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Cases & Deals

August 13, 2018

King & Spalding Secures Court of Appeal Ruling for Moldovan Oil & Gas Investors

King & Spalding has successfully represented clients, Anatolie Stati, Gabriel Stati and associated companies Ascom Group S.A. and Terra Raf Trans Traiding Ltd, against attempts by the Republic of Kazakhstan to proceed with a trial in England alleging that the Statis fraudulently procured a 2013 arbitration award worth in excess of US$523 million.

King & Spalding secured an arbitration award – one of the largest ever rendered under the Energy Charter Treaty – on behalf of the clients in December 2013 regarding Kazakhstan’s seizure of their petroleum operations in 2010 (more details here). In February 2018, the Statis decided no longer to pursue enforcement of that award in England, given more advanced enforcement proceedings with substantial assets attachments in other jurisdictions.

Kazakhstan sought to compel them to continue, in order to seek a judgment on the alleged fraud that could be deployed to resist enforcement elsewhere. The Court of Appeal unanimously in its judgment confirmed that Kazakhstan had no legitimate interest in seeking to do so. The judgment can be found here. The Statis’ enforcement efforts in the United States, Netherlands, Belgium, Luxembourg, Sweden and Italy, are ongoing.

King & Spalding’s London office advised the Statis on the case and performed advocacy before the English courts. The team was led by partners Tom Sprange QC and Egishe Dzhazoyan and included fellow partners Sarah Walker and Ruth Byrne, senior associate Ben Williams and associates Kabir Bhalla, Charity Kirby and Jessica Trevellick.