Uzbekistan wins seven-year legal battle against Turkish textile company

An international arbitration tribunal has ruled in favor of Uzbekistan, rejecting a $700 million claim filed by the Turkish textile company Bursel Tekstil Sanayi Ve Diş Ticaret A.Ş. against the Uzbek government. The decision was reported by Uzbekistan’s Ministry of Justice.

On October 10, 2024, the International Centre for Settlement of Investment Disputes (ICSID) issued a ruling on the arbitration case initiated by Bursel and Turkish nationals against Uzbekistan, dismissing all claims brought against the country.

Additionally, the tribunal ordered Bursel to cover Uzbekistan’s arbitration expenses. The case, initially launched by Bursel Tekstil in July 2017, had been ongoing for nearly seven years.

As per arbitration regulations, the tribunal’s decision is final and binding. The Uzbek government’s interests were defended by Uzbekistan’s Ministry of Justice alongside the Washington-based international law firm White & Case.

Bursel was legally represented by firms including Başpinar & Partners Law Firm, Besket Law LLC, C LLP, and Freshfields Bruckhaus Deringer LLP (until 2022).

Bursel Tekstil Sanayi ve Diş Ticaret A.Ş. invested in Uzbekistan in the early 2000s and was involved in the construction of a textile factory in Tashkent, a project supported by OPEC’s International Development Fund and the European Bank for Reconstruction and Development (EBRD).