On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Arab Republic of Egypt on the Promotion and Mutual Protection of Investments
DECREE of the President of the Republic of Kazakhstan dated September 15, 1995 N 2460
I decree: 1. To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the Arab Republic of Egypt on the Promotion and Mutual Protection of Investments, signed in Cairo on February 14, 1993. 2. This Decree shall enter into force from the date of publication.
President of the Republic of Kazakhstan
Application
Agreement
between the Government of the Republic of Kazakhstan and
By the Government of the Arab Republic of Egypt
on the promotion and mutual protection of investments
(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on March 28, 1997)
The Government of the Republic of Kazakhstan and the Government of the Arab Republic of Egypt, hereinafter referred to as the "Contracting Parties", striving to develop and strengthen trade, economic, scientific and technical cooperation between the two States, desiring to promote, protect and create favorable conditions for investments by investors of one Contracting Party in the territory of the other Contracting Party, based on the principles of mutual respect for sovereignty, equality and mutual benefit, convinced that, That mutual encouragement and protection of investments are intended to stimulate the transfer of capital and the exchange of advanced technology between the two States in the interests of their economic development, agreed as follows:
Article 1 For the purposes of this Agreement: 1. The term "Investment" means all types of property assets that are invested in the territory of the Contracting Party receiving the investment, in accordance with its legislation, including, in particular: a) movable and immovable property and any related property rights; b) shares and other forms of participation in companies; c) rights of claims for cash and any obligations having economic value; d) intellectual property rights, including copyrights to industrial property, trademarks, trade names, appellations of origin, trade secrets, "know-how" and technology; e) rights to carry out economic activities granted in accordance with legislation or contracts, including, in particular, the rights to exploration, development, extraction and exploitation of natural resources. 2. The term "Investor" means in relation to each of the Contracting Parties: - individuals who are citizens of this Contracting Party in accordance with its legislation; - as well as stateless persons permanently residing in its territory; - legal entities established in accordance with the legislation in force on the territory of this Contracting Party; - provided that that these individuals and legal entities are authorized, in accordance with the legislation of this Contracting Party, to make investments in the territory of the other Contracting Party. The term "investment-related activities" includes the establishment, operation, and maintenance of companies, enterprises, or other organizations for the purpose of conducting business; the conclusion and execution of contracts; the acquisition, use, and disposal of all kinds of property, including intellectual property rights; the purchase, issue, and sale of shares and other securities in accordance with law. The term "income" means the amounts received from or in connection with investments, including profits, dividends, interest, capital gains, royalty payments, managerial, technical and other remuneration. 4. The term "territory" means: - the territory of the Republic of Kazakhstan and the territory of the Arab Republic of Egypt, respectively; - territorial waters forming the maritime borders of the mentioned territories, in accordance with international standards.
Article 2 1. Each of the Contracting Parties, in accordance with its legislation and the provisions of this Agreement, shall allow and encourage investments made in its territory by investors of the other Contracting Party. 2. Each of the Contracting Parties, in accordance with its legislation, shall assist investors of the other Contracting Party in obtaining visas and work permits in connection with investments made in its territory.
Article 3 1. Each of the Contracting Parties undertakes to ensure fair and equitable treatment and protection in its territory in respect of investments of investors of the other Contracting Party and activities related to such investments. 2. The regime referred to in paragraph 1 of this Article will be no less favourable than the regime provided for investments by investors of any third State and activities related to such investments. 3. The provisions of paragraphs 1 and 2 of this Article shall not apply to benefits and advantages that a Contracting Party either grants or will provide in the future to investors of any third State or their investments on the basis of: - its participation in a free trade area, customs or economic union, mutual economic assistance organization or in an international agreement providing for benefits and advantages similar to those provided by the Contracting Party to the participants of these organizations; - an international agreement and other agreement on taxation; - agreements on cross-border trade.
Article 4 1. Investments of investors of one of the Contracting Parties made in the territory of the other Contracting Party may not be nationalized, expropriated or subjected to other measures having similar consequences to nationalization or expropriation (hereinafter referred to as "expropriation"), except in cases where such measures are taken in the public interest, in compliance with the legislation, on a non-discriminatory basis and they are accompanied by payment of compensation. 2. The compensation provided for in paragraph 1 of this Article will be calculated on the basis of the actual value of the investment immediately on the day preceding the day of adoption or publication of the decision on expropriation. Compensation must be paid without undue delay, be convertible and freely transferable from the territory of one Contracting Party to the territory of the other Contracting Party. 3. If the investments of investors of one Contracting Party are damaged in the territory of the other Contracting Party as a result of war, state of emergency, civil unrest or other similar circumstances, the Contracting Party in whose territory the investments were made, if it takes measures to compensate for the damage or other appropriate measures, will provide these investors with a regime no less favorable than that which which is provided to investors from any third country.
Article 5 Each of the Contracting Parties, in accordance with its legislation, guarantees to investors of the other Contracting Party, after fulfilling all tax obligations, the transfer of amounts in connection with investments, including: a) income as defined in paragraph 4 of Article 1 of this Agreement; b) amounts from the total or partial liquidation of investments; c) payments, made in accordance with the loan agreement in connection with investments; d) payments for technical assistance, maintenance and managerial experience; e) salaries and other remuneration received by citizens of the other Contracting Party for work and services performed in connection with investments made in the territory of the first Contracting Party, in the amount provided for by its legislation.
Article 6 The transfer of amounts in accordance with Articles 4 and 5 of this Agreement will be carried out at the official exchange rate of the Contracting Party in whose territory the investments were made effective on the date of transfer.
Article 7 This Agreement will apply to all investments that are made after its entry into force.
Article 8 1. Disputes between the Contracting Parties concerning the interpretation or application of this Agreement will, if possible, be resolved through diplomatic channels. 2. If the dispute cannot be resolved in this way within six months from the date of the initiation of the dispute by one of the Contracting Parties, it will, at the request of either Contracting Party, be submitted to the arbitral tribunal. 3. The Arbitral Tribunal consists of three arbitrators and is established as follows: within two months from the date of receipt by one of the Contracting Parties of a written notification from the other Contracting Party on the transfer of the dispute to arbitration, each of the Contracting Parties will appoint one arbitrator. These two arbitrators, within two months from the date of the appointment of the second arbitrator, will elect a third arbitrator, a citizen of a third State having diplomatic relations with both Contracting Parties, who, with the consent of the Contracting Parties, will be appointed Chairman of the arbitral tribunal. 4. If the arbitral tribunal is not established within five months from the date of receipt of the written notification of the referral of the dispute to the arbitral tribunal, either 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 national of one of the Contracting Parties or is unable to perform the specified function for another reason, the next most senior member of the International Court of Justice, who is not a national of either Contracting Party, may be invited to make the necessary appointments. 5. The Arbitration Court itself establishes the rules of procedure. The Court shall make decisions in accordance with the provisions of this Agreement and generally recognized principles and norms of international law. 6. The arbitral tribunal shall make decisions by a majority vote, these decisions are final and binding on both Contracting Parties, and at the request of either Contracting Party, the arbitral tribunal will explain the reasons for its decision. 7. Each of the Contracting Parties will bear the costs associated with the activities of the arbitrator appointed by it and its representation in the arbitration process. The costs related to the activities of the Chairman and other expenses will be borne by the Contracting Parties in equal shares.
Article 9 1. Any dispute between one Contracting Party and an investor of the other Contracting Party concerning the amount of compensation in case of expropriation may be submitted to an arbitration court. 2. Such an arbitration court is established for each specific case as follows: each of the Parties to the dispute will appoint one arbitrator, and these two arbitrators will elect a citizen of a third State that has diplomatic relations with both Contracting Parties as the presiding arbitrator. The first two arbitrators are appointed within two months, and the Chairman is elected within four months from the date of written notification of the dispute's referral to arbitration. If an arbitration court is not established within the specified time frame, either Party to the dispute may propose to the Chairman of the Arbitration Institute of the Stockholm Chamber of Commerce to make the necessary appointments. 3. The Arbitration court itself establishes the rules of procedure. At the same time, during the definition of the procedure, the rules of the Arbitration Institute of the Stockholm Chamber of Commerce may be adopted as a guide. 4. The arbitration court makes its decision by a majority vote. Such a decision will be final and binding on both Parties to the dispute. Each Contracting Party undertakes to execute the award of the arbitral tribunal in accordance with its national legislation. 5. The arbitral tribunal shall make a decision in accordance with the provisions of this Agreement, the legislation of the Contracting Party in whose territory the investments were made, including its conflict of laws rules, as well as generally recognized principles and norms of international law. 6. Each Party to the dispute will bear the costs associated with the activities of the arbitrator appointed by it. The costs associated with the Chairman's activities and other expenses of the Parties to the dispute will be borne in equal shares. 7. The Contracting Parties may, by mutual agreement, submit the subject of the dispute to any international regional arbitration.
Article 10 If one of the Contracting Parties, in accordance with its legislation or an international agreement to which both Contracting Parties are Parties, provides investments of investors of the other Contracting Party or activities related to such investments with a more favorable regime than the regime provided by this Agreement, the more favorable regime will apply.
Article 11 1. Representatives of both Contracting Parties will meet, as necessary, to: a) study the application of this Agreement; b) exchange information on legal issues of investments for the possibility of their implementation; c) resolve disputes arising in connection with investments; d) study other issues related to investments; e) consider proposals on making possible amendments and additions to this Agreement. 2. If any of the Contracting Parties proposes to hold consultations on any of the issues provided for in paragraph 1 of this Article, the other Contracting Party will immediately respond and consultations will be held alternately in Almaty and Cairo.
Article 12 1. The provisions of this Agreement may be supplemented or amended by mutual agreement of the Contracting Parties. 2. This Agreement shall enter into force upon the expiration of thirty days from the date of receipt by the Contracting Parties of the last written notification on their implementation of the relevant procedures provided for by their legislation, and will be valid for fifteen years. 3. This Agreement shall remain in force for a period of fifteen years, unless either Contracting Party notifies the other Contracting Party in writing of its intention to terminate it at least one year before the expiration of the period specified in paragraph 2 of this Article. 4. Upon expiration of the initial fifteen-year period, each of the Contracting Parties may terminate this Agreement at any time by notifying the other Contracting Party in writing of its desire to denounce it. Such notification shall enter into force twelve months after the date of its receipt by the other Contracting Party. 5. With respect to investments made prior to the date of termination of this Agreement, the provisions of articles 1-2 shall remain in force for a further fifteen years from the date of termination of this Agreement.
In witness whereof, the undersigned representatives, duly authorized by their respective Governments, have signed this Agreement.
Done in Cairo on February 14, 1993, in two originals, each in the Kazakh and Arabic languages, both texts being equally authentic.
(Experts: Sklyarova I.V., Tsai L.G.)
President
Republic of Kazakhstan
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