An Overview of Kazakhstan's Investment Laws and Its Investor-State Arbitral Awards

In recent years, the landlocked former Soviet Republic of Kazakhstan has substantially improved its oil and gas prospects. Being a rich supplier of oil and gas serves to attract foreign direct investments, but the prospect of such investments is diminished by the government's policy of confiscating the property of foreign direct investors to “protect its subsoil sector.” As a result of such expropriation, to date Kazakhstan has faced thirteen known investment arbitrations. Five proceedings are still pending, one has been discontinued pursuant to Rule 43, para.1 of the ICSID Arbitration Rules, three awards are confidential and not available to the public, and four awards are publicly available. These numbers demonstrate Kazakhstan's efforts to maintain its economic and political integrity by avoiding transparency in its investment policies.This article will analyze the investment laws of Kazakhstan, as well as give an overview of the awards that are publicly available. Finally, the article will outline the problems that foreign investors face in investment arbitrations against the Republic of Kazakhstan