On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of Malaysia on the Promotion and Protection of Investments

Home / RLA / On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of Malaysia on the Promotion and Protection of Investments

Law of the Republic of Kazakhstan dated June 11, 1997 No. 120-I

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of Malaysia on the Promotion and Protection of Investments, signed on May 27, 1996 in Kuala Lumpur.

President of the Republic of Kazakhstan

application

Agreement between the Government of the Republic of Kazakhstan and Government of Malaysia on the Promotion and Protection of Investments (Kuala Lumpur, May 27, 1996)

(the text is unofficial)

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on August 3, 1997)

The Government of the Republic of Kazakhstan and the Government of Malaysia, hereinafter referred to as the "Contracting Parties", wishing to expand and strengthen cooperation in the field of economics and industry on a long-term basis, and, in particular, to create favorable conditions for investments by investors of one Contracting Party in the territory of the other Contracting Party; Recognizing the need to protect the investments of investors of both Contracting Parties and stimulate the flow of investment and private entrepreneurship for the economic prosperity of both Contracting Parties, agreed as follows:

Article 1 Definitions 1. For the purposes of this Agreement: (a) "investments" means any type of funds and, in particular, but not exclusively, includes: (i) movable and immovable property and any other property rights such as mortgages, the right to seize property and liens; (ii) shares, bonds and debentures of companies or participation in in the capital of such companies; III) claims for monetary amounts or any other claims of financial value; (IV) Intellectual and industrial property rights, including copyrights, patents, trademarks, trade names, industrial designs, trade secrets, technical processes and know-how and goodwill; (V) Commercial concepts provided for by law or contract, including concepts for the exploration, exploration, extraction or exploitation of natural resources b) "income" means the amounts received from investments and in particular, although not exclusively, include profits, interest, profits from operations on the stock exchange, dividends, royalties or fees; c) "Investor" means: (i) any natural person who has nationality or permanent residence in the territory of a Contracting Party in accordance with its legislation; or (ii) any corporation, partnership, trust, joint venture, organization, association or enterprise founded or duly incorporated in accordance with the legislation of a Contracting Party; d) "territory" means: 1) with respect to the Republic of Kazakhstan, it means the state territory, including free economic zones, the continental shelf and the subsoil over which the Republic of Kazakhstan exercises its sovereign rights and jurisdiction in accordance with international law; 2) with respect to Malaysia, all land territories, including the Federation of Malaysia, the territory of the sea, its the bottom and subsurface, and the airspace above them; e) "currency of free circulation" means the US dollar, the pound sterling, the Deutsche mark, the French franc, the Japanese yen or any other currency that is widely used for making payments on international transactions and is widely traded on the main international currency markets. 2. (I) The term "investments" referred to in paragraph 1 (a) refers only to all investments that are carried out in accordance with the laws, regulations and national policies of the Contracting Parties. (II) Any change in the form in which assets are invested should not affect their classification as investments, provided that such a change does not contradict the authorization, if any, issued in respect of these assets originally invested.

Article 2 Promotion and protection of investments 1. Each Contracting Party will promote and create favorable investment conditions for investors of the other Contracting Party in its territory and, in accordance with its laws, regulations and national policies, allow such investments. 2. The investments of investors of each Contracting Party will always be provided with equal treatment and the right to full and adequate protection and security in the territory of the other Contracting Party.

Article 3 Provisions on the most-favored-nation treatment 1. Investments made by investors of any Contracting Party in the territory of the other Contracting Party will be provided with fair and equitable treatment and no less favorable than that provided to investments made by investors of any third State. 2. The provisions of this Agreement regarding the provision of a regime no less favorable than that provided to investors of any third State should not be interpreted as an obligation of one Contracting Party to extend to investors of the other Party the benefits of any regime, preferences or privileges arising from: a) any existing or future customs union or free trade area or common market or a monetary union or similar international agreement or other forms of regional cooperation, to which any of the Contracting Parties is or will be a party; or the conclusion of an agreement aimed at establishing or extending such a union or zone for a reasonable period of time; or b) any international announcement or agreement wholly or mainly related to taxation, or any domestic legislation wholly or mainly related to taxation.

Article 4 Compensation of losses Investors of one Contracting Party whose investments in the territory of the other Contracting Party suffer losses as a result of war or other armed conflict, revolution, state of emergency, reconstruction or rebellion in the territory of the latter Contracting Party will be provided by the latter Contracting Party with respect to restitution, reparations, compensation or other settlement appropriate treatment no less favorable than that, which the latter Contracting Party provides to investors of any third State.

Article 5 Expropriation None of the Contracting Parties will take any measures to exploit or nationalize the investments of an investor of the other Contracting Party, except for the following conditions: a) the measures are taken for legitimate or public purposes and in accordance with due process of law; b) the measures are not discriminatory; c) the measures are accompanied by provisions on the payment of immediate adequate and effective compensation. Such compensation should be equal to the market value of the investment, effective immediately before it became generally known about the alienation measures, and it should be freely converted into the currency of free circulation from the Contracting Party. Any unjustified delay in payment of compensation must be accompanied by an appropriate percentage at the commercial rate agreed upon by both parties or at the rate prescribed by law.

Article 6 Repatriation of investments 1. Each Contracting Party, depending on its laws, regulations and national policies, will allow, without undue delay, the transfer in any currency of free circulation: a) net profits, dividends, royalties, technical assistance and technical fees, interest and other current income, savings from any investments of investors of the other Contracting Party; b) income from the total or partial liquidation of any investment made by investors of the other Contracting Party; c) amounts from the payment of loans/credits provided by investors of one Contracting Party to investors of the other Contracting Party, which both Contracting Parties have recognized as investments; d) income and other compensation of investors of one Contracting Party who are employed and to whom It is allowed to work in connection with investments in the territory of another Contracting Party. 2. The exchange rate applicable to such transfer in accordance with paragraph 1 of this Article is the prevailing exchange rate at the time of transfer. 3. The Contracting Parties shall grant the transfers referred to in paragraph 1 of this Article the same favourable treatment as that accorded to transfers related to investments made by investors of any third State.

Article 7 Settlement of investment disputes between a Contracting Party and an investor of the other Contracting Party 1. Each Contracting Party agrees to submit to the International Center for Settlement of Investment Disputes (hereinafter referred to as the "Center") for settlement through conciliation or arbitration under the Convention on Settlement of Investment Disputes between States and Nationals of Other States, opened for signature in Washington on March 18, 1965, any dispute arising between that Contracting Party. and by an investor of the other Contracting Party, which includes: I) the obligation, concluded by that Contracting Party with an investor of the other Contracting Party with respect to investments by such investor; or (ii) a declaration of infringement of any right submitted or created in accordance with this Agreement with respect to investments by such investor. 2. A company founded or incorporated under the laws in force in the territory of one Contracting Party, and in which, prior to the occurrence of such a dispute, the majority of shares belonged to investors of the other Contracting Party, in accordance with Article 25 (2) (b) of the Convention, for the purposes of the Convention, shall be considered as a company of the other Contracting Party. 3. (I) If any dispute referred to in paragraph 1 arises, the Contracting Party and the investor will seek to resolve the dispute through consultations and negotiations. If the dispute cannot be resolved in this way within three (3) months, and if the investor also agrees in writing to submit the dispute to the Center for consideration in order to resolve it through conciliation or arbitration in accordance with the Convention, any party to the dispute may initiate proceedings by sending a request to the Secretary General of the Center, as provided for in articles 28 and 36 of the Convention, provided that the investor has not submitted the dispute to a court or an administrative court or an agency of the competent jurisdiction of the Contracting Party., they participate in the dispute. II) in case of disagreement as to which is the most appropriate procedure - conciliation or arbitration, the opinion of the interested investor prevails. The Contracting Party participating in the dispute should not raise as an objection, defense or right of set-off of claims at any stage of the proceedings or enforcement of a court decision the fact that the investor, who is the other party participating in the dispute, has fully or partially received or will receive compensation in accordance with the insurance contract or guarantee contract losses or harm, or other compensation for losses incurred or harm caused. 4. Neither Contracting Party shall initiate proceedings through diplomatic channels in respect of any dispute referred to the Center, unless: (I) the Secretary General of the Center or a conciliation commission or arbitration court established by him decides that the dispute does not fall under the jurisdiction of the Center; or (ii) the other Contracting Party does not comply with or does not comply with any decision made by the arbitration court.

Article 8 Settlement of Disputes between the Contracting Parties 1. Disputes between the Contracting Parties concerning the interpretation or application of this Agreement should be settled, if possible, through diplomatic channels. 2. If the dispute between the Contracting Parties cannot be settled in this way, it shall be referred to an arbitration court at the request of either Contracting Party. 3. Such an arbitration court is established for each individual case as follows. Each Contracting Party shall appoint one member of the court within two months from the date of receipt of the request to hold a trial. These two members then select a citizen of a third State, who, with the approval of the two Contracting Parties, is appointed President of the Court. The Chairman is appointed within two (2) months from the date of appointment of the other two members. 4. If, during the periods specified in paragraph 3 of this Article, the necessary appointments are not made, any Contracting Party may, in the absence of any other agreement, invite the President of the International Court of Justice to make the necessary appointments. If the President is a citizen of either of the Contracting Parties, or if for any other reason he cannot be allowed to perform this function, the Vice President will be invited to make the necessary appointments. If the Vice-President is a national of either Contracting Party, or if he is also unable to perform the specified function, a member of the International Court of Justice, the next in seniority, who is not a citizen of either Contracting Party, will be invited to make the necessary appointments. 5. The Arbitration Court shall render its decision by a majority vote. Such a decision is binding on both Contracting Parties. Each Contracting Party shall bear the costs of its member of the court and of its representation in the official proceedings.; The costs of the Chairman and the remaining costs are paid by the Contracting Parties in equal shares. The Court may, however, specify in its decision that the majority of the costs will be paid by one of the two Contracting Parties, and this decision is binding on both Contracting Parties. The Court will determine its own procedure.

Article 9 Subrogation If a Contracting Party or its authorized agency makes a payment to one of its investors, in accordance with the guarantee provided by it in respect of investments, the other Contracting Party, without prejudice to the rights of the first Contracting Party, in accordance with Article 7, Recognizes the transfer of any right or claim of such investor to the first Contracting Party or its authorized agency and the subrogation of the first Contracting Party or its authorized agency to any right or claim.

Article 10 Application of investments This Agreement applies to investments made in the territory of either Contracting Party in accordance with its laws, regulations and national policies by investors of the other Contracting Party before and after the entry into force of this Agreement.

Article 11 Additions This Agreement may be supplemented by mutual agreement of the Contracting Parties at any time after its entry into force. Any modification or modification of this Agreement must be made without prejudice to the rights and obligations arising from this Agreement until the date of such modification or modification, until these rights and obligations are fully fulfilled.

Article 12 Entry into force, duration and Termination 1. This Agreement shall enter into force thirty (30) days after the last date on which the Governments of the Contracting Parties have notified each other that their constitutional requirements for the entry into force of this Agreement have been fulfilled. The latest date is the date when the last notification was sent. 2. This Agreement is concluded for a period of ten (10) years and will remain in force until it is terminated in accordance with paragraph 3 of this Article. 3. Any Contracting Party may terminate this Agreement by written notification to the other Contracting Party no later than one year before the end of the ten-year (10) period or at any time thereafter. 4. With respect to investments made or acquired prior to the date of termination of this Agreement, the provisions of all other Articles of this Agreement will continue to be in force for a period of ten (10) years from the date of such termination. In witness whereof, the undersigned, being duly authorized by their respective Governments, have signed this Agreement. Done in Kuala Lumpur on May 27, 1996, in two originals, each in the Kazakh, Malay, Russian and English languages, all texts being equally authentic. In case of any discrepancies in interpretation, the English text will prevail.

President

Republic of Kazakhstan

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