International Commercial Arbitration at Turkmenistan
Sure! Here’s an overview of International Commercial Arbitration in Turkmenistan:
🌍 Overview: Turkmenistan and Arbitration
Turkmenistan is a Central Asian country with a developing legal framework for arbitration. It is gradually aligning its arbitration laws with international standards to attract foreign investment and resolve cross-border commercial disputes efficiently.
⚖️ Legal Framework
Turkmenistan's arbitration framework is primarily governed by the Civil Procedure Code of Turkmenistan and specific laws on arbitration.
The country has taken steps toward modernizing arbitration laws, but it does not yet fully incorporate the UNCITRAL Model Law.
Turkmenistan is not yet a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which limits international enforceability of arbitral awards.
🏛️ Arbitral Institutions
Turkmenistan currently does not have a prominent local arbitration institution recognized internationally.
Arbitration is mostly conducted ad hoc or through foreign arbitration institutions (e.g., ICC, LCIA).
Many contracts with Turkmen counterparts specify arbitration in neutral jurisdictions with established arbitration frameworks (e.g., London, Paris, Singapore).
📌 Key Features
| Feature | Details |
|---|---|
| Applicable Law | Civil Procedure Code and arbitration-related legislation |
| International Law | Not a signatory to the New York Convention |
| Arbitral Institutions | No established local institutions; ad hoc or foreign institutions used |
| Seat of Arbitration | Usually chosen outside Turkmenistan to ensure enforceability |
| Languages | Turkmen (official), Russian and English often used in contracts |
🌐 Practical Considerations
Due to limited local arbitration infrastructure and lack of New York Convention membership, parties often prefer arbitration outside Turkmenistan.
Enforcement of foreign arbitral awards in Turkmenistan may be uncertain and require local court involvement.
Foreign investors typically include arbitration clauses with seats in jurisdictions with strong arbitration laws and enforcement.
✍️ Sample Arbitration Clause Involving Turkmenistan
“Any dispute arising out of or relating to this contract shall be finally resolved by arbitration under the Rules of the International Chamber of Commerce (ICC). The seat of arbitration shall be London, United Kingdom. The arbitration proceedings shall be conducted in English. The arbitral tribunal shall consist of three arbitrators.”
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