The Ministry of Justice of Kazakhstan has stated that the decision of the Astana International Financial Centre (IFC) court regarding Naftogaz's claim against Gazprom will not be enforced in Kazakhstan. The court ruling was made unilaterally and has not yet entered into force, Justice Minister Erlan Sarsembayev said.
Basic context
Minister of Justice of Kazakhstan Erlan Sarsembaev commented on the ruling of the IFCA court, which allowed seizure of Gazprom's assets« on the claim of Naftogaz. According to Sarsembayev, this is not a final decision, but only a notice issued without the participation of the Russian side. «The defendant has the right to file an appeal, after which a full hearing will take place with the participation of both parties,» the minister explained.
He emphasised that the decision of the IFCS court will not be enforced in Kazakhstan, as there are no basic elements of jurisdictional connection with the IFCS. «Gazprom Public Joint Stock Company is not a member of the IFAC, the disputed transaction was not concluded within the centre, and the parties did not agree to refer the disputes to the IFAC court,„ Sarsembayev said.
Reasons for refusal to enforce the decision
The Minister of Justice emphasised that the Constitutional Law «On the IFC Astana» limits the jurisdiction of the court to specific categories of cases related to the centre or transferred by agreement of the parties. Kazakhstan does not recognise a judgement that does not have a clear procedural and legal basis for enforcement on its territory.
Sarsembayev reminded that Kazakhstan is a member of the New York Convention of 1958, which regulates the enforcement of foreign arbitral awards. According to the Commercial Procedure Code of the Republic of Kazakhstan, applications for enforcement are filed at the place of the dispute or the location of the defendant. Since Gazprom's location is known, it is a key reference point for enforcement.
Prospects for the trial and implications for MFCs
Erlan Sarsembayev noted that the court proceedings in the IFAC are not yet complete and the final decision will be made after considering the positions of both parties. According to him, the Ministry of Justice is working on legislative changes to the procedures for the recognition and enforcement of foreign arbitral awards in Kazakhstan.
The Minister also stressed that Kazakhstan will not become a platform for the enforcement of decisions that have no legal connection with the state or its jurisdiction. This decision affects the reputation of the IFCS as an international arbitration platform and calls into question the investment attractiveness of the centre.
Earlier, the media reported information about the decision of the IFAC court in favour of Naftogaz in the case against Gazprom, but the official position of the Ministry of Justice of Kazakhstan clearly demonstrates its unwillingness to enforce this decision in the country.
Such developments highlight the complexity of international arbitration processes and the importance of clear jurisdiction for the enforcement of judgments on a global scale. Kazakhstan currently reserves the right to defend its legal system and not to recognise awards that do not comply with its domestic law.
