Commercial Litigation in Uzbekistan: A Short Practical Guide for Foreign Companies

Foreign companies conducting business in Uzbekistan may, from time to time, encounter contractual, corporate or financial disputes with local counterparties. A clear understanding of the commercial litigation framework in Uzbekistan is essential for effectively protecting both legal and commercial interests.

This guide provides a practical and accessible overview of commercial litigation in Uzbekistan, specifically tailored for foreign companies and investors.

I. Competence and Jurisdiction

Commercial disputes in Uzbekistan are primarily reviewed by the Economic Courts. These courts have jurisdiction over disputes arising out of commercial activities between legal entities, individual entrepreneurs and shareholders (individuals) in connection with corporate or business-related matters.

Uzbek legislation grants foreign companies the right to initiate claims against Uzbek counterparties before local courts on an equal footing with domestic entities.

II. Key Stages of Commercial Litigation

Commercial litigation generally involves the following stages:

A. Pre-trial stage

A pre-trial procedure is mandatory where required by law or agreed by the parties in the relevant contract. For example, in certain categories of disputes (including recovery of banking loans), the claimant must first send a formal demand (claim) letter to the counterparty.

B. Filing of the statement of claim

The claimant submits a statement of claim together with supporting evidence to the competent court. The claim must be accompanied by proof of payment of the applicable state duty and evidence confirming delivery of the statement of claim to the defendant.

Jurisdiction is determined based on the defendant’s place of registration, the place of contractual performance and any dispute resolution or jurisdiction clauses contained in the contract.

Courts may grant interim measures such as asset freezes or prohibitions on certain actions to secure the claim. A petition for interim measures may be filed at any stage of the proceedings and can have a significant strategic impact on the dispute.

C. Court hearings and decision

During court hearings, the court examines evidence, hears the parties’ legal arguments, and, where applicable, considers witness testimony. Proceedings at the first-instance court typically last up to three months.Foreign companies may participate in proceedings through their executives or through local legal counsel acting under a duly issued power of attorney.

Proceedings are conducted in Uzbek or Russian. Foreign documents must be legalized or apostilled (as applicable) and accompanied by a notarized translation.

Upon completion of the hearings, the court issues a final judgment.

D. Enforcement

Court judgments are enforced through the competent enforcement authorities. The duration of enforcement depends on various factors, including the availability of the debtor’s assets, the complexity of enforcement actions, and the level of cooperation by the debtor.

III. Fees and Costs

State court fees in Uzbekistan are generally moderate and calculated based on the amount of the claim.

Legal fees vary depending on the complexity of the dispute, amount at stake and the number of court instances involved. Fee arrangements may include fixed fees, staged fees, or where permitted, success-based elements.

Additional costs may include expenses related to translation and notarization, expert opinions, and enforcement proceedings.

Why Choose Us

Our team consists of best litigation lawyers in Uzbekistan with over ten years of practice representing foreign clients in civil, commercial, and administrative courts across Uzbekistan. We closely monitor and apply recent Supreme Court practice, which plays a crucial role in shaping litigation strategy and delivering cost-effective, commercially sound solutions for our clients.

In addition, one of our team members previously served as a judge of a regional economic court, enabling us to assess disputes from the court’s perspective and anticipate judicial reasoning at each stage of the proceedings.

Contact us at info@fairlex.uz