ARTICLE
11 May 2020

Coronavirus And Non-Performance Of Contractual Obligations In The Kyrgyz Republic

GI
GRATA International

Contributor

GRATA International is a dynamically developing international law firm which provides services for projects in the countries of the former Soviet Union and Eastern Europe. More than 28 years 250 professionals in 19 countries advise major international and local firms. GRATA is recognised by Chambers & Partners, Legal 500, IFLR1000, WWL, Asialaw Profiles. GRATA is recognised by Chambers & Partners, Legal 500, IFLR1000, WWL, Asialaw Profiles.
World Health Organization has characterized the outbreak of COVID-19 infection as a pandemic. More and more countries are closing borders, restricting people's movement, banning public gatherings, and controlling trade
Kyrgyzstan Coronavirus (COVID-19)

World Health Organization has characterized the outbreak of COVID-19 infection as a pandemic. More and more countries are closing borders, restricting people's movement, banning public gatherings, and controlling trade. Such measures have already hit hard tourism, air transportation, hospitality services. Other business sectors are expected to suffer in the coming weeks and months.

The Kyrgyz Republic has taken preventive measures too. On March 21, the government declared a nation-wide emergency situation, and four days later a state of emergency was declared in the cities of Bishkek, Osh, Jalal-Abad and some rural districts. The emergency regime imposes tight restrictions for operation of businesses and movement of people and cargo, and the business community is now facing a situation where running normal commercial activities, undertaking logistical operations, and fulfilling contractual obligations have become extremely challenging if not impossible at all. Under these circumstances, attention has focused on the outcomes of delaying or non-performing affected commercial contracts and on remedies available to mitigate the resulting legal risks.

The key question is whether or not the COVID-19 infection constitutes a force-majeure (FM) event. Pursuant to civil laws of Kyrgyzstan, unless otherwise provided by law or a contract, a person who breaches a commercial obligation shall not be held responsible if it proves that performance of the obligation was impossible due to an irresistible force, i.e. extraordinary and unavoidable circumstance (FM). The scope of FM events shall not encompass, among other things, third-party non-performance and lack of commodities or money required for performance of the obligation. Therefore, in order to qualify as a FM, the circumstance which has made performance of the obligation impossible must meet the criteria of extraordinariness and objective unavoidability.

Read more

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Mondaq uses cookies on this website. By using our website you agree to our use of cookies as set out in our Privacy Policy.

Learn More