Arbitration in Kazakhstan: how it works and how it differs from court

Is arbitration legal in Kazakhstan

Yes. The Law “On Arbitration” expressly allows companies and individuals to refer disputes arising from civil law relations to arbitration. The same Law sets the requirements for arbitrators: at least 30 years of age, higher education, at least five years of professional experience, and independence from the parties. A sole arbitrator and the presiding arbitrator of a tribunal must be lawyers. Judges, civil servants and members of parliament working on a permanent basis cannot serve as arbitrators.

The Arbitration Chamber of Kazakhstan, an association of arbitral institutions and arbitrators, keeps the register of arbitrators of the permanent arbitral institutions that are its members. The Atameken Arbitration Center is a member of the Chamber. Every permanent arbitral institution must publish its rules, address and register of arbitrators.

The Atameken Arbitration Center is a permanent arbitral institution: it has approved Rules and its own register of arbitrators. How such an institution differs from arbitration set up for a single dispute is explained on the commercial arbitration page.

Which disputes can be referred to arbitration

Almost any contractual business dispute: supply, construction and other works contracts, lease, leasing, sale and purchase of ownership interests, services, foreign trade contracts. Arbitration hears disputes of companies, entrepreneurs and individuals, including foreign ones.

The law reserves some disputes for state courts only: bankruptcy, disputes affecting the interests of minors, persons lacking legal capacity or with limited legal capacity, certain disputes between banks and individuals, and several other categories. The full list is given on the arbitration agreement page. Disputes with state bodies, state enterprises and companies in which the state directly or indirectly owns 50% or more of the voting shares require the consent of the authorized body.

How arbitration differs from a state court

You can go to court without the respondent’s consent, but to arbitration only by agreement of the parties. In return, the parties get what a court does not offer: they choose the arbitrators and the language of the proceedings themselves, hearings are held in private, and the award is published only with their consent and without their names. There is no appeal or cassation, and the dispute ends with a single award. A detailed comparison, including the weak points of arbitration, is given on the commercial arbitration page.

How to start arbitration

1. Check the contract. If it contains an arbitration clause, the claim is filed with the arbitral institution named in the clause. If there is no clause, invite the counterparty to sign an arbitration agreement.
2. Prepare a statement of claim. At the Atameken Arbitration Center it is filed in Kazakh or Russian. If the parties have agreed on English as the language of the proceedings, the case is conducted in English. Sample statements of claim are available on the website.
3. Pay the registration fee and the arbitration fee. The arbitration fee depends on the amount in dispute and can be calculated with the calculator.
4. Choose an arbitrator. The parties choose arbitrators, including from the Center’s register. If a party does not make its choice in time, the arbitrator is appointed by the head of the Center.
5. Take part in the proceedings. The Rules of the Center allow up to 60 days for the case from the formation of the arbitral tribunal. For complex cases the time limit is extended.

If you disagree with the award

There is no review on the merits. Within one month from the date of receiving the award, a party may apply to the court to set it aside, but only on the grounds listed in Article 52 of the Law. They include invalidity of the arbitration agreement, the tribunal exceeding the scope of the agreement, improper notice to a party, a breach of procedure, and conflict with public policy. The court examines only these grounds and has no power to reassess the evidence.

Review on the basis of newly discovered circumstances is also possible, for example where a court verdict has established that documents in the case were forged. The application is filed with the same arbitral institution.

How to enforce the award

The award is performed within the period set by the arbitral tribunal or, if no period is set, immediately. If the debtor does not pay, the creditor applies to the court for a writ of execution, and then private and state bailiffs take over. The costs of enforcement are borne by the debtor.

Abroad, the award is enforced under the New York Convention 1958. It has 172 contracting states, and Kazakhstan acceded to it in 1995. In Kazakhstan, a court may refuse recognition and enforcement of any arbitral award, Kazakh or foreign, only on the grounds listed in Article 57 of the Law.

International arbitration in Kazakhstan

Disputes with foreign companies are heard under the same law. The parties may agree on a foreign arbitrator, English as the language of the proceedings, and the law of another country as the applicable law. Documents not in the language of the proceedings are submitted with a notarized translation.

The Atameken Arbitration Center operates in Astana under the National Chamber of Entrepreneurs of the Republic of Kazakhstan “Atameken”. The Center’s register lists 84 arbitrators from Kazakhstan and other countries.

Write to the SecretariatCalculate the fee