On signing the Protocol between the Republic of Kazakhstan and the Czech Republic on Amendments and Additions to the Agreement between the Republic of Kazakhstan and the Czech Republic on the Promotion and Mutual Protection of Investments

Decree of the President of the Republic of Kazakhstan dated November 25, 2010 No. 1108

In accordance with article 8 of the Law of the Republic of Kazakhstan dated May 30, 2005 "On International Treaties of the Republic of Kazakhstan"

I DECREE:      

1. To approve the attached draft Protocol between the Republic of Kazakhstan and the Czech Republic on amendments and additions to the Agreement between the Republic of Kazakhstan and the Czech Republic on the Promotion and Mutual Protection of Investments.      

2. Authorize Vice Minister of Industry and New Technologies of the Republic of Kazakhstan Turganov Duissenbai Nurbayevich to sign on behalf of the Republic of Kazakhstan the Protocol between the Republic of Kazakhstan and the Czech Republic on amendments and additions to the Agreement between the Republic of Kazakhstan and the Czech Republic on the Promotion and Mutual Protection of Investments, allowing amendments and additions that are not fundamental.      

3. This Decree shall enter into force from the date of signing.

     President of the Republic of Kazakhstan N. Nazarbayev

APPROVED        

By Presidential Decree    

Of the Republic of Kazakhstan dated November 25, 2010 No. 1108

Project

protocol

between the Republic of Kazakhstan and the Czech Republicof amendments and additions to the Agreement between

The Republic of Kazakhstan and the Czech Republic on the Promotion and Mutual Protection of Investments

     The Republic of Kazakhstan and the Czech Republic, hereinafter referred to as the "Contracting Parties", have agreed to introduce the following amendments and additions to the Agreement between the Republic of Kazakhstan and the Czech Republic on the Promotion and Mutual Protection of Investments (hereinafter referred to as the Agreement), concluded on October 8, 1996 in Prague:

Article 1

     In Article 3, paragraph 3 should read as follows: "3. The provision on national and most-favored-nation treatment in accordance with this Article will not apply to benefits provided by a Contracting Party by virtue of its obligations arising from membership in a customs, economic or monetary union, a common market or a free trade area."; add paragraphs 4, 5 as follows: "4. Each of the Contracting Parties agrees that the obligations of the other Contracting Party, which is a member of the customs, economic or monetary union, common market or free trade area, include obligations arising from an international agreement concerning this customs, economic or monetary union, common market or free trade area.      5. The provisions of this Agreement may not be interpreted as an obligation of one of the Contracting Parties to provide to investors of the other Contracting Party, their investments or income such benefits, priorities or privileges that one Contracting Party is entitled to provide on the basis of the Agreement on the Avoidance of Double Taxation and the Prevention of Tax Evasion in Respect of Taxes on Income and Capital or other international agreements, related to taxation.".

Article 2

     The first paragraph of paragraph 1 of Article 6 should read as follows: "1. Without prejudice to the measures taken by the European Union, each Contracting Party in whose territory investments have been made by investors of the other Contracting Party, after fulfilling all tax obligations by investors, will provide these investors with a free transfer of payments related to these investments in freely convertible currency, unhindered and without unnecessary delay, in particular, but not exclusively:".

Article 3

     Paragraph 2 of Article 8 should be worded as follows: "2. If, in this way, the dispute between an investor of one Contracting Party and the other Contracting Party is not resolved within six months from the date of receipt of the written notification of the dispute, the investor may, at his option, submit it for consideration: a) to the competent courts of the State of the Contracting Party in whose territory the investments were made, or b) in International Center for Settlement of Investment Disputes (ICSID), subject to the applicable provisions of the Convention on the Settlement of Investment Disputes between States and Nationals of Other States of March 18, 1965, if each of the Contracting Parties is a party to this Convention, or c) to an arbitrator or an international court of arbitration "ad hoc" in accordance with the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). The parties to the dispute may agree in writing to amend these rules. The decision of the arbitral tribunal must be final and binding on both parties to the dispute, unless otherwise provided for in the relevant arbitration rules or international treaties to which both Contracting Parties are parties.".

Article 4

     1. Add Article 11 as follows:

"ARTICLE 11 BASIC SECURITY INTERESTS

     1. No provisions of this Agreement may be interpreted as preventing either Contracting Party from taking measures that it considers necessary to protect its basic security interests: a) in relation to criminal offences; b) in relation to trade in arms, ammunition and military equipment and operations with other goods, materials, services and technologies, carried out for the purpose of supplying military or other security structures; c) carried out during the war or extraordinary events in international relations;      d) related to the implementation of national policies or international treaties prohibiting the proliferation of nuclear weapons or other nuclear explosive installations, or e) in connection with their obligations under the UN Charter aimed at preserving international peace and security.      2. The main security interests of a Contracting Party may include interests arising from its membership in a customs, economic or monetary union, a common market or a free trade area." 2. Articles 11 and 12 are considered articles 12 and 13.

Article 5

     In article 12: the title should read as follows: "Article 13. Final provisions"; add paragraph 4 as follows: "4. By mutual agreement of the Contracting Parties, amendments and additions may be made to this Agreement, which are its integral parts, which are formalized in separate protocols.".

Article 6

     This Protocol is an integral part of the Agreement and shall enter into force upon the expiration of 60 (sixty) days from the date of receipt through diplomatic channels of the last written notification on the completion by the Contracting Parties of the internal procedures necessary for its entry into force.      This Protocol remains in force for the duration of the Agreement.

     Committed in the city __________ "__" __________ 2010 in two original copies, each in Kazakh, Czech and Russian, all texts being equally authentic.      In case of disagreement in the interpretation of the provisions of this Protocol, the Contracting Parties will refer to the text in Russian.

     FOR THE REPUBLIC OF KAZAKHSTAN FOR THE CZECH REPUBLIC

President    

Republic of Kazakhstan     

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