In 2019 the AIFC Court and International Arbitration Centre (further – “IAC”) considered five cases. This was an outstanding achievement compared to the experience of similar common law financial centre courts and international arbitration centres at this stage of their operations.

Earlier this year the AIFC Court considered its first litigation and gave judgment in a small claims contract non-payment dispute involving an AIFC Participant and a foreign party. All enforcement measures available in Kazakhstan were implemented quickly and directly between the AIFC Court and the Kazakhstan enforcement authorities. This case was managed electronically from initiation to completion. The IAC recently received its first arbitration case and hosted three mediation cases. All cases have been managed quickly applying the best international standards of case management and without charge to the parties.

Following a comprehensive promotions campaign in 2019 and meetings with senior lawyers and executives at corporations in Kazakhstan, the wider Central Asia region and globally, the AIFC Court and IAC were included in a minimum of 1300 business contracts for future dispute resolution purposes under those contracts. It is expected as normal practice for there to be a lead time before disputes will arise under such contracts and the AIFC Court and IAC are ready and able to administer any future commercial disputes under these and other contracts.

The AIFC Court and IAC launched their eJustice system in 2019 to enable parties without charge to have their commercial disputes resolved electronically using the most up to date digital technology. Their world class premises at the EXPO-2017 site were officially opened by the President of Kazakhstan, Kassym-Jomart Tokayev. New international standard services were launched for judicial mediation at the AIFC Court and a special arbitration-mediation or “arb-med” procedure at the IAC. The AIFC Court and IAC signed 17 cooperation agreements with leading dispute resolution centres, law societies and business associations in Kazakhstan, the UK and Asia, significantly raising their profile and international recognition.

More than 300 Kazakh national law students, lawyers, and academics were trained by the AIFC Court and IAC to ensure they have the common law dispute resolution skills that are necessary to represent clients in disputes at the AIFC Court and IAC. For this purpose the AIFC Court and IAC partnered with Cambridge University, leading advocates from London, and the Centre for Effective Dispute Resolution in London.

The Registrar and Chief Executive of the AIFC Court and IAC, Mr. Christopher Campbell-Holt, commented:

“2019 has been a very productive year of achievement for the AIFC Court and IAC. Ahead of expectations for our type of new court and arbitration centre we have received and managed several cases and achieved quick enforcement of our first case at the AIFC Court. We have developed and launched the very best digital technology. We have hired the best Kazakh national Registry staff and trained them to international standards with our partners in London and Singapore. We have launched outstanding new services and raised regional and international recognition with 17 cooperation agreements signed. Our dispute resolution is quick, accessible, cost effective, impartial, and above all, incorruptible. We have exciting plans for 2020 and look forward to our continued success as we strive to be the number one choice for commercial dispute resolution in Central Asia.”

Reference:

AIFC. The AIFC was established on the initiative of the President of the Republic of Kazakhstan Nursultan Nazarbayev. In December 2015 President Nazarbayev approved the Constitutional Statute “On the Astana International Financial Centre” (AIFC). The aim of the AIFC is to establish a leading international centre for financial services. The objectives of the AIFC are to attract investment into the economy through the establishment of an attractive environment for investment in financial services, develop local capital markets, ensuring their integration with the international capital markets. https://aifc.kz/

The AIFC Court. The AIFC Court is an independent legal entity. It has its own procedural rules modelled on English common law procedures and leading international practice. The AIFC Court is separate and independent from the courts of the Republic of Kazakhstan. It consists of two tiers: a Court of First Instance, which includes a specialist division known as the Small Claims Court; and a Court of Appeal. It has exclusive jurisdiction over disputes arising out of the activities and operations of the AIFC and jurisdiction in the case of other disputes in which all parties agree in writing to give the AIFC Court jurisdiction. It does not have jurisdiction in relation to any disputes that are of a criminal or administrative nature. It applies the most up to date and efficient case management practices.

The International Arbitration Centre (IAC). The International Arbitration Centre (IAC) is an independent legal entity. It has its own procedural rules modelled on best international practice. It has its own panel of leading international arbitrators and mediators having many years of arbitration and mediation experience in commercial law, including oil and gas, trade, construction, energy, financial services, banking, Islamic finance, insurance, and intellectual property. IAC arbitration awards are recognised and enforceable in Kazakhstan and internationally.

Three judges have been appointed to the AIFC Court: The Rt. Hon. The Lord Mance, Mr. Alan Maclean QC (AIFC Small Claims Court) and Mr. Charles Banner QC (AIFC Small Claims Court).

Lord Mance was the Deputy President of the Supreme Court of the United Kingdom. He is currently Chair of the International Law Association, Chair of the Conduct Committee of the House of Lords, and a member of the Judicial Integrity Group. He has many years of experience in commercial law, public and private international law and European law. He was a founder director of the Bar Mutual Indemnity Insurance Fund and he was the Chair of various Banking Appeals tribunals in London. He also has significant arbitrator experience. He was educated at the University of Oxford.

Mr. Alan Maclean QC is an experienced QC, practising from Blackstone Chambers in London. He was educated at the University of Oxford, where he took a double First in PPE, and Harvard University, where he was a Kennedy Memorial Scholar. He was called to the Bar, first in his year, in 1993 and was appointed Queen’s Counsel in 2009. He has a broad practice in the fields of commercial litigation and arbitration, public law, competition law, private international law and European law.

Mr. Charles Banner Q.C. is a barrister based at Landmark Chambers in London and Birmingham. He practises in England & Wales (where he was called to the Bar in 2004) and Northern Ireland (where he was called to the Bar in 2010), as well as internationally. He was appointed Queen’s Counsel in 2019. He has a broad practice, principally focused on public and private law issues relating to development and infrastructure (particularly in the energy, transport, housing and tourism sectors), but also covering government & regulation and commercial dispute resolution more generally. He is recommended in a total of 8 practice areas by Chambers & Partners UK Bar and Legal 500 UK Bar, and has been the recipient of multiple legal industry awards. He was educated at Oxford University.

Reference:

AIFC. The AIFC was established on the initiative of the President of the Republic of Kazakhstan Nursultan Nazarbayev. In December 2015 President Nazarbayev approved the Constitutional Statute “On the Astana International Financial Centre” (AIFC). The aim of the AIFC is to establish a leading international centre for financial services. The objectives of the AIFC are to attract investment into the economy through the establishment of an attractive environment for investment in financial services, develop local capital markets, ensuring their integration with the international capital markets. https://aifc.kz/

AIFC Court. The AIFC Court is an independent legal entity. It has its own procedural rules modelled on English common law procedures and leading international practice. The AIFC Court is separate and independent from the courts of the Republic of Kazakhstan. It consists of two tiers: a Court of First Instance, which includes a specialist division known as the Small Claims Court; and a Court of Appeal. It has exclusive jurisdiction over disputes arising out of the activities and operations of the AIFC and jurisdiction in the case of other disputes in which all parties agree in writing to give the AIFC Court jurisdiction. It does not have jurisdiction in relation to any disputes that are of a criminal or administrative nature. It applies the most up to date and efficient case management practices.

International Arbitration Centre (IAC). The International Arbitration Centre (IAC) is an independent legal entity. It has its own procedural rules modelled on best international practice. It has its own panel of leading international arbitrators and mediators having many years of arbitration and mediation experience in commercial law, including oil and gas, trade, construction, energy, financial services, banking, Islamic finance, insurance, and intellectual property. IAC arbitration awards are recognised and enforceable in Kazakhstan and internationally.

In Moscow, the AIFC Court and IAC Registrar and Chief Executive signed MoU with the Russian Arbitration Association (“RAA”), which unites legal practitioners, law firms and academics across the Russian Federation.

The above initiative expands the AIFC Court and IAC’s cooperation and international recognition among the legal and arbitration community in Russia and will assist with the positioning of the AIFC Court and IAC as the leading dispute resolution platform in the region. Our cooperation will include joint projects in legal education and training, new dispute resolution research and development initiatives, and cross promotion of events, activities and publications.

The Memorandum of Understanding with the RAA was signed within the framework of a special business breakfast in Moscow, where RAA members and the wider Russian legal and business community learnt about the AIFC Court and IAC as a new option for commercial dispute resolution.

Mr. Campbell-Holt stated:

“Our world-class dispute resolution platform at the AIFC is open for the wider region. We are delighted that our Russian partners have recognised our platform and agreed to cooperate with our initiative. We are confident that our cooperation will assist with the promotion and development of our arbitration services as a cost-effective and efficient alternative method to resolve commercial disputes.”

Mr. Vladimir Khvalei, RAA Chairman of the Board, added:

“What was done in Kazakhstan is amazing. The establishment of the AIFC Court and IAC is an excellent example for the whole post-Soviet area how the state could encourage foreign investments by creating world-class level court and arbitration institution.”

Reference:

AIFC. The AIFC was established on the initiative of the President of the Republic of Kazakhstan Nursultan Nazarbayev. In December 2015 President Nazarbayev approved the Constitutional Statute “On the Astana International Financial Centre” (AIFC). The aim of the AIFC is to establish a leading international centre for financial services. The objectives of the AIFC are to attract investment into the economy through the establishment of an attractive environment for investment in financial services, develop local capital markets, ensuring their integration with the international capital markets. https://aifc.kz/

The AIFC Court. The AIFC Court is an independent legal entity. It has its own procedural rules modelled on English common law procedures and leading international practice. The AIFC Court is separate and independent from the courts of the Republic of Kazakhstan. It consists of two tiers: a Court of First Instance, which includes a specialist division known as the Small Claims Court; and a Court of Appeal. It has exclusive jurisdiction over disputes arising out of the activities and operations of the AIFC and jurisdiction in the case of other disputes in which all parties agree in writing to give the AIFC Court jurisdiction. It does not have jurisdiction in relation to any disputes that are of a criminal or administrative nature. It applies the most up to date and efficient case management practices.

International Arbitration Centre (IAC). The International Arbitration Centre (IAC) is an independent legal entity. It has its own procedural rules modelled on best international practice. It has its own panel of leading international arbitrators and mediators having many years of arbitration and mediation experience in commercial law, including oil and gas, trade, construction, energy, financial services, banking, Islamic finance, insurance, and intellectual property. IAC arbitration awards are recognised and enforceable in Kazakhstan and internationally.

Russian Arbitration Association (RAA). The Russian Arbitration Association (RAA) was founded in April 2013 in Moscow to unite legal practitioners, law firms and academics. The Association represents broad interests of the business, legal and education communities involved in the alternative dispute resolution in Russia and the CIS. The main objective of the Association is cooperation in the development of arbitration in the Russian Federation and the CIS countries, popularizing Russia as a venue for arbitration, promotion of Russian arbitrators at national and international levels within the arbitration context, as well as the promotion of foreign arbitrators interested in arbitral proceedings, directly or indirectly relating to Russia and the CIS countries. RAA is an observer with the UNCITRAL Working Groups II (Dispute Resolution) and Working Group III (International Investment Disputes). www.arbitration.ru