Ottawa reacted to the seizure of Canadian-run Gold Mine by Kyrgyzstan, expressing its deep concerns and disappointment with the decision taken at the parliament of Kyrgyzstan.
“As a significant investment partner of the Kyrgyz Republic, Canada is very concerned about continued developments in the mining sector. We are disappointed with the decision taken at the extraordinary session of the Parliament of the Kyrgyz Republic on May 17 to move forward with the imposition of external management on the Kumtor Gold Company, and statements made during the parliamentary session that Kyrgyz control will be sought over a publically traded Canadian-based company with multiple international assets. This will potentially have far-reaching consequences on foreign direct investment in the Kyrgyz Republic,” Marc Garneau, the Minister of Foreign Affairs of Canada and Mary Ng, the Minister of Small Business, Export Promotion and International Trade said in a joint statement.
“Canada is also disappointed that this dispute between foreign investors and the Government of the Kyrgyz Republic was not allowed to be resolved transparently by the parties working together,” the statement added.
“Full economic recovery from COVID-19 requires a transparent and fair business environment,” the statement said, adding that “Measures such as this that have the potential to reduce trade and foreign direct investment will further undermine the economic livelihoods of the Kyrgyz people.”
The parliament of Kyrgyzstan passed a law allowing the state temporarily take over Kumtor gold mine.
This comes as a court in Kyrgyzstan recently imposed a $3.1 billion fine on Kumtor Gold Company, ruling that the company had violated environmental laws.