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The Court of Appeal of the Astana International Financial Centre has delivered judgment in the consolidated appeals brought by Naftogaz of Ukraine and Posco concerning the AIFC Court’s jurisdiction to recognise and enforce foreign arbitral awards.
Naftogaz’s appeal concerned an ICC award worth approximately US$1.4 billion against Gazprom. The appeal was heard by a three-judge panel comprising Chief Justice Lord Burnett of Maldon, Sir Jack Beatson and Sir Stephen Richards.
Although the appeals were dismissed, the Court accepted significant aspects of Naftogaz’s case concerning the jurisdictional framework. It held that the “exclusive jurisdiction” specified in Article 13(4) of the AIFC Constitutional Statute does not exhaust the Court’s jurisdiction, and that Article 13(5) empowers the AIFC Management Council to confer additional jurisdiction through AIFC Regulations. The Court also confirmed that current AIFC Regulations validly permit the recognition and enforcement of foreign arbitral awards within the AIFC.
The judgment therefore provides important clarification of the AIFC Court’s jurisdiction and confirms that foreign arbitral awards may be recognised and enforced within the AIFC, while identifying the territorial limits of the current enforcement framework.
Drew Holiner acted for Naftogaz. He was instructed by Wikborg Rein and appeared alongside Valikhan Shaikenov and Dina Berkaliyeva of ADL Disputes.