On International Commercial Arbitration *


This Law regulates the relations connected with the formation and activities of international commercial arbitration.


CHAPTER I. GENERAL PROVISIONS

Article 1. Scope of this Law
1. This Law applies to international commercial arbitration if the place of arbitration is in the territory of Turkmenistan. The provisions of Articles 8, 9, 25, 26, 27, 46 and 47 of this Act shall apply in cases where the place of arbitration is outside Turkmenistan.
2. In international commercial arbitration may be transferred by mutual agreement:
disputes from contractual and other civil law relationships arising in the course of foreign trade and other forms of international economic relations, if the business of at least one of the parties is outside of Turkmenistan, as well as disputes enterprises with foreign investments, international associations and organizations established in the territory of Turkmenistan, together, disputes between their participants, as well as their disputes with other subjects of law of Turkmenistan. 3
. For the purposes of this Section:
1) if a party has more than one place of business, place of business is that which has the closest relationship to the arbitration agreement;


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* Translation from the state language of Turkmenistan.
2) If a party has no place of business, taking into account its habitual residence.
4. This Act does not affect the Fields of action of any other law of Turkmenistan, by virtue of which certain disputes may not be submitted to arbitration or may be submitted to arbitration only according to provisions other than those contained in this Law.
5. If an international treaty of Turkmenistan establishes rules other than those contained in this Act, the rules of the international treaty.

Article 2. Definitions and rules of interpretation
Certain Provisions of the Law
1. For the purposes of this Law the following basic concepts:
1) "international commercial arbitration" - an arbitral tribunal constituted specifically for the consideration of a particular dispute, or a permanent arbitration or arbitrator to consider the dispute alone;
2) "arbitrator" - capable person elected or appointed parties to the dispute agreed by the parties in the order in accordance with this Act for the resolution of the dispute to arbitration;
3) "arbitral tribunal" (arbitration court) - a sole arbitrator or a panel of arbitrators;
4) "court" - the relevant court of the judicial system of Turkmenistan or other States;

5) "public order" - the basis of the rule of law in Turkmenistan.
2. Where any provision of this Act, with the exception of Article 38, gives the parties the opportunity to make decisions on a particular issue, the parties may instruct the adoption of such decisions to a third party, including an arbitral institution.


3
. If any provision of this Law refers to the fact that the parties have agreed or may come to an agreement, or in any other way refers to an agreement between the parties, such agreement includes any arbitration rules referred to in this agreement.
4. When kakom-libo provision of this Law, except for paragraph 1 of article 35 and paragraph 1 of the second part of Article 42, refers to a claim, it also applies to a counter-claim, and where it refers to a defense, it also applies to a defense to counterclaim.

Article 3. Receipt of written communications
1. Unless the parties agree otherwise:
1) any written communication is deemed to have been received if it is delivered to the addressee personally or at his place of business, its permanent location (residence) or postal address. When none of these can be found after making reasonable inquiry, a written communication is deemed to have been received if it is sent to the last known place of business, habitual residence or mailing address by registered letter or any other means which provides a record of the attempt to deliver it;
2) the communication is deemed received on the day it is so delivered.
2. The provisions of this Article shall not apply to communications in court proceedings.

Article 4. Waiver of right to object
A party who knows that any provision of this Act from which the parties may derogate or any requirement under the arbitration agreement has not been complied with and nevertheless, it continues to participate in the arbitration without stating without undue delay an objection to such non-compliance, and if for this purpose is provided deadline, after this period, it is deemed to have waived his right to object.



Article 5. Extent of court intervention
In matters governed by this Law, no court shall intervene place, except in cases provided by this Law.

Article 6. Agencies performing functions
assistance and supervision of arbitration
1. The functions referred to in the third and fourth parts of Article 11, in the third part of Article 13, in the first part of Article 14 and in the third part of Article 16 of the Law, delegated to the Chairman of Chamber of Commerce of Turkmenistan.

2. The functions referred to in Section 45, executed by the Supreme Court of Turkmenistan and in the first part of Article 46 of this Law - velayat courts, and in the city of Ashgabat - the Arbitration Court of Turkmenistan.


CHAPTER II. ARBITRATION AGREEMENT

Article 7. Definition and form of arbitration agreement
1. "Arbitration agreement" - an agreement of the parties to submit to arbitration all or certain disputes which have arisen or may arise between them in respect of any particular legal relationship, regardless of whether it is contractual or not. An arbitration agreement may be in the form of an arbitration clause in a contract or in a separate agreement.
2. The arbitration agreement shall be in writing. The agreement is concluded in writing if it is contained in a document signed by the parties or signed by exchange of letters, telex, telegrams or other means of telecommunication that provide a record of the agreement, either by sharing the statement of claim and the response to the claim, in which one of the parties claims existence of an agreement, and the other does not object. The reference in a contract to a document containing an arbitration clause constitutes an arbitration agreement provided that the contract is concluded in writing and the reference is such as to make arbitration clause part of the contract.
Article 8. Arbitration agreement and presentation
appeal to the court on the merits
1. The court before which an action is brought in a matter which is the subject of an arbitration agreement shall, if a party so requests not later than when submitting his first statement on the substance of the dispute, refer the parties to arbitration unless it comes to the conclusion that the agreement was null and void, force or incapable of being performed.
2. In the case of an action referred to in the first part of this article, the arbitral proceedings may be commenced or continued, and an arbitral award is rendered, the dispute on jurisdiction is pending before the court.

Article 9. Arbitration agreement and

Court interim measures addressed by any party to the court before or during arbitral proceedings, an application for provisional or protective measures and for a court ruling on the adoption of such measures does not negate the arbitration agreement.


CHAPTER III. COMPOSITION OF THE ARBITRATION COURT

Article 10. Number of arbitrators
1. The parties are free to determine the number of arbitrators, which must be odd.
2. If the parties do not determine this amount, in the prescribed manner shall be three arbitrators.

Article 11. Appointment of arbitrators

1. No person shall be deprived of the right to act as an arbitrator on account of his nationality, unless the parties agree otherwise.
2. The parties are free to agree on a procedure of appointing the arbitrator or arbitrators, subject to the requirements prescribed by the fourth and fifth of this article. 3
. In the absence of such an agreement:

1) in an arbitration with three arbitrators, each party shall appoint one arbitrator and the two arbitrators so appointed shall appoint the third arbitrator. If a party fails to appoint an arbitrator within thirty days of receipt of a request to do so from the other party or if the two arbitrators within thirty days from the date of their appointment fail to agree on the third arbitrator, at the request of any party to an arbitrator appointed by the authority specified in Article 6 this Act;
2) in an arbitration with a sole arbitrator, if the parties within thirty days after the treatment of one of the parties for arbitration do not agree on the choice of an arbitrator, the arbitrator may be appointed by the agency referred to in Article 6 of this Law.
4. If the appointment procedure agreed upon by the parties: it does not comply with such a procedure
1) one of the parties;
or 2) the parties, or two arbitrators can not reach agreement in accordance with such procedures;
or 3) a third party, including an arbitral institution, does not perform any function entrusted to it under such procedure,
any party may apply to the authority mentioned in Section 6 of this Act, with a request to take the necessary measures, unless the agreement on the appointment procedure provides other means for securing the appointment.
5. The decision on any matter shall be taken in accordance with the third or fourth parts of this article are not subject to appeal.
6. When appointing an arbitrator, the body referred to in Section 6 of this Act, take into account any requirements for the qualification of the arbitrator in accordance with the agreement between the parties and to such considerations, which may provide for the appointment of an independent and impartial arbitrator. In the case of a sole or third arbitrator shall be taken into account also the advisability of appointing an arbitrator of a nationality other than those States to the parties.



Article 12. Grounds for challenging an arbitrator,

1. In the case of appeal to any person in connection with his possible appointment as an arbitrator, he shall disclose any circumstances likely to give rise to justifiable doubts as to his impartiality or independence. An arbitrator, from the time of his appointment and throughout the arbitral proceedings, shall without delay notify the parties of any such circumstances, if it has not notified them of the circumstances previously.
2. An arbitrator may be challenged only if circumstances exist that give rise to justifiable doubts as to his impartiality or independence, or if he does not possess qualifications agreed to by the parties. A party may challenge an arbitrator whom it has appointed or in whose appointment it has participated, only for reasons of which he becomes aware after the appointment.

Article 13. The procedure for challenging an arbitrator
1. The parties are free to agree on a procedure for challenging an arbitrator, subject to the requirements stipulated by the third part of this article.
2. In the absence of such agreement the party who intends to challenge an arbitrator shall, within fifteen days after becoming aware of the constitution of the arbitral tribunal or of any circumstance referred to in Section 12 of this Act shall be in writing to the arbitral tribunal reasons for the challenge. If the arbitrator being challenged does not withdraw from his office or the other party agrees to the challenge, the disqualification is decided by the arbitral tribunal. 3
. If a challenge under any procedure agreed upon by the parties or under the procedure provided for by part two of this article is not successful, the challenging party may, within thirty days after receiving notice of the decision rejecting the challenge, the authority specified in Article 6 of this Act, decide on the challenge, which is not subject to appeal. Before deciding the arbitration court, including the arbitrator being challenged, has the right to proceed with the arbitration and make an award.

Article 14. Failure or
impossibility to act

1. In the event that an arbitrator is legally or de facto unable to perform his functions or for other reasons not to implement them without undue delay, his mandate (mandate) terminate if the referee takes himself or herself or the parties agree on the termination of his powers. In other cases where differences remain concerning any of these grounds, any party may apply to the authority mentioned in Section 6 of this Act, an application for a decision on termination of powers of the arbitrator. not appealable judgment.
2. arbitrator withdraws or the parties consent to the termination of its powers in accordance with this Article or by part two of Article 13 of this Law shall not imply recognition of any of the grounds referred to in this article or in the second part of Article 12 of this Law.

Article 15. Replacement of an arbitrator
Upon termination of the powers of an arbitrator under Articles 13 or 14 of this Act, or to the fact that he takes himself or herself for any other reason, or due to the abolition of his office with the consent of the parties, as well as any another case of the termination of his powers, the new arbitrator shall be appointed in accordance with the rules that were applicable to the appointment of the arbitrator being replaced.


CHAPTER IV. COMPETENCE OF THE ARBITRATION COURT

Article 16. The right to an arbitration tribunal to
rule on its jurisdiction
1. The arbitral tribunal shall rule on its own jurisdiction, including any objections with respect to the existence or validity of the arbitration agreement. For this purpose, an arbitration clause which forms part of a contract shall be construed as an agreement independent of the other terms of the contract. The arbitration court decision on the invalidity of the contract does not entail the invalidity of the arbitration clause.
2. Statement on the absence of the arbitral tribunal shall be raised not later than in the statement of defense. Appointment of an arbitrator by or her participation in the appointment of an arbitrator is not precluded from raising such a plea. The statement that the arbitral tribunal is exceeding the limits of their competence, must be done as soon as the question which, in the opinion of the parties, beyond these limits will be raised during the arbitral proceedings. The arbitral tribunal may, in either case, admit a later plea if it deems a reasonable delay.
3
. The arbitral tribunal may rule on a plea referred to in Paragraph two of this article either as a preliminary question or in an award on the merits. If the arbitral tribunal rules on a preliminary question that it has jurisdiction, any party within thirty days after receiving notice of that ruling may apply to the authority mentioned in Section 6 of this Act. not appealable judgment. Before deciding the arbitral tribunal may continue the arbitral proceedings and make an award.


CHAPTER V. INTERIM MEASURES AND PRELIMINARY PROVISIONS


§ 1. Interim measures

Article 17. The powers of the arbitral tribunal
for the adoption of interim measures
1. If the parties have agreed otherwise, the arbitral tribunal may, at the request of any party, order any party to such interim measures in respect of the subject matter, as it deems necessary.
2. An interim measure is any temporary measure - regardless of whether taken out if it is in the form of an award or in any other form (written order), - by means of which at any time prior to the issuance of the award, which the dispute is finally decided, the arbitral tribunal It disposes of, to one or the other side:
1) Maintain or restore the situation that existed before the resolution of the dispute;
2) adopted measures to prevent damage to the side of or damage to arbitration or refrain from taking action that might cause such damage;
3) provided funds for the preservation of assets due to which a subsequent award may be enforced;
4) Preserve evidence that may be relevant and material to the resolution of the dispute.

Article 18. The conditions for the adoption of interim measures
1. The party requesting an interim measure under paragraphs 1, 2 and 3 of the second paragraph of Article 17 of this Law, the arbitral tribunal shall assure that:
1) can be caused damage which can not be properly eliminated by damages if the decision the adoption of such a measure will not be issued and the amount of such damage significantly exceeds the amount of damage that may be caused to the party against whom the measure if the measure is granted;
and 2) there is a possibility that the requesting party will receive a positive result on the merits of the claim. The determination on this possibility shall not affect the freedom of the discretion of the arbitral tribunal in making any subsequent determination.

2. With regard to the request for an interim measure pursuant to paragraph 4 of the second part of Article 17 of this Law, the requirements under paragraphs 1 and 2 of this Article shall apply only to the extent the arbitral tribunal considers appropriate.

§ 2. Preliminary rulings

Article 19. The request for a preliminary
decision on interim measures and
the conditions for its issuance
1. Unless the parties otherwise agree, a party may, without notice to any other party to submit to arbitration court's request for an interim measure together with an application for interim measures a preliminary order directing a party not to frustrate the objectives of the interim measure requested.
2. The arbitral tribunal may grant a preliminary order on interim measures if it deems that the prior disclosure of information relating to a request for an interim measure to the party against whom it is directed risks frustrating the purpose of the measure. 3
. Terms defined in Article 18 of this Law shall apply to any preliminary order of interim measures provided that the harm to be assessed in accordance with paragraph 1 of Section 18 of this Act is the damage that may be caused as a result of being granted or not prior decision on interim measures.

Article 20. The special regime prior
decision on interim measures
1. Immediately after the arbitral tribunal will make a preliminary ruling on interim measures, the parties notified the court of arbitration on the request for an interim measure, the application for a preliminary order on interim measures and all other communications, including oral communications between any party and the arbitral tribunal relating to the foregoing.
2. Simultaneously, the arbitral tribunal shall provide to any party against whom a preliminary order on interim measures, the opportunity to state its position on them within the time specified by the arbitral tribunal. 3
. The arbitral tribunal shall decide promptly on any objection to the parties to the preliminary order on interim measures.

4. A preliminary order on interim measures expire after twenty days from the date of the arbitration court. At the same time, the arbitral tribunal may order an interim measure adopting or modifying an interim measure, after the party against whom a preliminary order on interim measures, and an opportunity to present its case.
5. Preliminary ruling on interim measures shall be binding on the parties, but it can not be enforced in court. Such a preliminary order on interim measures does not constitute an award.


§ 3. Provisions applicable to interim measures and

preliminary rulings

Article 21 Modification, suspension, cancellation
interim measures and preliminary
decision on interim measures
The arbitral tribunal may modify, suspend or terminate an interim measure or a preliminary ruling on interim measures at the request of one of the parties or, in exceptional circumstances, on their own initiative after notice of the parties.

Article 22. Provision of security
1. The arbitral tribunal may require the party requesting an interim measure to provide appropriate security in connection with the measure.
2. The arbitral tribunal shall require the party applying for a preliminary order making an interim measure to provide security in connection with the order unless the arbitral tribunal considers it inappropriate or unnecessary.

Article 23. Disclosure
1. The arbitral tribunal may require any party promptly to disclose any material change in the circumstances on the basis of which the interim measure was requested or granted.
2. The party applying for interim measures a preliminary order shall disclose to the arbitral tribunal all circumstances that may be relevant to the arbitral tribunal prior decision or abandon it in force, and this commitment remains as long as the party against whom the preliminary ruling, will not be given the opportunity to state its position. Subsequently, apply the provisions of this Article.

Article 24 Costs and damages

The party requesting an interim measure or applying for a preliminary order making an interim measure, be liable for any costs and damages caused by the measure or the order to any party if the arbitral tribunal later determines that, in the circumstances, this measure should not have been or the order should not be imposed.
The arbitral tribunal may award such costs and damages at any point during the proceedings.


§ 4. Recognition and enforcement of interim measures


Article 25. Recognition and enforcement
interim measures
1. An interim measure issued by the arbitral tribunal, recognized as binding and, unless the arbitral tribunal does not provide otherwise, enforced upon application to the competent court, irrespective of the country in which it was issued, subject to the provisions stipulated in Article 26 of this Law.
2. A party who seeks recognition and enforcement of an interim measure shall promptly inform the court of any termination, suspension or modification of that interim measure. 3
. The court of the State where the recognition and enforcement, may, if it deems it proper, order the requesting party to provide appropriate security if the arbitral tribunal has made a determination with respect to security or where such a decision is necessary to protect the rights third parties.

Article 26. Grounds for refusing recognition or
Enforcement of interim measures of protection
1. Recognition or enforcement of an interim measure may be refused only:
1) at the request of the party against whom it is invoked if the court finds that:
- such refusal is warranted on the grounds set out in the second, third, fourth or fifth paragraph 1 of Section 47 of this Act; or
- the decision of the arbitral tribunal with respect to security in connection with the interim measure issued by the arbitral tribunal has not been fulfilled; or
- The interim measure has been terminated or suspended by the arbitral tribunal or, if it has the appropriate authority, the court of the State where the arbitration takes place or under the legislation which was enacted that interim measure;
or 2) if the court finds that:

- The interim measure is not compatible with the powers conferred upon the court, unless the court decides to change the wording of the interim measure to the extent that is necessary for it to bring into line with its own powers and procedures for bringing this interim goals measures performance and without changing its substance;
or - the grounds set forth in the second or third paragraphs of paragraph 2 of Section 47 of this Act, apply to the recognition and enforcement of an interim measure.
2. Determination made by the court on any ground specified in part one of this article shall be effective only for the purposes of the application for recognition and enforcement of an interim measure. The court where recognition or enforcement of the interim measure sought, in making that determination will not consider the substance of the measures.


§ 5. Provisional measures prescribed by the court

Article 27. Interim measures prescribed

Court The Court shall have the same power of issuing interim measures in connection with the arbitration, regardless of whether the place of the proceedings in the State, as well as the powers available to it in connection with legal proceedings. The court shall exercise such power in accordance with the rules of proceedings provided for by the legislation of Turkmenistan, taking into account the specific features of international arbitration.


CHAPTER VI. MANAGEMENT OF ARBITRATION

Article 28. Equal treatment of parties
The parties shall be treated with equality and each party shall be given every opportunity to present his case and present evidence.




Article 29. Determination of rules of procedure
1. Subject to the requirements of this Law, the parties are free to agree on the procedure of conducting the proceedings the court of arbitration.
2. In the absence of such agreement, the arbitral tribunal may, subject to the requirements of this Law, conduct the arbitration in such manner as it considers appropriate. The power conferred upon the arbitral tribunal includes the power to determine the admissibility, relevance, materiality and weight of any evidence.

Article 30. Place of arbitration
1. The parties may agree on the place of arbitration. In the absence of such agreement, the place of arbitration shall be determined by the arbitral tribunal taking into account the circumstances of the case, including the convenience of the parties.

2. Notwithstanding the provisions of this Article, the arbitral tribunal may, unless otherwise agreed by the parties, meet at any place it considers appropriate for consultation among its members, for hearing witnesses, experts or the parties, or for inspection of goods, other property or documents.

Article 31. Commencement of arbitral proceedings
Unless the parties agree otherwise, the arbitral proceedings in respect of a particular dispute commence on the date on which a request for that dispute to arbitration is received by the respondent.

Article 32. Language of arbitration
1. The parties are free to agree on the language or languages ​​to be used in the arbitral proceedings. In the absence of such agreement, the arbitral tribunal shall determine the language or languages ​​to be used in the proceedings. This agreement or determination, unless they otherwise stated, refer to any written statement by a party, any hearing and any award, decision or other communication by the arbitral tribunal.
2. The arbitral tribunal may order that any documentary evidence accompanied by a translation into the language or languages ​​agreed upon by the parties or determined by the arbitral tribunal.

Article 33. Statement of Claim and Statement of Defence
1. During the period of time agreed by the parties or a particular arbitral tribunal, the claimant shall state the facts supporting his claim, on the issues to be resolved, and the content of its claim
claims, and the respondent shall state his defense to these requirements, unless the parties have agreed otherwise in respect of the required elements of such statements. The parties may submit with their statements all documents they consider to be relevant or may add a reference to the documents or other evidence they will submit.
2. Unless the parties agree otherwise, in the arbitral proceedings either party may amend or supplement his claim or defense on the claim, unless the arbitral tribunal considers it inappropriate to allow such amendment or supplement taking into account the delay.

Article 34. Hearings and proceedings on documents

1. Subject to any other agreement parties, the arbitral tribunal shall decide whether to hold oral hearings for the presentation of evidence or for oral argument, or whether the proceedings shall be only on the basis of documents and other materials. However, unless the parties have agreed not to hold an oral hearing, the arbitral tribunal shall hold such hearings at an appropriate stage of the proceedings, if so requested by one of the parties.
2. The parties shall be given sufficient advance notice of any hearing and of any meeting of the arbitral tribunal for the purposes of inspection of goods, other property or documents. 3
. All statements, documents or other information supplied to the arbitral tribunal by a party shall be communicated to the other party. Parties should also be transferred to any expert report or other documents of evidence nature, on which the arbitral tribunal may rely in making decisions.

Article 35. Default of a
hand
Unless the parties agree otherwise, in those cases, without showing good cause:
1) the claimant fails to communicate his statement of claim in accordance with the first paragraph of Article 33 of this Law, the arbitral tribunal shall terminate the proceedings;
2) the respondent fails to communicate his statement of defense in accordance with the first paragraph of Article 33 of this Law, the arbitral tribunal shall continue the proceedings without treating such failure in itself as an admission of the claimant's allegations;
3) a party fails to appear at a hearing or to produce documentary evidence, the arbitral tribunal may continue the proceedings and make the award on the evidence before it.

Article 36. Expert appointed by arbitral tribunal
1. If the parties have agreed otherwise, the arbitral tribunal may:
1) assigned to report to it on specific issues of one or more experts who are determined by the arbitral tribunal;
2) require a party to give the expert any relevant information or to produce for inspection and provide access to, any relevant documents, goods or other property.
2. In the absence of agreement between the parties to the contrary, the expert, if so requested by a party or the arbitral tribunal considers it necessary, after delivery of his written or oral report, participate in a hearing where the parties shall be given the opportunity to ask questions and provide expert witnesses to testify their testimony on controversial issues.
Article 37. Court assistance in taking evidence

The arbitral tribunal or a party with the consent of the arbitral tribunal may request the competent court of this State with a request for assistance in taking evidence. The Court will fulfill the request within its competence, guided by the rules on taking evidence, including a summer residence by court orders.


Chapter VII. MAKING OF AWARD AND TERMINATION OF PROCEEDINGS OF THE CASE


Article 38. Legal regulations applicable to substance
dispute
1. The arbitral tribunal shall decide the dispute in accordance with such rules of law, which are chosen by the parties as applicable to the substance of the dispute. If there is no indication to the contrary, any reference to the rights or legal system of a State shall be construed as directly referring to the substantive law of that State and not to its conflict of laws rules.
2. In the absence of any indication parties, the arbitral tribunal shall apply the right determined in the conflict of laws rules which it considers applicable. 3
. In all cases, the arbitral tribunal shall decide in accordance with the terms of the contract and taking into account the usages of the trade applicable to the transaction.

Article 39. Decision making by panel of arbitrators
In arbitral proceedings with more than one arbitrator, any decision of the arbitral tribunal, unless the parties agree otherwise, it shall be made by a majority of the arbitrators. However, questions of procedure may be decided by the arbitrator, being the chairman of the tribunal, if it is authorized by the parties or all of the other arbitrators.

Article 40. Settlement Agreement
1. If during the arbitration the parties will enter into a settlement agreement, the arbitral tribunal shall terminate the proceedings and records reached a settlement agreement in the form of an arbitral award on agreed terms by the parties.
2. An award on agreed terms, the parties shall be made in accordance with Article 41 of this Law and shall contain an indication of the fact that it is an award. This award has the same effect and is enforceable in the same way as any other award on the merits.

Article 41. Form and contents of award
1. The award shall be made in writing and signed by the arbitrator or panel of arbitrators. In arbitral proceedings with more than one arbitrator, the signatures of the majority of the arbitrators, provided that the reason for the lack of the other signatures of the arbitrators.

2. The award shall state the reasons upon which it is based, except in cases where the parties have agreed that no reasons are to be given or the award is an award on agreed terms by the parties in accordance with Article 40 of this Law. 3
. The award shall state the date of its adoption and the place of arbitration as determined in accordance with the first paragraph of Article 30 of this Law. The arbitration decision shall be made at that place.
4. After the award to each party issued its copy signed by the arbitrator (arbitrators) in accordance with the first paragraph of this article.

Article 42. Termination of arbitration
1. The arbitral proceedings are terminated by the final award or by an order of the arbitral tribunal in accordance with the second part of this article.
2. The arbitral tribunal shall issue an order on the termination of the arbitral proceedings when:
1) the claimant withdraws his claim, if the defendant has not put forward an objection to the termination of proceedings and the arbitral tribunal recognizes a legitimate interest of the defendant in the final settlement of the dispute;
2) the parties agree to terminate the proceedings;
3) the arbitral tribunal finds that the continuation of the proceedings has for any other reason become unnecessary or impossible. 3
. The powers of the arbitrator or the arbitral tribunal terminates with the termination of the arbitration proceedings, but without prejudice to the provisions of Article 44 and Part IV of Article 45 of this Law.

Article 43. The decision on costs
1. Unless the parties have agreed otherwise, the arbitral tribunal shall determine in the arbitral award, in what proportion the parties shall bear the costs associated with the arbitration, including the costs incurred by the parties and the need for the expedient resolution of the dispute. This arbitration court is guided by good faith discretion, taking into account the circumstances of the particular case, in particular the outcome of the proceedings.
2. If the costs associated with the arbitration, have been identified, the arbitral tribunal will also determine to what extent the parties should bear such costs. In the case where the determination of costs did not take place or is possible only at the termination of the proceedings, the decision on them in a special award.

Article 44. Correction and interpretation of the arbitration
solutions. Additional award
decision

1. Within thirty days after receipt of the award, unless the parties have agreed another term:
1), either party, with notice to the other party, may request the arbitral tribunal to correct any assumptions award errors in computation, any clerical or typographical errors, or any errors of a similar nature;
2) if so agreed between the parties, either party, with notice to the other party, may request the arbitral tribunal to give an interpretation of a specific point or part of the award.
The arbitral tribunal, if it deems the request grounded, shall, within thirty days after its receipt to make the correction or give the interpretation.
The interpretation shall form part of the award.
2. Arbitration Court within thirty days from the date of the award may, at its own initiative, correct any error referred to in paragraph 1 of this Article, and to the parties a notice of such revision. 3
. Unless the parties agree otherwise, either party, with notice to the other party may, within thirty days after the receipt of the award, request the arbitral tribunal to make an additional award as to claims that were claimed during the arbitral proceedings but omitted from the arbitral decision. The arbitral tribunal, if it deems the request grounded, shall, within sixty days make an additional award.
4. The arbitral tribunal may, if necessary, extend the period within which it shall make a correction, interpretation or an additional award in accordance with the first or the third part of this article.
5. The provisions of Article 41 of this Law shall apply to a correction or interpretation of the award or to an additional award.


CHAPTER VIII. APPEAL ARBITRATION DECISION


Article 45. Application for setting aside as exclusive
recourse against arbitral award
1. The appeal court award may only be made by filing a petition in the Supreme Court of Turkmenistan to abolish in accordance with the second and third parts of this article.
2. An arbitral award may be set aside by the Supreme Court of Turkmenistan if:
1) the party making the application furnishes proof that:
- one of the parties to the arbitration agreement referred to in Article 7 of this Act, was in some incapacity; or the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, - according to the legislation of Turkmenistan; or

- She was not given proper notice of the appointment of the arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or
- the arbitral award rendered in a dispute not contemplated by resolution by arbitration, or not falling within the terms of reference to arbitration, or contains provisions on matters which fall outside the scope of the arbitration agreement. Provided that the provisions on matters submitted to arbitration can be separated from those that are not subject to arbitration, it can only be canceled that part of the award which contains provisions on matters not submitted to arbitration; or
- composition of the arbitral tribunal or the arbitral procedure was not consistent with the parties' agreement, unless such agreement is not contrary to any provision of this Act from which the parties can not derogate, or, in the absence of such an agreement, does not comply with this Act;
or 2) the court finds that:
- subject of the dispute is not subject to arbitration under the law of Turkmenistan; or
- the award is contrary to public policy of Turkmenistan. 3
. An application for setting aside may not be made after three months from the date on which the party making that application had received the award, and if the request had been made in accordance with Article 44 of this Act - from the date of the arbitral tribunal on this request.
4. In the case of a request for cancellation of the award, the court may, if it deems it appropriate and if so requested by one of the parties, suspend the question of the abolition for the term established by them, in order to give the arbitral tribunal an opportunity to resume the arbitral proceedings or to take other actions, which, according to the arbitration court, will eliminate the grounds for setting aside an award.


CHAPTER IX. RECOGNITION AND ENFORCEMENT
of the award

Article 46. Recognition and enforcement
the award
1. The arbitration decision no matter what country it was made, when applying to court Turkmenistan written request shall be recognized and enforced subject to the requirements stipulated by part two of this article and article 47 of this Law, and in accordance with the procedural legislation of Turkmenistan and its international agreements.

2. The party relying on an award or applying for its enforcement shall supply the original award or a certified copy thereof, and the original arbitration agreement referred to in Article 7 of this Act, or a certified copy thereof. If the award or agreement is in a foreign language, the party shall submit a certified translation thereof into the official language of Turkmenistan.

Article 47. Grounds for refusing recognition and
Enforcement of arbitral
solutions
1. Recognition and enforcement of an arbitral award, regardless of the country in which it was made, may be refused only:
1) at the request of the party against whom it is invoked, if that party furnishes to the competent court in which recognition is sought, or enforcement, proof that:
- one of the parties to the arbitration agreement referred to in article 7 of this Law was under some incapacity; or the said agreement is not valid under the law to which the parties have subjected it or, failing any indication thereon, - under the law of the country where the award was made; or
- the party against whom the award is invoked was not given proper notice of the appointment of the arbitrator or of the arbitral proceedings or was otherwise unable to present his case; or
- the arbitral award rendered in a dispute not contemplated by resolution by arbitration, or not falling within the terms of reference to arbitration, or contains provisions on matters which fall outside the scope of the arbitration agreement. Provided that the provisions on matters submitted to arbitration can be separated from those that are not subject to arbitration, that part of the award, which contains provisions on matters submitted to arbitration may be recognized and enforced; or
- composition of the arbitral tribunal or the arbitral procedure was not consistent with the agreement of the parties or, failing such, did not meet the laws of the country where the arbitration took place; or
- the award has not yet become binding on the parties or has been set aside or suspended by a court pursuant to the country in which, or in which it was made according to the law;
or 2) if the court finds that:
- subject of the dispute is not subject to arbitration under the law of Turkmenistan; or
- Recognition and enforcement of the award would be contrary to the public policy of Turkmenistan.

2. The enforcement of an arbitral award may also be refused if its execution violates the principle of sovereign immunity of Turkmenistan, given that Turkmenistan is in a clear manner not renounced such immunity. 3
. If the court referred to in paragraph six of paragraph 1 of this Article, application for setting aside or suspension of an arbitration award, the court in which recognition or enforcement is sought may, if it deems it proper, adjourn its decision and may also on the application of the party claiming recognition or enforcement of the award, order the other party to provide appropriate security.

Article 48. Entry into force of this Act
1. This Law shall enter into force on 1 January 2016.
2. The Cabinet of Ministers of Turkmenistan to the date of entry into force of this Act:
1) be brought into line with the present Law normative legal acts of the Cabinet of Ministers of Turkmenistan;
2) to develop and adopt normative legal acts necessary for the implementation of the provisions of this Act. 3
. This Law applies to international commercial arbitration decision rendered after its entry into force.



President Gurbanguly Berdimuhamedov of Turkmenistan




Mountains. Ashgabat
16 August 2014
number 101-V.