KAZAKHSTAN Law and Practice Contributed by: Sergei Vataev, Ilya Kirichenko and Yelena Dvoretskaya-Yussupova, Legit Advocates‚ Bureau
Under general legislation in Kazakhstan, the appellate courts of relevant administrative territorial units review challenges against domestic arbitral awards (which may be brought on procedural grounds), while the rec - ognition and enforcement of an arbitral award are sub - ject to the jurisdiction of the courts of first instance. International arbitral awards can be challenged in Kazakhstan’s appellate courts if: • the seat of arbitration is in Kazakhstan; • the dispute is resolved under Kazakhstan law, and the award is issued abroad by a permanent arbitral institution located in Kazakhstan; or • the dispute is resolved under Kazakhstan law, and the award is issued abroad by a tribunal formed in Kazakhstan. The first instance courts also have the authority to rule on interim measures, assist in taking evidence, and handle the enforcement of awards and challenges against their enforcement. Under the AIFC legislation, the AIFC Court has the authority to rule on challenges against arbitrators, tribunal rulings confirming its jurisdiction, interim measures, securing evidence, assistance in taking evi - dence, challenges against awards, and the enforce - ment of awards. The Law on Arbitration of 2016 is the primary legisla - tion governing arbitration in Kazakhstan. It is based on the UNCITRAL Model Law; however, it also contains many provisions not found in the Model Law. Most notable differences with the Model Law are limi - tations and prohibitions on arbitrability of certain dis - putes, as explained in 3.2 Arbitrability . The Law on Arbitration stipulates certain qualification requirements for arbitrators, as described in 4.1 Limits on Selection . 2. Governing Legislation 2.1 Governing Law
The AIFC legislation on arbitration (AIFC Arbitration Regulations 2017) is based on the Kazakhstan Con - stitutional Law on the AIFC, which establishes spe - cial jurisdiction and legislation for the AIFC. It is less restrictive than the Kazakhstan Law on Arbitration and implements arbitration principles customary for other international arbitration institutions. It is worth noting that the AIFC Arbitration Regulations 2017 explicitly specify that the Law on Arbitration is not applicable to arbitration proceedings conducted in the IAC. 2.2 Changes to National Law There have been no major changes to arbitration laws (including both general and special AIFC legislation) in Kazakhstan over the past year, and no significant changes are currently planned. The general Kazakhstan Law on Arbitration largely aligns with the provisions of the UNCITRAL Model Law regarding the form of the arbitration agreement. It must be in writing and may be concluded either by exchange of documents between the parties or by tacit consent, such as the claimant’s submission of a claim referencing the arbitration agreement and the respondent’s response without challenging its exist - ence. The limitations and restrictions on arbitrability in the Law on Arbitration mentioned in 3.2 Arbitrability must also be adhered to for the arbitration agreement to be effective. The AIFC Arbitration Regulations 2017 provisions regarding the arbitration agreement resemble Article 7 of the Model Law. 3.2 Arbitrability Generally, in Kazakhstan, disputes that arise from civil law relationships are arbitrable. 3. The Arbitration Agreement 3.1 Enforceability The approach to arbitrability varies between the gen - eral legislation (Kazakhstan Law on Arbitration) and the special legislation of the AIFC.
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