ANNOUNCEMENT 01 Jan 2010In January 2010, the government of Kyrgyzstan announced altered domestic business conditions for foreign investors.
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In 2010, the joint venture Jerooyaltyn lost its licence for operations of Jerooy, the second-largest Kyrgyz gold deposit. Jerooyaltyn is owned 60 per cent by the Kazakh company Visor Holding and the remaining 40 per cent are the property of Kyrgyzaltyn, the Kyrgyz state gold company.
The Kyrgyz authorities justified their decision by arguing that Jerooyaltyn failed to begin the gold production.
Visor Holding has brought the case to the International Centre for Settlement of Investment Disputes (ICSID) and requests a compensation amounting to USD 400 million.