Stans Energy Corp reports that the Kyrgyz Republic has filed a motion to the Moscow Arbitration Court to block the company’s recent judgement. The Kyrgyz Republic filed a motion to the Court to have the Judgement of the Arbitration Court at the Moscow Chamber of Commerce and Industry in the matter dated June 30, 2014 to be set aside.
At the same time, the Kyrgyz Republic filed the motion on adoption of interim measures in the form of:
1. Suspension of the recovery of Judgement of the Arbitration
2. Prohibit the Claimant (Stans) and other third parties, wherever they are, to take any action on the territory of the Russian Federation or any foreign State:
• On recognition and enforcement of the Judgement;
• On recovery of any sums under this Judgement;
• On arrest of any property of the Kyrgyz Republic;
• On adoption of any other interim measures in connection with the Judgment.
The Court ruled to refuse the Kyrgyz Republic motion.
Previously on September 23, 2014, the Economic Court of the CIS issued a decision No 01-1/1-14 ‘On Interpretation of Article 11 of the Moscow Convention for the Protection of Investor’s Rights dated March 28, 1997’. In essence the advisory opinion upholds the decision of the MCCI with regards to jurisdiction in the international arbitration between Stans and the Kyrgyz Republic.
It should be noted that neither of these proceedings have any legal binding on the full enforcement of the damage reward received by the company. Stans continues to prepare for collection process against the Kyrgyz Republic.
Stans Energy Corp is a resource development company focused on progressing Heavy Rare Earth (HRE) properties in areas of the former Soviet Union. In December 2009, Stans acquired a 20-year mining licence for the past-producing Kutessay II rare earth mine from the Kyrgyz Republic.
On May 26, 2011 Stans completed the purchase of the Kashka Rare Earth Processing Plant (KRP) the same plant that previously refined REEs historically from Kutessay II. The KRP was the only hard rock plant to produce all rare earth elements outside China, producing 120 different metals, alloys, and oxides. For more than 30 years, Kutessay II produced 80% of the rare earth metals for the former Soviet Union.