KAZAKHSTAN Law and Practice Contributed by: Sergei Vataev, Ilya Kirichenko and Yelena Dvoretskaya-Yussupova, Legit Advocates‚ Bureau
6.3 Security for Costs Both the Kazakhstan general legislation and the legis - lation of the AIFC allow for the possibility of ordering security for costs. An arbitral tribunal has the authority to determine the amount and form of security in relation to claims. If one party fails to provide its portion of the required security within the time set by the tribunal, the other party may advance the full amount. If neither party provides the required security, the tribunal is entitled to suspend or terminate the proceedings, in whole or in part. The arbitral tribunal may use the security during the proceedings to cover incurred costs. Once the tribunal has ruled on its fees and expenses in the final award, and such part of the award becomes enforceable, the arbitrators are entitled to draw from the security in case of non-payment by the parties in accordance with the award. Arbitration proceedings in Kazakhstan are governed by the Constitution of the Republic of Kazakhstan, ratified international treaties, the Law of the Republic of Kazakhstan “On Arbitration”, Normative Resolution of the Supreme Court of the Republic of Kazakhstan dated 2 November 2023 No. 3 “On Certain Issues of Application of Arbitration Legislation by Courts” and the arbitration agreement, as well as the rules of arbi - tration chosen by the parties. It should be noted that the Civil Procedure Code does not apply in arbitration proceedings, except for issues related to: • delimitation of competence (if there is an arbitra - tion clause, the court may not consider the dispute unless otherwise provided by law); • application to the competent court for assistance in securing interim measures and collecting evi - dence; • setting aside arbitral awards; and • recognition and enforcement of arbitral awards. 7. Procedure 7.1 Governing Rules
Types of interim relief that may be granted include: • an injunction against the disposal of assets; • an order prohibiting certain conduct by a party; • preservation of evidence; and • suspension of contractual obligations on a tempo - rary basis. Such measures may be granted at the request of a party that demonstrates an urgent need to protect its rights pending the outcome of the arbitration. 6.2 Role of Courts In Kazakhstan, national courts play a significant role in granting interim measures to support arbitration proceedings. Parties can apply to the courts either before the start of arbitration or during the process if there is a risk of asset dissipation, loss of evidence or infringement of rights. Kazakhstan courts may also grant interim relief to support foreign-seated arbitrations. National legis - lation does not restrict such measures to domestic arbitrations. The key requirements are the existence of a valid arbitration agreement and a well-founded justification for the relief sought. The concept of an emergency arbitrator is not forbid - den under Kazakhstan law and can be included in the procedural rules of a specific arbitral institution. Under the AIFC legislation, such a mechanism is expressly provided for in the IAC Rules of Arbitration and Mediation. Decisions made by an emergency arbitrator are bind - ing on the parties, provided that the arbitration is conducted under rules permitting such appointment. However, as with standard interim measures, judicial assistance may be necessary to enforce these deci - sions. While courts generally refrain from interfering with arbitral proceedings, they become involved in the enforcement of interim or emergency measures.
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