On approval of the agreement between the Government of the Republic of Kazakhstan and the Government of the Kyrgyz Republic on promotion and mutual protection of investments

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Law of the Republic of Kazakhstan dated October 28, 1997 No. 174

To approve the agreement between the Government of the Republic of Kazakhstan and the Government of the Kyrgyz Republic on the promotion and mutual protection of investments, signed in Almaty on April 8, 1997.

President Of The Republic Of Kazakhstan

Agreement between the Government of the Republic of Kazakhstan and the Government of the Kyrgyz Republic on promotion and mutual protection of investments

Entered into force on May 1, 2005 (official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan)

The Government of the Republic of Kazakhstan and the Government of the Kyrgyz Republic, hereinafter referred to as the "Contracting Parties", realizing that the support and mutual protection of investments will promote the development of mutually beneficial trade, economic, scientific and technical cooperation between the two Contracting Parties, as well as increase the well-being of both states, striving to create favorable conditions for investors of one Contracting Party to invest in the territory of the other Contracting Party, equality, mutual respect, based on the principles of sovereignty and mutual benefit, they agreed on:

Article 1 definitions

For the purposes of this Agreement: 1. the term "investment" means any asset invested by an investor of one Contracting Party in the territory of another Contracting Party, in particular, but not only: a) movable and immovable property and any other property rights related to them, including the right to hold a trust, mortgage or other collateral, and cash in bank accounts and other financial institutions; B) shares, deposits (units), bonds and any other form of participation in enterprises, business partnerships and societies, associations and other legal entities recognized by the laws registered in accordance with the laws of each of the Contracting Parties; C) loans, loans, targeted banking and financial investments and other monetary claims related to the implementation of investments; d) rights to intellectual and industrial property objects, including copyrighted objects, patents, trademarks, service marks, brand names, industrial designs and "know-how"; e) reinvestment of income and increments under principal debt payments and loan agreements; e) rights to economic activities acquired under law or contract, including the right of concession expressed through exploration, development, production or use of Natural Resources. 2. The term "investor" means: a) an individual who is a citizen of one of the Contracting Parties and makes investments in accordance with its laws in force on the territory of the other Contracting Party; B) a legal entity established in accordance with the laws of either contracting party, located on its territory and making investments in the territory of the other contracting party, associations with or without the right of a legal entity. 3. The term "income" means: money or funds in real form and any other funds obtained by legal means, including profits obtained as a result of or associated with the implementation of investments, dividends, remuneration for managing the enterprise, maintenance. 4. The term "territory" refers to: Contracting Parties: means the state territory of the contracting parties, including free economic zones, continental shelf and subsoil, where the contracting parties exercise their sovereign rights and jurisdiction in accordance with international law. 5.changing the form of investment allowed in accordance with the laws of the Contracting Party on the territory of which the investment was made does not change its nature as an investment.

Article 2 promotion and protection of investments

1.each Contracting Party promotes investments by investors of the other Contracting Party and authorizes such investments in accordance with its laws. 2.each Contracting Party shall ensure a fair and equitable environment for investments by investors of the other Contracting Party and shall not be pressured into the circulation, use or disposal of these investments by means of withdrawal or discriminatory measures by the management.

Article 3 legal regime of investments

1.each of the Contracting Parties shall ensure a regime for investments in its territory that is no less favorable for investments by its investors and investments by investors from third countries. 2. this regime shall: A) the benefits granted by one of the Contracting Parties to investors of individual countries in connection with their joint participation in the customs or economic free trade union; B) benefits granted by one of the Contracting Parties to an investor of individual countries on the basis of an agreement on the avoidance of double taxation or other agreements on tax issues.

Article 4 protection guarantees from expropriation

1.investments of investors of one of the Contracting Parties shall not be requisitioned, taken under the jurisdiction of the state, expropriated or other measures shall not be taken that entail such consequences as requisition, nationalization, expropriation (hereinafter referred to as expropriation), which shall not include cases when the expropriation was carried out in the interests of society and carried out: - in accordance with the procedure established by law; - without discrimination; - without delay payment of any compensation. 2. Said compensation will be equal to the market value of the investment on the day preceding the date of the expropriation decision or publication. Compensation must include an increase corresponding to the current investment rate and calculated for the period between the expropriation date and the date of actual payment of compensation. Compensation is paid in the same currency in which the investment was made, or in any other currency with the consent of the investor. Compensation must be transferred abroad without restrictions and without excessive delay.

Article 5 compensation for damage

1.investors of the other Contracting Party whose investments have been damaged as a result of a war or other armed conflict, emergency, civil conflict or such circumstances in the territory of one Contracting Party shall be provided with a regime not less favorable than that applicable to their investors or investors of a third country when compensating for the damage caused to them as a result of the above circumstances. At the same time, payments made will be freely circulated and freely transferred. 2. In any case referred to in this paragraph, without prejudice to Paragraph (1) of this article, investors of one contracting party shall be subject to compensation or compensation if, in the territory of the other Contracting Party: a) their property is seized by law enforcement agencies and military forces or authorities; or B) their property is damaged as a result of destruction by law enforcement agencies or military forces or authorities in cases not caused by military actions or circumstances. At the same time, payments made will be freely circulated and freely transferred.

Article 6 transfer of payments related to investments

1. the Contracting Parties guarantee that all transfers of funds related to investments will be made freely and without excessive delay, in a freely circulating currency in which the capital was originally placed, or in any other currency agreed with the investor and the interested contracting party, in accordance with the procedure established by the laws of the Contracting Party, which shall include: - rules for the registration of such transfers, taking into account not; - protection of the legal rights of creditors or ensuring the implementation of decisions made during judicial review may be provided. Transfers to this Agreement: - initial and additional invested capital; - profit; - compensation in accordance with Articles 4 and 5 of this Agreement;-payments in accordance with the loan agreement, as well as remuneration related to intellectual and industrial property rights; - remuneration on a permanent basis for individuals of the second Contracting Party engaged in investment-related activities; - includes the profit from the sale or disposal of part or all of the investment. 2.the procedure referred to in this article must be fair and non-discriminatory. If there is no other agreement with the investor, transfers are made at the exchange rate established in accordance with the current exchange rules on the date of transfer. A transfer made during the time normally required to perform the form actions related to the transfer is considered a transfer without "excessive delay".

Article 7 subrogation

1.if a Contracting Party or any institution to which it has authorized pays any investor of its state within the framework of a guarantee or insurance concluded in connection with the investment, the second contracting party shall be recognized as having transferred to the first contracting party or its institution any rights or claims belonging to the investor. The party receiving the investor's rights or any of its institutions shall have the right to claim the rights held by the investor and such rights in the same amount, while the provisions relating to the obligations of the investor in connection with the investments insured in this way are specifically mentioned. 2.in the case of subrogation established by paragraph 1 of this article, an investor may not file a claim if he is not authorized by the Contracting Party or any of its institutions.

Article 8 disputes between the Contracting Parties

1.disputes between the contracting parties related to the interpretation and application of the provisions of this Agreement shall be resolved through diplomatic channels. 2.if the contracting parties do not agree within six months from the date of birth of the dispute, the dispute shall be submitted to an arbitration court consisting of three members at the request of any contracting party. Each of the contracting parties appoints one arbitrator, and the appointed arbitrators select a chairman who is a citizen of a third state in diplomatic relations with both Contracting Parties. 3. If one of the contracting parties does not appoint an arbitrator and does not agree within two months with the invitation of the other Contracting Party to make such an appointment, the arbitrator is appointed by the president of the International Court of Justice of the United Nations in The Hague at the request of that Contracting Party. 4.if both arbitrators cannot reach an agreement on the selection of the chairman within two months from the date of their appointment, the chairman is appointed by the president of the International Court at the request of any contracting party. 5. If, in the cases referred to in paragraphs 3 and 4 of this article, the president of the International Court of justice fails to perform this function, or if he is a citizen of one of the contracting parties, then such appointment is made by the Vice-President, and if he is also unable to perform the relevant functions, or is a citizen of one of the contracting parties, then the appointment is made by a judge of the International Court of Justice of the highest rank who is not a citizen of any of the Contracting Parties. 6. Establishes its own rules for the procedure of the arbitration court without violating other resolutions between the contracting parties. The arbitration court makes a decision by a majority vote. 7.each of the Contracting Parties shall pay the costs of maintaining its member of the court in accordance with its share in the arbitration procedure; the costs and other costs of maintaining the chairman shall be reimbursed equally by the Contracting Parties. But in its decision, the court may establish a greater participation of one of the Contracting Parties, and this decision obliges both Contracting Parties. 8. The court decision is final and binding on each of the Contracting Parties.

Article 9 settlement of Investment Disputes

1.in order to resolve an investment dispute between the Contracting Party and the investor of the other contracting party, negotiations shall be conducted between the interested parties, not lessening the provisions of Article 8 of this Agreement. 2. If, within six months from the date of the written proposal to start negotiations, the negotiations do not end with a decision, the parties to the dispute may agree on the transfer of the dispute to any of the following organizations: A) to the International Center for the settlement of Investment Disputes (March 19, 1965 in Washington, D.C., (B) to the Arbitration Court of the International Chamber of Commerce; or C) to the international arbitrator or ad hoc arbitration tribunal, which must be appointed by a special agreement or established in accordance with the arbitration rights of the UN Commission on international trade law. 3. If, within three months from the date of filing a written claim, no agreement has been reached on the use of one of the above alternative procedures, then this dispute may be submitted to arbitration at the written request of interested investors in accordance with the current arbitration rules of the UN Commission on international trade law.

Article 10 application of other provisions

If the provisions of the laws of each of the Contracting Parties or their obligations under international law, currently existing or subsequently established as an addition to this agreement between the contracting parties, include provisions that give the investment of investors of the second contracting party the right to a more favorable treatment than provided for in this Agreement, then such provisions shall prevail over this agreement to the extent that they are most acceptable.

Entry into force of Article 11

This agreement is subject to approval and comes into force from the date of exchange of certificates of approval.

Article 12 validity period and termination

1.this agreement is valid for ten years. After that, it remains in force until the expiration of twelve months from the date of sending a written notification to the other Contracting Party on its termination by one of the Contracting Parties. At the same time, it is stipulated that in relation to investments made during the period of validity of this agreement, its provisions will continue to apply for ten years from the date of termination of the agreement and will then apply to the provisions of international law without prejudice. 2.this Agreement may be amended by written agreement between the Contracting Parties. Any amendment must enter into force if each of the Contracting Parties informs the other party of the harmonization of all its conditions that prevent such an amendment from entering into force. In 8 kokek, 1997, two original copies were made in Almaty, each in Kazakh, Kyrgyz and Russian, and the entire text is equally valid. In case of discrepancies in the interpretation of the provisions of this Agreement, the Contracting Parties are guided by the text of the agreement in Russian.

For the Government of the Republic of Kazakhstan for the Government of the Kyrgyz Republic

President

Republic of Kazakhstan

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