Amsterdam & Partners Files $100M+ ICSID Claim Against Uzbekistan Over Detained Director
Event summary
- Amsterdam & Partners filed a $100M+ ICSID arbitration claim against Uzbekistan on behalf of Solfy RUS LLC and shareholder Maksim Poletaev.
- The dispute stems from a 2019 joint venture with Uzbekistan's National Bank over instalment-card technology.
- Uzbek authorities detained Solfy RUS director Uktam Khasanov for five months without trial.
- The claim alleges five treaty violations including unfair treatment and unlawful expropriation.
- Provisional measures seek Khasanov's release and suspension of criminal proceedings.
The big picture
This case highlights the risks foreign investors face in Uzbekistan, particularly when dealing with state-owned entities. The dispute pattern suggests systemic issues in protecting foreign investments, which could deter future FDI. The $100M+ claim size indicates significant financial exposure for Uzbekistan if the tribunal rules against it.
What we're watching
- Governance Dynamics
- How Uzbekistan's treatment of foreign investors will affect its reputation as an emerging market destination.
- Regulatory Headwinds
- Whether ICSID will grant provisional measures and the potential impact on similar disputes.
- Execution Risk
- The pace at which the arbitration proceeds and whether Uzbekistan will engage in settlement negotiations.