International Arbitration Comparative Guide

1 Legal framework

1.1 What is the relevant legislation on arbitration in your jurisdiction? Are there any significant limitations on the scope of the statutory regime – for example, does it govern oral arbitration agreements?

In Uzbekistan, arbitration is governed by distinct laws depending on the type of arbitration:

• The Law on International Commercial Arbitration (LRU-674, 16 February 2021) governs international arbitration; and
• the Law on Arbitration (Treteyskiy) Courts (LRU-64, 16 October 2006) governs domestic arbitration.

Uzbekistan is also a party to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards; and specific arbitration rules, such as the Tashkent International Arbitration Centre (Tashkent International Arbitration Centre) Rules, may apply.

The concepts of international commercial arbitration and treteyskiy arbitration differ under Uzbek law and are regulated by separate statutes.

The laws require arbitration agreements for both international and treteyskiy arbitration to be in writing. An arbitration agreement can take the form of a contractual clause or a standalone agreement. Under both laws, an agreement is considered to be in writing if its content is recorded in any form, including through exchanges of letters or electronic communications.

The Law on International Commercial Arbitration provides additional flexibility, allowing an arbitration agreement to be deemed in writing if established through an exchange of arbitration requests and statements of defence, where neither party objects to the agreement's existence. It also recognises contractual references to documents containing arbitration clauses, provided that the reference integrates the clause into the contract.

The Law on Arbitration (Treteyskiy) Courts, however, lacks these provisions, maintaining stricter requirements for the documentation of arbitration agreements.

1.2 Does this legislation differentiate between domestic arbitration and international arbitration? If so, how is each defined?

Yes, Uzbek law distinguishes between domestic and international arbitration, with each governed by different laws:

• The Law on Arbitration (Treteyskiy) Courts regulates domestic arbitration; and
• The Law on International Commercial Arbitration applies to international arbitration.

While the Law on Arbitration (Treteyskiy) Courts does not explicitly classify proceedings under this law as domestic arbitration, this conclusion is inferred from Clause 10, which requires disputes to be resolved based on Uzbek law.

The Law on International Commercial Arbitration defines arbitration as international if any of the following criteria are met:

• The parties to the arbitration agreement have their commercial enterprises in different countries;
• The arbitration's place, the performance of substantial obligations or the location most closely connected to the dispute is outside the state where the parties have their commercial enterprises; or
• The parties agree that the arbitration agreement concerns matters involving more than one country.

If arbitration meets these criteria, the Law on International Commercial Arbitration will apply. However, ambiguity arises when a dispute is heard by an international arbitration court but lacks elements of international arbitration as defined by the law.

This issue is controversial even among Uzbek lawyers. Some argue that if a case is referred to international commercial arbitration, the Law on International Commercial Arbitration should apply regardless of the presence of international elements. Others believe that in the absence of such elements, the Law on Arbitration (Treteyskiy) Courts should apply.

1.3 Is the arbitration legislation in your jurisdiction based on the UNCITRAL Model Law on International Commercial Arbitration?

Yes, the arbitration legislation in Uzbekistan is based on the UNCITRAL Model Law on International Commercial Arbitration (1985), including the 2006 amendments. This has been confirmed by the UNCITRAL Secretariat, which listed Uzbekistan among the jurisdictions that had adopted legislation influenced by the Model Law in 2021.

The Law on International Commercial Arbitration incorporates many provisions and principles of the Model Law, ensuring consistency with international standards. However, as in other jurisdictions, Uzbekistan's implementation of the Model Law includes some modifications to adapt the framework to the country's specific legal and commercial context.

While the Model Law serves as a guideline, states retain flexibility in its adoption. This means that there may be deviations or localised adjustments in Uzbekistan's legislation compared to the original Model Law text. For precise application, it is essential to review the domestic law directly.

For further details on the global status of the UNCITRAL Model Law and its adoption, please visit https://uncitral.un.org/en/texts/arbitration/modellaw/commercial_arbitration/status.

1.4 Are all provisions of the legislation in your jurisdiction mandatory?

In Uzbekistan, both the Law on International Commercial Arbitration and the Law on Arbitration (Treteyskiy) Courts include a mix of mandatory and non-mandatory provisions.

The non-mandatory provisions give parties the flexibility to agree on certain procedural and substantive aspects of their arbitration. For example, some provisions state that a particular rule applies "unless the parties agree otherwise". Such flexibility, as provided under the Law on International Commercial Arbitration, applies to matters such as:

• the selection of arbitrators;
• the number of arbitrators;
• the procedure for challenging an arbitrator;
• requests for interim measures;
• the procedure for conducting arbitration proceedings;
• the seat and language of arbitration;
• the commencement of arbitration;
• the appointment of experts;
• the inclusion of reasoning in awards; and
• the issuance of additional awards.

The law also specifies that if a provision refers to the parties' agreement or allows them to reach an agreement, such agreement may include the arbitration rules specified by the parties. This ensures that parties can customise the arbitration process to suit their needs while adhering to the framework set out by law.

However, certain provisions remain mandatory and cannot be modified by the parties, particularly where they address fundamental principles of the arbitration process or public policy.

It is crucial for parties to be aware of these distinctions and act promptly to raise objections to any procedural irregularities. The Law on International Commercial arbitration states that if a party fails to raise timely objections to procedural irregularities or does not comply with agreed terms, it may lose the right to challenge them later.

1.5 Are there any current plans to amend the arbitration legislation in your jurisdiction?

Currently, there are no formal plans to significantly amend Uzbekistan's arbitration legislation. However, the country is actively positioning itself as a regional arbitration hub, as reflected in initiatives such as Uzbek Arbitration Week 2024, which aims to strengthen the arbitration framework. Recent developments include:

• the establishment of the TIAC; and
• updates to the Economic Procedural Code (EPC) to better support arbitration, particularly in relation to matters such as:
• • evidence handling;
  • interim measures; and
  • the recognition of foreign arbitral awards.

Uzbekistan's arbitration laws were recently aligned with international standards – notably through the adoption of the Law on International Commercial Arbitration (2021), which is based on the UNCITRAL Model Law. This has introduced more modern arbitration practices, such as allowing arbitration agreements to be executed electronically. In addition, in November 2023, the Plenum of the Supreme Court:

• issued a resolution clarifying the enforcement of foreign arbitral awards under the EPC; and
• affirmed the application of the New York Convention by the Uzbek courts.

Further amendments were made in 2022 with the Law on Amendments and Additions related to the Adoption of the Law on International Commercial Arbitration.

Uzbekistan also acceded to the New York Convention in 1996 without reservations, making it fully applicable to all arbitral awards that fall within its scope, regardless of the origin of the award or the commercial relationship involved. These steps reflect Uzbekistan's commitment to refining, rather than overhauling, its arbitration framework.

1.6 Is your jurisdiction a signatory to the New York Convention? If so, have any reservations been made?

Yes, Uzbekistan acceded to the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards in 1996 without making any reservations. This means that Uzbekistan did not apply the common reciprocity or commercial reservations, making the convention fully applicable to all arbitral awards that fall within its scope, regardless of:

• the award's country of origin; or
• the type of commercial relationship involved.

1.7 Is your jurisdiction a signatory to any other treaties relevant to arbitration?

Uzbekistan is indeed a signatory to multiple treaties supporting international arbitration beyond the New York Convention:

• Convention on the Settlement of Investment Disputes between States and Nationals of Other States: Uzbekistan is a member of this convention, which provides a framework for arbitration in disputes related to foreign investments.
• Bilateral investment treaties: Uzbekistan has entered into multiple bilateral investment treaties with various countries. These treaties often include provisions for dispute resolution through arbitration, particularly concerning investments between the treaty parties.
• Minsk Convention on Legal Assistance and Legal Relations in Civil, Family and Criminal Cases (1993): Uzbekistan is a signatory to this regional treaty, which includes provisions for the recognition of arbitral awards in participating countries.

2 Arbitrability and restrictions on arbitration

2.1 How is it determined whether a dispute is arbitrable in your jurisdiction?

In Uzbekistan, the arbitrability of a dispute is determined by the Law on International Commercial Arbitration and the Law on Arbitration (Treteyskiy) Courts, based on the type of arbitration involved.

According to Article 4 of the Law on International Commercial Arbitration, disputes arising from all commercial relationships – both contractual and non-contractual – can be submitted to international commercial arbitration, provided that the parties agree to arbitrate. This allows for a broad scope of arbitrable disputes, including those between parties from different countries.

The Law on Arbitration (Treteyskiy) Courts (Article 9) governing domestic arbitration specifies that arbitration (treteyskiy) courts can resolve disputes arising from civil legal relations, including economic disputes between business entities. However, arbitration (treteyskiy) courts cannot hear:

• disputes relating to administrative, family or labour law; or
• other types of disputes explicitly excluded by law.

Certain categories of disputes – such as those involving family law, bankruptcy, administrative matters and criminal issues – are not arbitrable, as they fall under the exclusive jurisdiction of state courts in Uzbekistan. These types of disputes cannot be submitted to arbitration, whether international or domestic.

2.2 Are there any restrictions on the choice of seat of arbitration for certain disputes?

Article 35 of the Law on International Commercial Arbitration allows parties to freely agree on the arbitration seat. In the absence of an agreement, the arbitral tribunal will determine the seat based on relevant factors, such as convenience for the parties.

The provisions of the Law on International Commercial Arbitration, with the exception of listed articles, apply only if the place of arbitration is in Uzbekistan. These exceptions cover important aspects such as:

• arbitration agreements (Article 13);
• interim measures (Articles 14, 30 and 31); and
• the recognition and enforcement of arbitral awards (Articles 51 and 52).

This means that if the arbitration takes place in Uzbekistan, these provisions will apply regardless of the parties' choice of seat, while the remaining provisions are applicable only when the seat of arbitration is within Uzbekistan.

3 Arbitration agreement

3.1 What are the validity requirements for an arbitration agreement in your jurisdiction?

In Uzbekistan, the validity of an arbitration agreement is governed by:

• Article 12 of the Law on International Commercial Arbitration; and
• Article 12 of the Law on Arbitration (Treteyskiy) Courts.

The agreement must be in writing, either as a separate document or as a clause within a contract. It can cover disputes arising from both contractual and non-contractual relationships.

The 'writing' requirement is satisfied through any fixed form of communication, including electronic means such as email, fax or telex, as long as the data is accessible for future reference. Furthermore, the agreement is considered valid if there is an exchange of claims and defences, with one party asserting the existence of an arbitration agreement and the other party not objecting to it.

In the case of an arbitration clause embedded in a contract, the clause is valid if the reference clearly incorporates the clause into the contract. This ensures flexibility in how the arbitration agreement can be formalised, allowing for both traditional and electronic methods of agreement.

3.2 Are there any provisions of legislation or any other legal sources in your jurisdiction concerning the separability of arbitration agreements?

Yes, the legislation in Uzbekistan includes provisions concerning the separability of arbitration agreements. Article 21 of the Law on International Commercial Arbitration explicitly recognises the principle of separability. It states that an arbitration clause within a contract is treated as independent from the other terms of the contract. This means that if the main contract is deemed invalid, the arbitration clause remains effective and does not automatically become void.

Article 24 of the Law on Arbitration Courts also reflects this principle, ensuring that an arbitration (treteyskiy) agreement is considered separate from the underlying contract.

3.3 Are there provisions on the seat and/or language of the arbitration if there is no agreement between the parties?

The Law on International Commercial Arbitration includes the following provisions on the seat and language of arbitration where the parties have not agreed otherwise:

• Seat of arbitration: According to Article 35 of the Law on International Commercial Arbitration, if the parties have not agreed on the seat of arbitration, the arbitral tribunal has the authority to determine the location. The tribunal will consider factors such as convenience for the parties and any other relevant circumstances when making this decision.
• Language of arbitration: Article 36 specifies that in the absence of an agreement between the parties, the arbitral tribunal will determine the language(s) to be used in the proceedings. This applies to all written statements, hearings and awards, unless the tribunal specifies otherwise.

4 Objections to jurisdiction

4.1 When must a party raise an objection to the jurisdiction of the tribunal and how can this objection be raised?

In Uzbekistan, a party must raise an objection to the tribunal's jurisdiction by the time it submits its statement of defence.

Under Article 21 of the Law on International Commercial Arbitration, the appointment of an arbitrator or participation in the appointment process does not prevent a party from raising this objection. If a party believes that the tribunal is exceeding its jurisdiction, the objection must be raised promptly once the issue arises. The tribunal may consider objections raised later if the delay is justified.

Jurisdictional objections can be addressed by the tribunal either as a preliminary issue or within the final award. If the tribunal rules on the objection as a preliminary matter and affirms its jurisdiction, any party may seek a court review of the decision within 30 days of receiving the ruling. However, this decision is final and is not subject to appeal. During the court review, the tribunal may continue its proceedings and issue an award.

4.2 Can a tribunal rule on its own jurisdiction?

Yes, a tribunal can rule on its own jurisdiction. This principle, known as Kompetenz-Kompetenz, is established in Article 21 of the Law on International Commercial Arbitration. The arbitral tribunal has the authority to decide on its own jurisdiction, including challenges to the existence or validity of the arbitration agreement.

Additionally, the law upholds the separability of arbitration agreements. An arbitration clause within a contract is treated as independent from the rest of the contract's terms. Therefore, even if the main contract is declared invalid or unenforceable, the arbitration agreement remains valid unless proven otherwise.

This ensures that the tribunal can proceed with arbitration and decide jurisdictional issues without external interference, reinforcing the efficiency and autonomy of arbitration proceedings.

4.3 Can a party apply to the courts of the seat for a ruling on the jurisdiction of the tribunal? In what circumstances?

Yes, a party may apply to the courts of the seat for a ruling on the jurisdiction of the arbitral tribunal under specific conditions.

According to Article 21 of the Law on International Commercial Arbitration, if the tribunal issues a preliminary ruling affirming its jurisdiction, any party may request the state court to review this decision within 30 days of receiving notice. The state court's decision is final and cannot be appealed. Importantly, while the court's review is pending, the arbitral tribunal may continue proceedings and even render an award.

Furthermore, under Article 281 of the Economic Procedural Code (EPC), economic courts have jurisdiction over cases related to arbitration, including decisions on the tribunal's jurisdiction, provided that the place of arbitration is in Uzbekistan. The relevant application must be filed in the economic court where the arbitration is seated, as specified in Article 37 of the EPC.

Similar provisions are reflected in the rules of Uzbekistan-based arbitration institutions, such as the Tashkent International Arbitration Centre Rules. For example, the tribunal can rule on jurisdiction as a preliminary issue or as part of the final award. If jurisdiction is upheld as a preliminary matter, a party may seek judicial intervention.

While judicial review is ongoing, the tribunal retains the authority to proceed with the arbitration. However, the court's ruling may affect the enforceability or continuation of the arbitration process.

5 The parties

5.1 Are there any restrictions on who can be a party to an arbitration agreement?

There are no explicit restrictions on who can be a party to an arbitration agreement under Uzbek law. Both the Law on International Commercial Arbitration and institutional rules, such as the Tashkent International Arbitration Centre Rules, generally permit any party to enter into an arbitration agreement, provided that it has the legal capacity to contract. However, there are some implicit limitations, as follows:

• Legal capacity: Only parties with the legal capacity to contract can enter into arbitration agreements. This excludes individuals or entities that are legally unable to contract, such as minors or entities restricted by law.
• Commercial nature: The arbitration law applies to commercial disputes. Therefore, arbitration agreements involving non-commercial parties or disputes that do not arise from commercial or contractual relationships may not fall under the law's scope.
• Public policy restrictions: Certain matters are typically excluded from arbitration due to public policy considerations. These may include disputes relating to:
• • family law;
  • criminal cases; or
  • consumer rights.
• Although Uzbek law does not explicitly list such restrictions, they align with international norms and may indirectly limit who can be a party to an arbitration agreement.

In summary, while the law allows for broad participation in arbitration agreements, implicit restrictions are created by:

• legal capacity;
• the commercial nature of the dispute; and
• public policy considerations.

5.2 Are the parties under any duties in relation to the arbitration?

No answer submitted for this question.

5.3 Are there any provisions of law which deal with multi-party disputes?

The Law on International Commercial Arbitration does not explicitly address multi-party disputes. In such cases, the applicable rules of the chosen arbitration institution will govern the procedure for multi-party disputes.

6 Applicable law issues

6.1 How is the law of the arbitration agreement determined in your jurisdiction?

The Law on International Commercial Arbitration does not explicitly address the law of the arbitration agreement.

6.2 Will the tribunal uphold a party agreement as to the substantive law of the dispute? Where the substantive law is unclear, how will the tribunal determine what it should be?

Yes, the tribunal will uphold an agreement between the parties on the substantive law of the dispute. Article 44 of the Law on International Commercial Arbitration clearly states that the tribunal must resolve the dispute in accordance with the legal rules chosen by the parties. Unless otherwise specified, any reference to the law of a particular state is interpreted as referring to its substantive law, excluding its conflict of laws rules.

If the parties have not agreed on the substantive law or if their choice is unclear, the tribunal will apply the law that it deems appropriate. Article 44 allows the tribunal to determine the applicable law based on conflict of laws principles that it considers relevant. In making this decision, the tribunal may evaluate various factors, such as:

• the nature of the contract;
• the place of performance of contractual obligations; and
• the jurisdiction that is most closely connected to the dispute.

Furthermore, Article 44 requires the tribunal to consider the terms of the contract and relevant trade customs applicable to the transaction. This ensures that decisions align with the parties' intentions and established commercial practices.

If the parties have expressly authorised it to do so, the tribunal may also decide the dispute based on equity or act as an 'amiable compositeur' (friendly intermediary). In such cases, the tribunal will resolve the matter based on principles of fairness and justice rather than strictly applying legal rules.

Thus, party autonomy is respected; and in its absence, the tribunal will apply appropriate legal principles and commercial customs.

7 Consolidation and third parties

7.1 Does the law in your jurisdiction permit consolidation of separate arbitrations into a single arbitration proceeding? Are there any conditions which apply to consolidation?

The Law on International Commercial Arbitration does not explicitly address the consolidation of separate arbitration proceedings into a single proceeding. In such cases, the applicable rules of the chosen arbitration institution will govern the procedure for consolidation.

7.2 Does the law in your jurisdiction permit the joinder of additional parties to an arbitration which has already commenced?

The Law on International Commercial Arbitration does not explicitly address the joinder of additional parties to an arbitration which has already commenced. In such cases, the applicable rules of the chosen arbitration institution will govern the procedure for consolidation.

7.3 Does an arbitration agreement bind assignees or other third parties?

In Uzbekistan, arbitration agreements generally do not automatically bind assignees or third parties unless they consent to the agreement or assume the obligations explicitly. Under the Law on International Commercial Arbitration, only the parties that originally consented to arbitration are bound by the arbitration clause.

8 The tribunal

8.1 How is the tribunal appointed?

In Uzbekistan, the tribunal's appointment is governed by:

• Article 16 of the Law on International Commercial Arbitration; and
• the applicable rules of the relevant arbitration institution.

The law allows the parties to mutually agree on the procedure for the appointment of arbitrators, provided that it aligns with the law's provisions. In the absence of such an agreement, the following rules apply:

• Three-arbitrator tribunal: Each party appoints one arbitrator and the two appointed arbitrators select the third. If a party fails to appoint an arbitrator within 30 days of a request or the two arbitrators cannot agree on the third within 30 days, the court will appoint the arbitrator upon a party's request.
• Sole arbitrator: If the parties cannot agree on the arbitrator, the court will appoint one upon a party's request.

If the agreed procedure for appointment fails (eg, a party does not comply, agreement cannot be reached or a third party fails to act), the competent state court may intervene to ensure appointment unless an alternative is specified in the agreement.

When appointing a sole or third arbitrator, the court:

• considers the parties' agreement on the qualifications of the arbitrators;
• ensures independence and impartiality; and
• may prefer an arbitrator of a different nationality from the parties.

Decisions made by the court in this context are final and are not subject to appeal.

8.2 Are there any requirements as to the number or qualification of arbitrators in your jurisdiction?

Article 15 of the Law on International Commercial Arbitration allows the parties to agree on the number of arbitrators. If no agreement is made, the default number is three.

While the law does not impose strict qualifications for arbitrators, if the appointment process is referred to the state court under Article 16, the court must take into account any qualifications agreed upon by the parties. In addition, arbitrators must be independent and impartial. The court prioritises these qualities when appointing arbitrators, particularly in cases where the appointment is made by the court.

8.3 Can an arbitrator be challenged in your jurisdiction? If so, on what basis? Are there any restrictions on the challenge of an arbitrator?

Yes, an arbitrator can be challenged in Uzbekistan under the Law on International Commercial Arbitration. The grounds for challenging an arbitrator are outlined in Article 17. A challenge can be made if:

• there are circumstances that raise reasonable doubts about the arbitrator's impartiality or independence; or
• the arbitrator does not meet the qualifications agreed upon by the parties.

A party may challenge an arbitrator whom it appointed or participated in appointing only based on facts that became known after the appointment.

Article 18 establishes the procedure for challenging an arbitrator. If no agreement exists between the parties on the challenge procedure, the party intending to challenge the arbitrator must submit written reasons to the arbitration tribunal within 15 days of learning about the composition of the tribunal or the relevant circumstances. If the challenged arbitrator does not resign or if the other party does not agree to the challenge, the tribunal will decide the matter.

If the challenge is rejected, the challenging party may appeal to the court within 30 days. The court's decision is final and cannot be appealed. During the challenge process, the arbitration can continue and the tribunal, including the challenged arbitrator, may proceed with the case.

Article 19 also provides for the termination of an arbitrator's mandate if he or she:

• is unable to perform his or her duties; or
• fails to do so without unjustified delay.

In such cases, a new arbitrator is appointed according to the original rules.

8.4 If a challenge is successful, how is the arbitrator replaced?

If a challenge to an arbitrator is successful or if the arbitrator resigns or is unable to fulfil his or her duties, the replacement process is handled as per Article 20 of the Law on International Commercial Arbitration. In such case, the replacement process involves appointing a new arbitrator in accordance with the same procedure used for the original appointment.

If necessary, the parties may request the competent state court's intervention to resolve any disputes about:

• the termination of an arbitrator's mandate; or
• the appointment of a replacement.

Such court decisions are final and are not subject to appeal.

8.5 What duties are imposed on arbitrators? Are these all imposed by legislation?

Uzbek law imposes some limited duties on arbitrators. Under Article 17 of the Law on International Commercial Arbitration, arbitrators must disclose any circumstances that may raise justified doubts about their impartiality or independence. This duty to disclose applies at the time of appointment and continues throughout the arbitration process. Additionally, Article 6 provides arbitrators with immunity from liability for their actions in arbitration, except in case of proven intentional misconduct.

Beyond these legislative requirements, other duties are typically governed by the arbitration rules chosen by the parties or specified in the arbitration agreement. These rules often provide a broader framework for the arbitrators' obligations, outlining responsibilities such as:

• conducting the proceedings fairly;
• ensuring equal treatment of the parties; and
• adhering to procedural timelines.

8.6 What powers does an arbitrator have in relation to: (a) procedure, including evidence; (b) interim relief; (c) parties which do not comply with its orders; (d) issuing partial final awards; (e) the remedies it can grant in a final award and (f) interest?

(a) Procedure, including evidence?

Under Article 34 of the Law on International Commercial Arbitration, arbitrators have the authority to determine procedural rules and assess evidence, including its admissibility and relevance, unless the parties have agreed otherwise.

(b) Interim relief?

According to Article 22 of the Law on International Commercial Arbitration, arbitrators can grant interim measures in order to:

• preserve assets;
• maintain the status quo; or
• prevent harm during the arbitration process.

(c) Parties that do not comply with orders?

Article 41 of the Law on International Commercial Arbitration addresses limited issues of non-compliance. If a party fails to file an arbitration request, the tribunal may terminate the case. If a party fails to submit a defence or appear at a hearing, the tribunal can proceed with the case and make a decision based on the available evidence, without assuming an admission of guilt.

(d) Issuing partial final awards?

The law does not specifically address whether arbitrators can issue partial final awards. In the absence of explicit provisions, this is generally governed by the rules of the relevant arbitration institution. Additionally, if the parties have not agreed otherwise:

• a party may request an additional award for claims not addressed in the original award within 30 days of receiving the award; and
• the tribunal must issue it within 60 days if deemed justified (Article 44).

(e) Remedies in a final award?

While the law does not list specific remedies, it grants arbitrators the flexibility to decide based on the governing substantive law, the parties' agreement and applicable contract terms or trade practices, as outlined in Article 44 of the Law on International Commercial Arbitration.

(f) Interest?

The law does not explicitly mention the power granted to arbitrators to award interest in a final award.

8.7 How may a tribunal seated in your jurisdiction proceed if a party does not participate in the arbitration?

If a party does not participate in arbitration proceedings seated in Uzbekistan, the tribunal may proceed in its absence, as outlined in Article 41 of the Law on International Commercial Arbitration. If the claimant fails to submit its statement of claim, the tribunal has the authority to terminate the arbitration. If the respondent does not submit a defence, the tribunal will continue the proceedings without considering the absence as an admission of the claims. Furthermore, if either party fails to attend hearings or submit evidence without a valid reason, the tribunal may still proceed and issue an award based on the evidence available.

8.8 Are arbitrators immune from liability?

Arbitrators in Uzbekistan are immune from liability for actions taken in connection with arbitration proceedings, as stipulated in Article 6 of the Law on International Commercial Arbitration. They are protected from claims by the parties or any other individuals, unless it is proven that their actions involved intentional misconduct. This immunity ensures that arbitrators can carry out their duties independently, without fear of personal liability, thereby promoting fairness and impartiality in the arbitration process.

Article 6 also specifies that arbitrators, experts appointed by the arbitration panel, the arbitration institution and its staff are not required to:

• provide explanations on any issues related to the arbitration; or
• be called as witnesses in judicial or other proceedings arising from the arbitration.

9 The role of the court during an arbitration

9.1 Will the court in your jurisdiction stay proceedings and refer parties to arbitration if there is an arbitration agreement?

In Uzbekistan, if there is a valid arbitration agreement between the parties, the court is generally required to stay its proceedings and refer the parties to arbitration. This is outlined in Article 13 of the Law on International Commercial Arbitration, which provides as follows:

• If a party brings a matter to court that is covered by an arbitration agreement, the court must refer the case to arbitration upon a request of the other party made no later than by the first substantive statement on the merits of the dispute.
• The court will stay its proceedings and refer the case to arbitration unless the arbitration agreement is found to be:
• • invalid;
  • inoperative; or
  • incapable of being performed.
• If such grounds exist, the court may continue the judicial proceedings.
• Arbitral proceedings may still be initiated or continued even if a matter is pending before the court, and the tribunal can issue an award while the court assesses the arbitration agreement's validity.

Additionally, Article 107 of the Economic Procedural Code (EPC) provides that if there is an agreement to refer a dispute to arbitration, the court will dismiss the case unless the possibility of arbitration has been lost. The respondent must request referral to arbitration at the first opportunity – typically in its initial statement on the merits of the dispute.

9.2 Does the court in your jurisdiction have any powers in relation to an arbitration seated in your jurisdiction and/or seated outside your jurisdiction? What are these powers? Under what conditions are these powers exercised?

In Uzbekistan, the courts have powers to assist and intervene in arbitration proceedings, applicable to arbitrations seated both within and outside the country. These powers are regulated by the EPC and the Law on International Commercial Arbitration.

Referral to arbitration: If a dispute is subject to a valid arbitration agreement, the court must stay the court proceedings and refer the parties to arbitration, unless the agreement is:

• invalid;
• inoperative; or
• incapable of being performed.

During arbitration proceedings: Under Articles 25 and 28-1 of the EPC and the Law on International Commercial Arbitration, courts may handle matters such as:

• the appointment of arbitrators if the parties fail to agree (Article 16 of the law);
• challenges to arbitrators and termination of their mandate (Article 17 of the law; Article 28-1 of the EPC);
• jurisdictional challenges if raised within 30 days of the tribunal's decision (Article 21 of the law);
• the issuance or enforcement of interim measures, including preservation of assets or evidence (Article 281 of the EPC); and
• assistance in gathering evidence for the arbitration.

Conditions for court intervention: These powers are exercised when:

• a valid arbitration agreement exists;
• procedural requirements such as deadlines are met; and
• justifiable grounds for action are present, such as procedural irregularities or issues regarding arbitrators' conduct.

The above powers apply only during arbitration. Recognition and enforcement of arbitral awards are handled separately and are not covered at this stage.

9.3 Can the parties exclude the court's powers by agreement?

Parties in Uzbekistan cannot fully exclude the court's powers through an agreement when it comes to arbitration. Certain court powers are mandatory and safeguard the integrity and enforceability of the arbitration process. Key points include the following.

Appointment and challenge of arbitrators: While parties may agree on a procedure for appointing arbitrators, if the process fails – such as a party not appointing an arbitrator – the court can step in to appoint or replace arbitrators under:

• Article 28 of the EPC; and
• Articles 16–18 of the Law on International Commercial Arbitration.

This power cannot be excluded, ensuring that arbitration proceeds smoothly.

Jurisdictional challenges: Courts retain the authority to review a tribunal's jurisdiction if a party challenges it within 30 days of the tribunal's decision (Article 21 of the Law on International Commercial Arbitration). This safeguard cannot be waived, as it prevents tribunals from exceeding their scope.

Interim measures and evidence: Although parties may limit some interim relief in their agreement, courts retain the power to issue or enforce interim measures and assist with obtaining evidence where necessary (Article 281 of the EPC). These powers support arbitration, especially in case of non-compliance.

Annulment of arbitral awards: Parties cannot waive the right to seek annulment of an arbitral award for reasons such as procedural violations or jurisdictional overreach (Article 50 of the Law on International Commercial Arbitration ; Article 281 of the EPC). This protects procedural fairness.

Recognition and enforcement of awards: Even if parties agree otherwise, courts play a mandatory role in confirming and enforcing arbitral awards under Articles 281 and Chapter 33 of the EPC, the New York Convention. This ensures compliance with national and international standards.

10 Costs

10.1 How will the tribunal approach the issue of costs?

The Law on International Commercial Arbitration does not explicitly regulate how the tribunal should approach the issue of costs in arbitration. In such cases, the tribunal is guided primarily by:

• the rules of the relevant arbitration institution; or
• the procedural framework agreed upon by the parties.

These rules typically address the allocation of arbitration costs – including tribunal fees, administrative expenses and parties' legal costs – based on principles such as:

• reasonableness;
• proportionality; and
• the outcome of the dispute.

10.2 Are there any restrictions on what the parties can agree in terms of costs in an arbitration seated in your jurisdiction?

The Law on International Commercial Arbitration does not explicitly regulate cost allocation, meaning that there are no direct legal restrictions on what parties can agree regarding costs. However, certain limitations may arise from the rules of the arbitration institution governing the proceedings.

For example, the Tashkent International Arbitration Centre (TIAC) Rules provide as follows:

• Parties have substantial freedom to agree on cost arrangements, including the allocation of tribunal fees and administrative expenses.
• However, they cannot entirely remove or pre-empt the tribunal's authority to determine the final allocation of costs in its award.
• The tribunal retains the discretion to assess and allocate costs based on:
• • the outcome of the case; and
  • the parties' conduct during the arbitration (as per Article 30 of the TIAC Rules).

These limitations aim to ensure fairness and procedural integrity while respecting party autonomy.

11 Funding

11.1 Is third-party funding permitted for arbitrations seated in your jurisdiction?

Third-party funding for arbitration is not explicitly regulated by the Law on International Commercial Arbitration, but nor is it expressly prohibited. This creates a neutral legal environment in which parties may benefit from third-party funding, provided that it does not conflict with public policy or general principles of law.

When arbitration is conducted under institutional rules, specific provisions may apply. For instance, the Tashkent International Arbitration Centre (TIAC) Rules permit third-party funding and provide guidelines to ensure transparency. Article 33 of the TIAC Rules requires parties to disclose any third-party funding arrangements, including the identity of the funder. This disclosure:

• helps to address potential conflicts of interest; and
• ensures the impartiality of the tribunal.

While national law does not mandate such disclosure, parties should ensure transparency to avoid challenges or disputes related to impartiality. Additionally, tribunals may consider the presence of third-party funding when allocating costs, particularly if the funding arrangement impacts the fairness or efficiency of the proceedings.

In summary, third-party funding is allowed in Uzbekistan, especially when institutional rules such as the TIAC Rules provide a framework for its use; but parties should ensure compliance with any applicable disclosure obligations.

12 Award

12.1 What procedural and substantive requirements must be met by an award?

An arbitral award in Uzbekistan must comply with specific procedural and substantive requirements, as outlined in the Law on International Commercial Arbitration:

• Form and signature:
• • The award must be in writing and signed by the arbitrator(s).
  • If there is more than one arbitrator, the signatures of the majority will suffice, provided that the absence of any signature is explained.
• Reasoning: The award must include the reasoning behind the decision unless:
• • the parties agreed that reasons need not be provided; or
  • unless the parties reach a settlement, and parties request and with no objections from the tribunal, to issue the settlement in the form of a consent award, which has the same legal force and effect as an award on the merits.
• Date and place:
• • The award must specify the date and the place of arbitration, as determined under Article 35 of the law.
  • The award is deemed made at the seat of arbitration. Parties can agree on the seat of arbitration. In the absence of such agreement, the tribunal will determine the seat, considering:
• • the circumstances of the case; and
  • convenience for the parties.
• Delivery to parties: A signed copy of the award must be delivered to each party.

These requirements ensure the award's:

• validity;
• enforceability; and
• compliance with procedural fairness principles.

12.2 Must the award be produced within a certain timeframe?

There is no specific mandatory timeframe under Uzbek law for the production of an arbitral award. The timing may depend on:

• the rules of the arbitration institution chosen by the parties; or
• the agreement between the parties and the tribunal.

13 Enforcement of awards

13.1 Are awards enforced in your jurisdiction? Under what procedure?

Arbitral awards, both domestic and foreign, are enforceable in Uzbekistan under the Economic Procedural Code (EPC). The procedures differ based on whether the award is domestic or foreign.

Domestic awards: Domestic awards issued in Uzbekistan are enforceable as binding decisions once the required formalities under the Law on International Commercial Arbitration are completed. The enforcement process is straightforward, requiring compliance with procedural requirements set out in the Economic Procedural Code of Uzbekistan (EPC).

Foreign awards: The enforcement of foreign arbitral awards is governed by Chapter 33 of the EPC, the New York Convention, to which Uzbekistan is a party.

The party seeking enforcement must submit an application to the economic court where the debtor resides or is registered.

The application must include:

• a certified copy of the arbitral award;
• the original or certified copy of the arbitration agreement;
• evidence of proper notice if the respondent did not participate in arbitration;
• proof of partial execution, if applicable; and
• payment of the court fees.

All the documents must be submitted with their certified translations where required.

The court will review the application within six months, notifying the parties of the hearing. It will examine procedural compliance and may refuse enforcement on grounds such as:

• the invalidity of the arbitration agreement;
• lack of due process; or
• public policy violations.

If recognised, the court will issue a writ of execution, enabling enforcement under Uzbek law.

Uzbekistan's adherence to the New York Convention ensures that foreign arbitral awards are recognised and enforced in line with international standards.

14 Grounds for challenging an award

14.1 What are the grounds on which an award can be challenged, appealed or otherwise set aside in your jurisdiction?

An arbitral award in Uzbekistan can be challenged or set aside by the economic courts on specific grounds provided in:

• the Law on International Commercial Arbitration; and
• the Economic Procedural Code (EPC).

These grounds align with international standards, such as those outlined in the New York Convention, to ensure fairness and procedural integrity.

Domestic awards: The grounds for setting aside domestic awards are as follows:

• Incapacity or invalid agreement: One party was incapacitated or the arbitration agreement was invalid under applicable law.
• Improper notification: A party was not properly notified about the arbitration or was unable to present its case.
• Exceeding scope: The award addresses issues that are beyond the scope of the arbitration agreement, unless separable portions can be enforced.
• Procedural irregularities: The tribunal's composition or arbitration procedure did not comply with the parties' agreement or applicable laws.
• Non-arbitrable matters: The subject matter is non-arbitrable under Uzbek law.
• Public policy violations: The award contradicts Uzbek public policy.

An application to set aside must be filed within three months of receiving the award. Courts cannot review the merits of the case but may suspend proceedings to allow the tribunal to address issues.

Foreign awards: Similar to domestic awards, foreign awards may be refused recognition if:

• the arbitration agreement was invalid;
• procedural fairness was not observed;
• the award conflicts with public policy; or
• the award has been set aside or is not binding.

These provisions safeguard both:

procedural integrity and the enforceability of arbitral awards in Uzbekistan.

14.2 Are there are any time limits and/or other requirements to bring a challenge?

In Uzbekistan, there are specific time limits and requirements for challenging an arbitral award.

Time limit: Under Article 50 of the Law on International Commercial Arbitration, a party seeking to set aside an arbitral award must file an application within three months of the date on which it receives the award. The application can be made on grounds such as:

• the incapacity of one party;
• the invalidity of the arbitration agreement;
• lack of proper notice; or
• the award exceeding the tribunal's authority.

Grounds for challenge: A challenge can also be made if:

• the dispute was not subject to arbitration; or
• the award violates public policy.

Additionally, the court will review only the procedural aspects and not the merits of the case.

Challenge by third parties: Article 2325 of the EPC allows third parties (not originally involved in the case) to challenge an award if it affects their rights and obligations. The challenge must be filed within three months of the date on which the party:

• receives the award; or
• becomes aware of the grounds for the challenge.

Suspension: If an application to set aside is filed, the court may, at the request of one of the parties, suspend the proceedings to allow the arbitral tribunal to take further action to resolve the issues leading to the challenge. The strict three-month time limit ensures finality while still allowing for legitimate challenges based on procedural fairness and public policy.

14.3 Are parties permitted to exclude any rights of challenge or appeal?

Parties cannot entirely exclude the right to challenge or appeal an arbitral award, as certain rights are mandatory under the law to ensure:

• procedural fairness; and
• adherence to public policy.

Under Article 50 of the Law on International Commercial Arbitration and Articles 256 of the EPC, certain grounds for challenging an award are non-waivable, including:

• the invalidity of the arbitration agreement;
• the incapacity of a party;
• lack of due process, such as improper notice or inability to present the case;
• the tribunal exceeding its authority; or
• a violation of Uzbek public policy.

These protections:

• uphold the integrity of arbitration; and
• ensure that awards comply with essential legal principles.

While parties have significant freedom in designing arbitration procedures, they cannot exclude court oversight on these fundamental rights. For example, agreements attempting to bar challenges based on procedural fairness or public policy violations will not be recognised by the Uzbek courts.

Parties may, however, waive or limit certain procedural rights that do not impact on core legal principles, such as waiving the right to appeal for minor procedural irregularities. These agreements are valid as long as they do not undermine mandatory legal safeguards or contradict public policy.

Overall, while parties can streamline arbitration by limiting some procedural aspects, they cannot waive rights that ensure:

• fairness;
• due process; and
• adherence to public policy.

15 Confidentiality

15.1 Is arbitration seated in your jurisdiction confidential? Is a duty of confidentiality found in the arbitration legislation?

Yes, arbitration seated in Uzbekistan is confidential. The duty of confidentiality is explicitly outlined in Article 53 of the Law on International Commercial Arbitration. This article requires that arbitration proceedings, as well as related documents, remain confidential unless the parties agree to waive this confidentiality. However, there are exceptions, such as when disclosure is:

• required by law;
• necessary to protect third-party rights; or
• necessary to enforce or challenge an arbitral award in court.

This provision ensures the privacy of arbitration in Uzbekistan, maintaining its role as a private and efficient dispute resolution mechanism.

15.2 Are there any exceptions to confidentiality?

Yes, there are exceptions to the general principle of confidentiality under the Law on International Commercial Arbitration. According to Article 53, the disclosure of arbitration proceedings and documents is permitted in the following circumstances:

• Where mandated by law: Disclosure is allowed if mandated by legal obligations.
• To protect third-party rights: Disclosure may occur if necessary to safeguard the rights of third parties involved.
• To enforce or challenge the arbitral award: Disclosure is permitted if necessary to enforce or challenge the arbitration award in court.

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.