Arbitration and Problems Associated With Statutes of Limitation in Kazakhstan and Uzbekistan

Limitation periods in respect of triggering an arbitration clause are generally unexplored. It is assumed that the relevant statutes of limitations applicable to suits before national courts apply equally to arbitral proceedings. This is also the author’s contention, unless otherwise agreed. There is no jurisprudence on these matters in the Central Asia republics of Kazakhstan and Uzbekistan. Problems generally arise with regard to tranche projects. In my opinion, the limitation period in respect of projects financed and executed in instalments commence on the day of execution of the last instalment or tranche, and not from the date when a particular tranche was not implemented or on the day when it should have been implemented. In case of nonpayment or non-fulfilment of other contractual duties, foreign investors should not be dissuaded from pursuing non-adversarial means to settle their dispute with the State or a local private agent. Care should be exercised in every case, particularly in the course of negotiations resulting from non-payment, to demonstrate that the creditor has not waived its rights to a suit or arbitral proceedings. These principles are particularly significant for large energy projects.