfalls.

Advised an OPERATOR UNDER THE PRODUCTION SHARING AGREEMENT on a complex multi-billion-dollar environmental dispute related to the open-air storage of sulfur.

Represented an OPERATOR UNDER THE PRODUCTION SHARING AGREEMENT in a lawsuit filed by a territorial division in the area of environmental protection, demanding the suspension of wastewater discharge generated during production activities. The claim was denied in full.

Represented an OPERATOR UNDER THE PRODUCTION SHARING AGREEMENT in a number of civil and administrative cases related to the alleged violations of environmental legislation during commissioning activities (including in relation to the alleged damage caused by a number of episodes of gas flaring). The Department of Ecology revised (significantly reduced) the requirements for the amount of damage to be recovered.

Represented MAJOR FOREIGN OIL AND GAS COMPANY in a lawsuit appealing the results of the state control (the potential amount of additional charges, damages and fines could amount to about 2 billion tenge). The company's claim was satisfied, the prescription was declared illegal and canceled in the relevant part.

Represented MAJOR DRILLING COMPANY in cases involving the revision of previously issued judicial acts on the recovery of damages in connection with newly discovered circumstances.

Under the instructions of a MAJOR DRILLING COMPANY, together with the criminal lawyer (‘advokat’) worked on the termination of a criminal case initiated under Article 329 (Pollution of Atmosphere) of the Criminal Code of the Republic of Kazakhstan. The case was terminated.

Represented MAJOR FOREIGN OIL AND GAS COMPANY in court in a dispute with the Department of Ecology over access to sampling sites.

Advised an OPERATOR UNDER THE PRODUCTION SHARING AGREEMENT on compliance with the requirements of the current environmental legislation and legislation on subsoil and subsoil use in terms of financial security for liquidation activities.

Within the framework of the transaction on acquisition of a share in the contract for subsurface use (extraction of solid minerals), advised FOREIGN INVESTOR on a number of issues related to the subsurface user’ landfills (availability and sufficiency of financial support for liquidation measures, verification of approvals and permits in terms of construction and operation).

Advised INTERNATIONAL ENVIRONMENTAL CONSULTING on compliance of international standards with the requirements of Kazakh legislation regarding the seizure of land for state needs in connection with a major project involving resettlement of a village.

Advised a LARGE SUBSURFACE USER on a number of issues regarding liability for historical wells and historical pollution within the contract area.

At the instructions of THE WORLD BANK, TOGETHER WITH THE MINISTRY OF ENERGY OF THE REPUBLIC OF KAZAKHSTAN participated in the development of draft amendments to the legislation on subsoil and subsoil use in terms of flaring sour gas, presenting draft amendments to the working group and to interested parties.

Advised an OPERATOR UNDER THE PRODUCTION SHARING AGREEMENT on various matters related to revocation by the authorized body of a gas flaring permit and on judicial and other actions for suspension of the revocation effective date.

Advised a MAJOR OIL AND GAS COMPANY in several interrelated disputes related to sanitary and anti-fire regulations.

Advised a MAJOR OILFIELD SERVICES PROVIDER on undergoing an inspection and subsequent investigation by state authorities related to an alleged oil spill.

Advised a MAJOR OILFIELD SERVICES PROVIDER in a dispute related to an attempt by state authorities to close down a work camp supporting a large oil field for alleged violations of sanitary standards.

Advised a FOREIGN AIRCRAFT PRODUCER on its dispute regarding state procurement rules.

Represented an OPERATOR UNDER THE PRODUCTION SHARING AGREEMENT under the production sharing agreement in a series of civil and administrative cases related to the dispute with the environmental authority regarding the alleged damage caused by offshore and onshore gas-flaring events occurred during commissioning procedures.

Professional Malpractice Disputes

Represented a top ten largest Kazakhstan bank in a London-seated evidence-heavy commercial arbitration under the UNCITRAL Rules in a professional negligence dispute with the bank's former consultants, which arose under the Kazakh, English, and the US laws, and was based on allegedly futile promises given by the consultants.

Advised a "BIG FOUR" AUDITING FIRM on a multimillion-dollar claim by a largebank asserting a breach of contractual obligations and audit standards.

Defended a "BIG FOUR" AUDITING FIRM in a Kazakhstan court against a claimbrought by a large state-owned industrial company asserting breach of contractual obligations and audit standards.

Advised a "BIG FOUR" AUDITING FIRM on an inspection by the Office of the Public Prosecutor related to an audit of a large bank.

Represented an INDIVIDUAL on a medical malpractice claim against a local clinic tried in Kazakhstan courts.

Customs Disputes

Represented a GLOBAL FAST FASHION COMPANY (and its seven subsidiaries) on several interrelated multi-million-dollar customs disputes related to royalties for know-how, IT, and company name.

Represented a GLOBAL CONSUMER GOODS COMPANY in several interrelated disputes with the customs authorities, pertaining to multimillion-dollar claims against the company in connection with customs classification of multicomponent goods.

Represented a GLOBAL OIL AND GAS COMPANY in several interrelated disputes with the customs authorities, pertaining to multimillion-dollar claims against the company and its contractor in connection with the issue of the proper declarant (importer of record) and other issues.

Represented a GLOBAL CONSUMER GOODS COMPANY in a dispute with the customs authorities, pertaining to multimillion-dollar claims against the company in connection with customs duties and penalties related to royalties.

Represented a GLOBAL FOOD AND BEVERAGE COMPANY in a dispute with the customs authorities, pertaining to multimillion-dollar claims against the company in connection with customs duties and penalties related to royalties.

Represented a LARGE OIL PRODUCTS COMPANY in a dispute with the customs authorities, pertaining to multimillion-dollar claims against the company in connection with customs duties and penalties related to classification of goods for customs purposes.

Represented a KAZAKHSTAN SUBSIDIARY OF A MAJOR FOREIGN COMPANY in a dispute with the customs authorities, pertaining to excise duties.

Tax Disputes

Represented a LARGE OIL AND GAS ENGINEERING AND INFRASTRUCTURE COMPANY in a dispute with the tax authorities, pertaining to multimillion-dollar tax claims against the company in connection with disallowance of local branch expenses.

Represented a SMALL OIL AND GAS ENGINEERING AND INFRASTRUCTURE COMPANY in a dispute with the tax authorities, pertaining to multimillion-dollar tax claims against the company in connection with disallowance of head office general and administrative expenses.

Represented ONE OF KAZAKHSTAN'S LEADING OIL PRODUCERS in a series of multimillion-dollar lawsuits with the tax authorities over export customs duty on crude oil.

Cross-Border Restructuring and Rehabilitation

Represented a CONSORTIUM OF MAJOR INTERNATIONAL BANKS AND INVESTMENT FUNDS in Kazakhstan courts in a four-year litigation concerning a debt restructuring dispute worth hundreds of millions of dollars. The case involved complex issues related to the restructuring of a major financial institution's debt and was eventually settled.

Provided expert support to counsel for a MAJOR FINANCIAL INSTITUTION on complex cross-border restructuring issues in a case before the English High Court of Justice. The advice focused on the legal effects of the restructuring in the UK, Turkey (through recognition), and Kazakhstan. The expert opinion addressed intricate private international law issues, including altering parties’ rights under a contract initially governed by English law through a Kazakh restructuring process. The expert advice played a critical role in the client successfully challenging the jurisdiction of the English court, with the court ruling in favor of the client’s application.

Represented a LARGE UK BANK in the rehabilitation procedure of a major Kazakh agricultural organization, securing the lender’s rights under a credit facility and hedging transactions.

Choice of Law and Jurisdictional Competition

Appointed as a defendant-appointed expert in a case before the 430th District Court, Hidalgo County, Texas, USA, involving complex questions of Kazakh family and inheritance law, as well as choice-of-law issues. The expert affidavit played a key role in addressing these matters.

Appointed as a claimant-appointed expert in a case before the Russian courts involving contentious issues of Kazakh law, including the choice of governing law, the scope of a jurisdictional clause, and its applicability to non-contractual disputes.

Investment Arbitration

Acted as an investor-appointed expert witness in an ICSID arbitration case against a sovereign state. The scope of the expert testimony included complex issues of Kazakh procedural and substantive law, as well as enforcement proceedings in the context of alleged denial of justice and judicial expropriation. The tribunal ultimately agreed with the investor-appointed experts on all disputable questions of Kazakh law and ruled in favor of the investor.

Provided continued expert advice to investor’s counsel on various issues of Kazakh law, including the interpretation of controversial provisions of the 1994 Foreign Investments Law of the Republic of Kazakhstan, in support of an UNCITRAL investment arbitration and the ensuing set-aside proceedings before the English courts.