Bishkek February 22 / Kabar /. The Court of Appeal of Paris annulled $16.5 million award for Latvian businessman Valeri Belokon, the press service of the Kyrgyz Government reports.
The Court of Appeal of Paris annulled the award because of Manas Bank, the only shareholder of which is Belokon, was engaged in money laundering.
On April 8, 2010, the National Bank of the Kyrgyz Republic introduced temporary mode of management (without limitation) in relation to Manas bank because of large-scale suspicious transactions. Subsequently, Manas Bank was bankrupted.
On August 2, 2011 on the basis of the Latvian-Kyrgyz agreement on mutual protection of investments, the only shareholder of Manas Bank Valery Belokon has appealed to international arbitration in Paris, demanding to recover from the Kyrgyz Republic a compensation for the "expropriation" of Manas Bank CJSC.
On October 24, 2014 International Arbitration in Paris delivered a judgment to award Belokon 16.5 million US dollars compensation for the "expropriation" of Manas Bank CJSC, as well as legal expenses of Belokon and interest on these amounts.
January 22, 2015 the Kyrgyz side appealed the Court of Appeal of Paris demanding to cancel this decision due to violation of French international public policy, namely, that the decision to award the compensation to Belokon for the business, which is essentially was a criminal enterprise engaged in money laundering.
On February 21, 2017 the Court of Appeal of Paris has canceled the arbitration award in favor of Belokon. The Court also obliged to cover legal costs of the Kyrgyz side in the amount of EUR 300,000.