We invested in Kyrgyzstan and faced many problems. You can read a summary of our problems here.

When our problems started, we tried negotiating with Nurgazy Nurgaziev, the local partner. It did not work. His demands were unreasonable, and getting more unreasonable over time. I guess this is what happens when rule of law is weak.

Shareholders have many forms of protection under Kyrgyz law. At least in theory! We called an emergency general meeting of Trilight LLC. Nurgazy did not attend, even though it is required by law. We called another meeting. He again did not attend. The laws there are, it was disregarded by Nurgazy and not enforced by the authorities.

We asked Financial Police and its successor, State Service for Combating Economic Crimes, for assistance. They opened and closed investigations 4 times. Couple of times, it was stated in writing that the reason for closing the case was unjustified, hence it was reopened. We then managed to get a criminal case opened. The case was suspended. We wrote to the President of Kyrgyzstan and got the suspension lifted. Currently a criminal case is open.

The problems arose because of how Nurgazy viewed ‘foreign’ shareholders, and his perspective on following laws and contracts. We would have avoided the problems if we did not do business with him. Owning 100% of the business is a way to avoid problems with local shareholders. Unless you can find a partner that you are 100% sure will respect laws and agreements.

Owning 100% of the business would require substantial amounts of time on the ground. Kyrgyzstan has many investment opportunities, and foreign investment funds have very little activity there. If you want to explore investment opportunities in Kyrgyzstan, consider moving there!

What can you do to ensure that the laws are enforced? Many foreign investors have found a solution, a very effective one! They chose not to invest in Kyrgyzstan. This is unfortunate since there are investment opportunities. There must be other solutions. We remain optimistic. We received support from many Government institutions. Our experience clearly shows that there are people in Government who want to see that things are done properly. This is promising. We will continue our battle to see justice done.

Note: A criminal case is currently open. These are two most recent letters I received from the prosecutor.

уведомление

Opening of Criminal Case March 2018

Follow us on Facebook to keep updated: https://www.facebook.com/trilightcase