OVERVIEW OF INTERNATIONAL, REGIONAL AND BILATERAL INSTRUMENTS OF CENTRAL ASIA

The strategic location and abundance of natural resources of the Central Asian states have increased flow of foreign direct investments into the region. The Central Asian states are parties to several international, regional and bilateral treaties on regulation of foreign direct investments and international dispute settlement. This publication maps the existing patchwork of the legal infrastructure in force in Central Asia.

I.       International treaties

The 1958 New York Convention

All five Central Asian states are parties to the 1958 New York Convention. Kazakhstan and Uzbekistan became full members of the Convention in 1996, followed by Kyrgyzstan in 1997, relatively immediately after the collapse of the Soviet Union. These three republics acceded to the Convention “as it is” without any declarations and/or reservations made at the accession or thereafter.

The Convention entered into force for Tajikistan in 2012 after it accession in the same year. Turkmenistan became a member of the Convention after a decade in 2022 since Tajikistan’s accession to it.

Notably, the last two republics acceded to the Convention with declarations and reservations. Tajikistan made a reservation that “...Tajikistan will apply this Convention to differences and arbitral [a]wards arised out after entering into force of this Convention with respect to the Republic of Tajikistan and made in the territory of another Contracting State; and ...Tajikistan will not apply this Convention with regard to differences related to immovable property”.

Turkmenistan acceded to the Convention with declarations and reservations that “...Turkmenistan declares that it will apply this Convention only to the recognition and enforcement of awards made in the territory of another Contracting State; and ... apply this Convention only in relation to disputes which are considered as commercial disputes under the national law of Turkmenistan and... only to the recognition and enforcement of awards which are rendered after the Convention enters into force for it”.

Given the reservations made by Tajikistan and Turkmenistan, arbitral awards will be recognized and enforced in these republics only if such awards are rendered after the Convention came into force for Tajikistan and Turkmenistan in 2012 and 2022, respectively. In regard to the arbitrability of disputes and/or enforceability of arbitral awards, Tajikistan will not apply the Convention in regard to differences related to immovable property, while the scope of application of the Convention in Turkmenistan will be limited by its national legislation and definition of commercial disputes provided thereunder.

The 1965 ICSID Convention

Four of the Central Asian states are parties to the 1965 ICSID Convention. If Turkmenistan acceded to the 1958 New York Convention latest, it became a member of the ICSID Convention on 26 October 1992, just a year after the collapse of the Soviet Union. Uzbekistan became a member of the Convention in 1995, followed by Kazakhstan in 2000, and Kyrgyzstan in 2022. Tajikistan is not party to the Convention to the date of this report.

All four Central Asian Republics acceded to the Convention “as it is” without any declarations.

As of the date of this report, the Central Asian states have participated overall in 45 ICSID cases as respondents. There are 15 registered ICSID against Kazakhstan, 10 registered ICSID cases against Uzbekistan, 15 registered ICSID cases against Turkmenistan, 4 registered ICSID cases against Kyrgyz Republic, and only 1 registered ICSID case against Tajikistan as respondents. Meanwhile, the Central Asian companies and individuals (mostly as subsidiaries of overseas investor companies and/or beneficiary owners) have participated in 7 ICSID cases as claimants.

The 1985 MIGA convention

All five Central Asian states are members of the 1985 MIGA Convention. The MIGA convention protects foreign investors from the risk of currency transfer restrictions, expropriation and similar measures, breach of contract, war and civil disturbance.

MIGA have participated in around 30 projects in Central Asia. To note, MIGA has its own rules of arbitration. When a contract of guarantee concluded between an investor and MIGA contains an arbitration clause refers to the MIGA’s arbitration rules, the arbitration rules govern settlement of such dispute.

WTO

Only three of five Central Asian republics are members to World Trade Organization. The first Central Asian country to become a member of WTO was Kyrgyz Republic (20 December 1998), followed by Tajikistan (2 March 2013) and Kazakhstan (30 November 2015).

Meanwhile, Turkmenistan and Uzbekistan hold an observer status within WTO. Turkmenistan’s Working Party was established on 23 February 2022, but there have not been significant steps taken on its accession to WTO. Uzbekistan’s Working Party was established on 21 December 1994 and since 2020 Uzbekistan has been taking active measures to conclude its accession negotiations by the 14th Ministerial Conference (MC14) in Cameroon in March 2026.

There have been only two registered requests for consultations involving Central Asian states, both brought by Ukraine, against Kazakhstan and Kyrgyz Republic regarding anti-dumping measures on steel pipes.

The Energy Charter Treaty

All five Central Asian states are parties to the Energy Charter Treaty. The website of the Energy Charter Treaty lists 9 cases against the Central Asian states as respondents in energy sector as of 1 December 2023. Additionally, there are two pending ICSID cases in which the investors invoked the Energy Charter Treaty as an instrument to base their claim against the Central Asian states. Lotus Proje Akaryakıt Enerji Madencilik Telekominikasyon İnşaat Sanayi Taah. Ve Tic. A.Ş. v. Turkmenistan (ICSID Case No. ARB/24/13) registered by ICSID in 2024,  and Victoria Oil & Gas Plc (in Administration), Victoria Energy Central Asia UK Limited and Victoria Energy Central Asia LLP v. Republic of Kazakhstan (ICSID Case No. ARB/25/13) has been registered by ICSID in 2025.

What is noteworthy is that while the Central Asian states have been actively engaging foreign investors in renewable energy sectors due to the countries’ growing energy demands (for example, at the Central Asia-European Union summit held 3-4 April in Samarkand, Uzbekistan, EU alone announced 12 billion Euro investment package for Central Asia 6,4 billion Euro of which will be directed to hydrogen and green investment projects), they have not made any declarations on their intentions to withdraw from the treaty or any suggestions on its modernization.

The Singapore Convention on Mediation

Majority of the Central Asian states do not participate in the Singapore Convention on Mediation. Only Kazakhstan has acceded to the Convention and it came into force for Kazakhstan on 23 November 2022. The national legislation of the other Central Asian countries does not provide for recognition and enforcement of mediation awards under the Singapore Convention.

II.      Regional Cooperation

The Central Asian states participate in the Commonwealth of Independent States (CIS). There are several regional treaties operative within the framework of the CIS.

The 1993 Agreement on investment cooperation

Four of the five Central Asian states participate in the 1993 Agreement on cooperation in the field of investment activities: Kazakhstan, Kyrgyz Republic, Tajikistan and Uzbekistan. Turkmenistan has signed the Agreement yet it did not come into effect for Turkmenistan yet.

The Agreement regulates the guarantees provided to investors of the contracting parties, including among others, free retrieval of funds, protection from expropriation, nationalization and requisition.

The 1997 Convention on protection of investor rights

Kazakhstan, Kyrgyz Republic and Tajikistan are parties to the Convention on protection of investor rights. Neither Turkmenistan nor Uzbekistan have signed the Convention.

The 2023 Agreement on Services and Investment

The 2023 Agreement is the most comprehensive of all agreements on regulation of investments. Kazakhstan, Kyrgyz Republic and Tajikistan are full members of the Agreement, while Uzbekistan has signed the Agreement, it still has to be ratified by Uzbekistan. Turkmenistan has not signed the Agreement. Notably, the Agreement contains an extensive provision on investor-state dispute settlement.

The 1993 Minsk and 2002 Chisinau Convention

Within the CIS, there are two conventions on recognition and enforcement of court awards issued by judicial authorities of member states. All five Central Asian countries are parties to the 1993 Mink Convention on Legal Assistance and four of them have acceded also to the 1997 Moscow Protocol to it (except for Turkmenistan). The 2002 Chisinau Convention has replaced the 1993 Minsk Convention and 1997 Moscow Protocol to it in member states which have ratified the 2002 Chisinau Convention. Kazakhstan, Kyrgyz Republic , Tajikistan and Uzbekistan participate in the 2002 Chisinau Convention on Legal Assistance.

Participation of Central Asian countries in the above-mentioned CIS Conventions is of significant importance in the light of the “Lugovoy Law” since it creates a conflicting obligation for Central Asian states to enforce both court awards issued by Russian courts under these Conventions and arbitral awards under the 1958 New York Convention and 1965 ICSID Convention. The judiciary of Central Asian states have yet to comment on the conflicting obligations of the Central Asian countries to recognize and enforce awards related to disputes with participation of Russian sanctioned parties.

III.     Central Asia and BITs

Bilateral investment treaties are a common way of protecting investments in Central Asia. As of 25 July 2025, the Central Asian countries are parties to 175 BITs in force (Uzbekistan - 50; Turkmenistan - 25; Tajikistan -29; Kazakhstan - 43; Kyrgyzstan -28). Meanwhile, none of the Central Asian states have a developed model BIT.

The BITs signed by Central Asian states require a deeper study and review of their content which will be reported in subsequent issues of this newsletter.