Shell global group of energy and petrochemical companies has paused its investments in Kazakhstan amid ongoing legal disputes with the government.

Speaking during an investor conference, Shell CEO Wael Sawan said the arbitration rulings linked to disputes with Kazakhstan are weighing on the company’s future investment decisions, The Caspian Post reports via foreign media.

“This affects our desire to continue investing in Kazakhstan,” he said, commenting on the outcomes of the legal proceedings.

Sawan noted that Shell will wait for “a clearer situation” before considering new investments. The disputes involve lawsuits filed by Kazakhstan against foreign partners in major oil and gas projects, with potential compensation in just one case estimated at up to $4 billion.

The CEO did not clarify whether the investment freeze applies to existing projects or only to new ones. Shell also declined to provide further details. At the same time, Sawan noted that the company continues to see long-term investment potential in Kazakhstan but is refraining from making decisions for now.

Shell is a participant in the Karachaganak project alongside Eni, Chevron, Lukoil, and KazMunayGas. The consortium still has the option to appeal the arbitration ruling.