Belokon v. Kyrgyzstan: practical implications of award set-asides arising from corruption allegations.

Lai, Roslyn; Mak, Charles Ho Wang

Abstract

As one of the most arbitration-friendly jurisdictions, French courts have long had a tradition of judicial non-interference in the arbitral process. In the context of annulment proceedings, French courts are normally granted limited scope in reviewing arbitral awards. However, on 23rd March 2022, the French Cour de Cassation (France's supreme court of appeal on matters of law) upheld a 2017 Paris Court of Appeal decision vacating a US$15 billion UNCITRAL award against Kyrgyzstan in Belokon v. Kyrgyzstan. The Paris Court of Appeal had set aside the award based on international public policy, as enforcement of the arbitral award would enable the investor to profit from money laundering revenues. In reaching this decision, the Paris Court of Appeal had relied on documents and evidence that were not previously produced or relied upon by the arbitral tribunal. The Cour de Cassation judgement brings welcome confirmation that French judges have full authority and an expanded scope of fact-finding powers when reviewing the implications of enforcing an arbitral award on the grounds of international public policy due to allegations of corruption and money laundering. This Insight aims to highlight the key findings in these decisions and briefly touch on comparative developments in the English courts.

Citation

LAI, R. and MAK, C.H.W. 2022. Belokon v. Kyrgyzstan: practical implications of award set-asides arising from corruption allegations. ASIL insights [online], 26(14). Available from: https://www.asil.org/insights/volume/26/issue/14

• Journal Article Type: Article
• Acceptance Date: Dec 12, 2022
• Online Publication Date: Dec 14, 2022
• Publication Date: Dec 14, 2022
• Deposit Date: Jul 19, 2023
• Publicly Available Date: Jul 19, 2023
• Journal: ASIL insights
• Publisher: American Society of International Law
• Peer Reviewed: Peer Reviewed
• Volume: 26
• Issue: 14
• Keywords: International arbitration; Banking; Financial regulations; France
• Public URL: https://rgu-repository.worktribe.com/output/2015247
• Publisher URL: https://www.asil.org/insights/volume/26/issue/14