Identifier
Created
Classification
Origin
07DUSHANBE926
2007-06-19 12:47:00
UNCLASSIFIED
Embassy Dushanbe
Cable title:
TAJIKISTAN REPORT ON SECTION 527
how-toVZCZCXRO9387 RR RUEHLN RUEHVK RUEHYG DE RUEHDBU #0926 1701247 ZNR UUUUU ZZH R 191247Z JUN 07 FM AMEMBASSY DUSHANBE TO RUEHC/SECSTATE WASHDC 0496 INFO RUEAIIA/CIA WASHDC RUCNCIS/CIS COLLECTIVE RUEATRS/DEPT OF TREASURY WASHINGTON DC RUEHDBU/AMEMBASSY DUSHANBE 2266 RHEHAAA/NSC WASHINGTON DC RUCPDOC/USDOC WASHDC 0170
UNCLAS DUSHANBE 000926
SIPDIS
SIPDIS
STATE FOR EB/IFD/OIA GOETHERT
STATE FOR L/CID MCDONALD
E.O. 12958: N/A
TAGS: EINV KIDE ECON PGOV TI
SUBJECT: TAJIKISTAN REPORT ON SECTION 527
REF: STATE 055422
UNCLAS DUSHANBE 000926
SIPDIS
SIPDIS
STATE FOR EB/IFD/OIA GOETHERT
STATE FOR L/CID MCDONALD
E.O. 12958: N/A
TAGS: EINV KIDE ECON PGOV TI
SUBJECT: TAJIKISTAN REPORT ON SECTION 527
REF: STATE 055422
1. Post is pleased to report on the satisfactory resolution of
the single outstanding U.S. company dispute in Tajikistan.
There are no new investment disputes between the United States
and the Republic of Tajikistan. Details of the resolved case
follow.
2. Claimant designation:
Claimant A is a major U.S. firm
Claimant B is a state-owned aluminum producer
Claimant C is an aluminum trading firm
Case History:
3. The U.S. claimant, Claimant A, had been in a longstanding
dispute with Claimant C, the former designated trading company
of Claimant B. Claimant A, a subsidiary of a U.S. corporation
based in Connecticut, had attempted to enforce a judgment that
it obtained in arbitration against Claimant B. Claimant B is
100% owned by the government of the Republic of Tajikistan.
4. Dispute arose in December 2004, when Claimant C failed to
deliver $20 million of Claimant B aluminum as agreed to in a
Deed of Guaranty signed April 2004 to Claimant A. During the
first half of 2005, Claimant A commenced arbitration proceedings
in the ICC Arbitration Court against Claimant C, and in Moscow
against Claimant B. During 2006, Claimant A received an interim
award against Claimant C from the ICC Arbitration Court for an
amount of $20 million plus costs and interest. After failing to
receive payment upon this award, Claimant A commenced
enforcement actions in Moscow against Claimant C's assets with a
Moscow Court.
5. The dispute was resolved in April of this year, when
Claimant C decided to pay the $30 million in full to Claimant A.
(Technically, Claimant C will pay the Tajik government, and the
Tajik government will pay Claimant A.)
6. The U.S. Embassy in Dushanbe and the U.S. Department of
Commerce spent significant time since 2004 meeting with the
claimants, facilitating dialogue between the parties, and
pressuring the Tajik government to resolve the dispute. This
dispute served as a warning to international investors about
Tajikistan's unwillingness to uphold contracts and rule of law.
The resolution of this dispute is a welcome step by the Tajik
government towards fulfilling its obligations to the
international community.
7. Claimants:
Claimant A: Gerald Metals, S.A.
Claimant B: Tajik Aluminum Plant (TadAZ, now called TALCO)
Claimant C: Ansol, Limited
JACOBSON
SIPDIS
SIPDIS
STATE FOR EB/IFD/OIA GOETHERT
STATE FOR L/CID MCDONALD
E.O. 12958: N/A
TAGS: EINV KIDE ECON PGOV TI
SUBJECT: TAJIKISTAN REPORT ON SECTION 527
REF: STATE 055422
1. Post is pleased to report on the satisfactory resolution of
the single outstanding U.S. company dispute in Tajikistan.
There are no new investment disputes between the United States
and the Republic of Tajikistan. Details of the resolved case
follow.
2. Claimant designation:
Claimant A is a major U.S. firm
Claimant B is a state-owned aluminum producer
Claimant C is an aluminum trading firm
Case History:
3. The U.S. claimant, Claimant A, had been in a longstanding
dispute with Claimant C, the former designated trading company
of Claimant B. Claimant A, a subsidiary of a U.S. corporation
based in Connecticut, had attempted to enforce a judgment that
it obtained in arbitration against Claimant B. Claimant B is
100% owned by the government of the Republic of Tajikistan.
4. Dispute arose in December 2004, when Claimant C failed to
deliver $20 million of Claimant B aluminum as agreed to in a
Deed of Guaranty signed April 2004 to Claimant A. During the
first half of 2005, Claimant A commenced arbitration proceedings
in the ICC Arbitration Court against Claimant C, and in Moscow
against Claimant B. During 2006, Claimant A received an interim
award against Claimant C from the ICC Arbitration Court for an
amount of $20 million plus costs and interest. After failing to
receive payment upon this award, Claimant A commenced
enforcement actions in Moscow against Claimant C's assets with a
Moscow Court.
5. The dispute was resolved in April of this year, when
Claimant C decided to pay the $30 million in full to Claimant A.
(Technically, Claimant C will pay the Tajik government, and the
Tajik government will pay Claimant A.)
6. The U.S. Embassy in Dushanbe and the U.S. Department of
Commerce spent significant time since 2004 meeting with the
claimants, facilitating dialogue between the parties, and
pressuring the Tajik government to resolve the dispute. This
dispute served as a warning to international investors about
Tajikistan's unwillingness to uphold contracts and rule of law.
The resolution of this dispute is a welcome step by the Tajik
government towards fulfilling its obligations to the
international community.
7. Claimants:
Claimant A: Gerald Metals, S.A.
Claimant B: Tajik Aluminum Plant (TadAZ, now called TALCO)
Claimant C: Ansol, Limited
JACOBSON