12.11.2018
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RusHydro files for international arbitration against Kyrgyz Republic

October 12, 2018. Moscow, Russia. PJSC RusHydro (MOEX, LSE: HYDR; OTCQX: RSHYY) announces that it has filed for international arbitration against Kyrgyz Republic on October 31, 2018.  


In October 2018, various news sources published announcements of Kyrgyz Republic’s government agencies representatives and JSC Energeticheskiye stantsii representatives containing unreliable and misleading information on PJSC RusHydro’s arbitration against Kyryz Republic and its intention to transfer a 50% stake in CJSC Verkhne-Narynskiye GES.


In this regard, RusHydro considers it necessary to announce the following.


Any information that Bishkek has not received an official notification on arbitration proceedings is false.  The notification was submitted to the President of Kyrgyz Republic, Ministry of finance, Ministry of Foreign Affairs, the State Committee for Industry, Energy and Mining of the Kyrgyz Republic, Ministry of Justice of Kyrgyz Republic and Center of judicial representative office of the government of the Kyrgyz RepublicCenter of judicial representative office of the Government of the Kyrgyz Republic Center of judicial representative office of the Government of the Kyrgyz Republic in accordance with established procedures on January 15, 2018.


In 2018, under active involvement of Kyrgyz Republic’s representatives, an arbitration panel and administrative body (Permanent Court of Arbitration, PCA) were determined and the schedule of arbitrage proceedings was coordinated as well. In accordance with the schedule ratified by the procedural order dated September 25, 2018 PJSC RusHydro filed a request for arbitration to PCA on October 31, 2018. Kyrgyz Republic has to respond not later than April 15, 2019.


From 2016 to 2018, PJSC RusHydro has repeatedly contacted JSC Energeticheskiye stantsii, Kyrgyz National Energy Holding Company and the government of Kyrgyz Republic regarding transfer of 50% share in CJSC Verkhne-Narynskiye GES. Commitment to accept the above-mentioned shares by JSC Energeticheskiye stantsii, the designated organization on behalf of Kyrgyz Republic is established under article 14 of the agreement on construction and maintenance of Verkhne-Narynskiy cascade of hydropower plants dated September 20, 2012 in the event of its termination. The decision to transfer RusHydro’s shares in in CJSC Verkhne-Narynskiye GES before August 8, 2016 was established in the course of negotiations between the designated representatives in Bishkek on June 2, 2016. In addition, on December 1, 2016, Jogorku Kenesh of the Kyrgyz Republic passed a resolution number 1155-VI for the Government of Kyrgyz Republic to execute transfer of PJSC RusHydro’s share in authorized share capital of the joint enterprise to JSC Energeticheskiye stantsii.


Despite the resolutions, commitments and agreements, Kyrgyz Republic is not taking any measures to accept RusHydro’s share in CJSC Verkhne-Narynskiye GES by JSC Energeticheskiye stantsii. Therefore, any announcements that PJSC RusHydro did not officially notify the Kyrgyz Republic on its intentions regarding the shares in CJSC Verkhne-Narynskiye GES are inconsistent and can be easily rebutted by the available correspondence on hand.


PJSC RusHydro is acting within the legal framework by communicating its official position publicly. As before, PJSC RusHydro is open to discussions on reimbursement by the Kyrgyz Republic of expenses incurred in the course of the project on construction of Verkhne-Narynskiy cascade of hydropower plants on the territory of the Kygyz Republic.

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