Bishkek, Sept. 16, 2021 . / Kabar / . A hearing was held in a New York City court on Sept. 15 to consider Centerra's motions, including a $1 million per day sanction against the Kyrgyz Republic.
According to Kumtor Gold Company, the court rejected Centerra's arguments and motion to impose sanctions on Kyrgyzstan on the grounds that the court's jurisdiction is challenged by the Kyrgyz side on appeal.
Besides, the court did not have confirmed personal jurisdiction over Kyrgyzstan, and none of the actions asserted now violate a prior "automatic stay" order of the court.
As for an application for sanctions, the court held that none of Kyrgyz Republic's actions violated the automatic stay because the extension of the temporary external administration was a continuation of the status quo, the deferral and document requests by Kyrgyz courts were not decisions on the merits, and the criminal investigations fell within the relevant exceptions.
In May 2021, the Kyrgyz Parliament heard the report of the state commission on the audit of Kumtor Gold Company and instructed the Cabinet of Ministers to temporarily introduce external management at the company.
The State Commission stated that Centerra Gold Inc. (Canada) must pay Kyrgyzstan $4 billion 252 million in taxes and environmental sanctions. Previously, the Oktyabrsky District Court of Bishkek ordered the Canadian company to pay the state KGS 261 billion 719 million 674 thousand for violating environmental regulations.
The company denied the charges and filed several lawsuits against the Kyrgyz Government in international courts
Later, subsidiaries of Centerra Gold Inc. - Kumtor Gold Company and Kumtor Operating Company - filed a lawsuit in the Southern District of New York.
Kumtor is the largest gold mine in Kyrgyzstan. It is developed by the Canadian company Centerra Gold Inc. The republic owns 26% of the company. The company provides 10% of Kyrgyzstan's GDP and 20% of industry.
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