«Kyrgyzstan’s legal sovereignty» from Turkey is to be decided in the Supreme Court today

The remarkable narrative unfolding within Kyrgyzstan’s Supreme Court has been ongoing for six years and is approaching its inevitable resolution. 

A legal dispute has evolved concerning the «Vefa» shopping and entertainment center situated in the heart of Bishkek, the capital of Kyrgyzstan. This dispute involves the Turkish company JSC «Özgün İnşaat Taahhüt Sanayi Ve Ticaret» supported by the Turkish state fund, and Kyrgyz entrepreneurs from Aruu Jyldyz LLC.

*** JSC «Özgün İnşaat Taahhüt Sanayi Ve Ticaret» was nationalized by the Turkish government back in 2016.

This property was initially under the ownership of a division of JSC «Özgün İnşaat Taahhüt Sanayi Ve Ticaret» but was later legally transferred to Aruu Jyldyz LLC at the direction of the Turkish senior leadership and shareholders of JSC «Özgün İnşaat Taahhüt Sanayi Ve Ticaret».

Currently, the legitimacy of this asset transfer is a subject of dispute in court. JSC «Özgün İnşaat Taahhüt Sanayi Ve Ticaret» contends that the power of attorney for this asset transfer from Turkey was invalid, and the individuals responsible for the transfer may have been involved in a criminal offense. According to Turkey, the high-ranking official at JSC «Özgün İnşaat Taahhüt Sanayi Ve Ticaret» did not possess the authority to make such a transfer without the shareholders’ decision.

During the public hearing in the Supreme Court, the arguments presented by JSC «Özgün İnşaat Taahhüt Sanayi Ve Ticaret» were comprehensively debunked by the legal representatives of Aruu Jyldyz LLC. Crucially, they provided documents from the Republic of Turkey that confirmed the validity of the power of attorney and disproved any prior criminal conviction related to the asset transfer. Additionally, the authority of the top executives at JSC «Özgün İnşaat Taahhüt Sanayi Ve Ticaret» was reaffirmed in line with shareholder decisions and corporate records.

It was also disclosed that JSC «Özgün İnşaat Taahhüt Sanayi Ve Ticaret» had previously attempted to address this matter in a Turkish court, but their request was denied. Additionally, a vital piece of evidence provided by JSC «Özgün İnşaat Taahhüt Sanayi Ve Ticaret,» which underpinned their claims, was discredited. According to an assessment by a Turkish attorney representing Aruu Jyldyz LLC, neither the case number nor the name of the judge linked to this evidence could be located in the Turkish judicial database.

According to Aigerim Berekesheva, the Managing Partner of the International Law Firm «ILF A&A» and a member of the New York BAR Association, «several procedural violations were identified in the earlier decisions of Kyrgyzstan’s lower courts, including the disregard for Supreme Court rulings, errors in determining the fee amount, improper legal analogies, missed statute of limitations, and most significantly, a question of whether Kyrgyzstan’s courts have the jurisdiction to adjudicate such a case. This case is set to become a precedent, primarily examining whether Kyrgyz businesses can secure protection in their domestic courts, irrespective of political influences and the independence of the legal system.»

Furthermore, Aruu Jyldyz LLC’s legal team has already lodged complaints with the relevant authorities in Kyrgyzstan concerning the potential forgery of documents, the inclusion of knowingly false information in documents, or alterations that distort their actual content. They have also communicated their concerns to General Kamchibek Tashiev, Chairman of the State Committee for National Security of Kyrgyzstan, regarding a decision that appears to lack supporting evidence and may run counter to the national interests of Kyrgyzstan. This matter is currently under review. The lawyers anticipate that the repercussions for the Kyrgyzstan may extend into the realms of international relations, legal precedent, and reputation risks.

The case is currently being heard by a panel of three Supreme Court judges: Abylai Mukhamedjanov, who brings 20 years of judicial experience and has previously served as the Minister of Justice; Tursungul Chargynova, with an extensive 32-year judicial career; and Dilara Arystanbayeva, who has 24 years of judicial experience. The court has already recessed for a decision and will reconvene on November 2, 2023 after a two-week adjournment.

The legal team of Aruu Jyldyz LLC is ready to openly and candidly address all questions from journalists and interested parties during an upcoming press conference. This conference will include the participation of both national and foreign media and is scheduled to take place in Bishkek between October 31 and November 1, 2023.

Maratova Alua — the journalist