Uzbekistan wins $700 million arbitration case against Turkish textile company

On October 10 last year, the International Centre for Settlement of Investment Disputes (ICSID) arbitration tribunal issued a ruling on a case brought against Uzbekistan by Türkiye’s Bursel Tekstil Sanayi Ve Dış Ticaret A.Ş. and Turkish nationals. 

The claim amount was approximately $700 million.

According to the tribunal’s decision, all claims made by Bursel were dismissed. Moreover, the claimants were ordered to reimburse Uzbekistan for its arbitration expenses.

It was noted that the proceedings began in July 2017 at the initiative of Bursel and continued for nearly seven years. In accordance with arbitration rules, the tribunal’s decision is final and binding.

Uzbekistan’s interests in the case were represented by the country’s Ministry of Justice and the international law firm White & Case (Washington, USA).

For reference, Bursel Tekstil Sanayi Ve Dış Ticaret A.Ş. is a Turkish textile company that invested in Uzbekistan’s textile industry in the early 2000s. Specifically, it participated in a textile factory construction project in Tashkent financed by the OPEC Fund for International Development and the European Bank for Reconstruction and Development.

In 2017, Bursel Tekstil, together with two Turkish citizens, filed a claim with ICSID against Uzbekistan, alleging that their investments in the textile industry had been expropriated.