On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the French Republic on the functioning of the French Development Agency Group in the Republic of Kazakhstan

The Law of the Republic of Kazakhstan dated January 8, 2025 No. 151-VIII SAM.

      To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the French Republic on the functioning of the French Development Agency group in the Republic of Kazakhstan, signed in Astana on November 1, 2023.

     President

Republic of Kazakhstan

K. TOKAEV

Agreement between the Government of the Republic of Kazakhstan and the Government of the French Republic on the functioning of the French Development Agency Group in the Republic of Kazakhstan  

     The Government of the Republic of Kazakhstan and the Government of the French Republic, hereinafter referred to as the Parties,

     Considering that the Republic of Kazakhstan and the French Republic are motivated by the desire to strengthen their bonds of friendship and cooperation;

     Welcoming the common desire to intensify and expand economic and financial cooperation between the two States;

     Recognizing that the French Development Agency ("FAR"), its subsidiary "Societe de Promotion et de Participation pour la Cooperation Economique" ("PROPARCO"), specializing in financing private sector development, and its subsidiary "Expertise France", specializing in the promotion of French technical assistance and international expertise and experience abroad, forming together the FAR group (hereinafter referred to as the "FAR group"), are interested in developing their activities in the territory of the Republic of Kazakhstan.; that for the rest of this Agreement, the term "group of headlamps" will refer to the three structures that make up the group of headlamps (HEADLAMPS, "PROPARCO" and "Expertise France"), individually or together;

     Bearing in mind that the FAR Group is central to the provision of official assistance to developing countries and operates in more than 80 countries through its network of about 60 local offices;

     Bearing in mind that FAR, a French government agency:

     It fights poverty, supports economic growth and participates in the preservation of global public goods in developing countries, countries with economies in transition and overseas territories of France.,

     Overseen by the Ministry of Foreign Affairs and International Development, the Ministry of Economy and Finance, the Ministry of Overseas Territories and the French Ministry of the Interior,

     Implements France's development assistance policy and operates under the supervision of these ministries and in close cooperation with them.,

     carries out its activities within the framework of development projects and programs in accordance with its status,

     It offers consulting, training and technical assistance services.;

     Bearing in mind that "PROPARCO", established in 1977 in the form of a company in accordance with French law:

     It is a financial development institution, the controlling stake of which belongs to FAR,

     It has the primary goal of encouraging private investment in transition and developing countries to support growth, sustainable development, and the achievement of the Sustainable Development Goals (SDGs),

     finances economically viable, socially equitable, environmentally sustainable, and financially viable operations,

     invests in a geographical area stretching from large countries with economies in transition to the poorest countries, including in Africa, with high demands for social and environmental responsibility.,

     It offers a comprehensive range of financial instruments to meet the specific needs of private investors in developing countries.;

     Bearing in mind that Expertise France is a structure fully integrated into the FAR group in accordance with the provisions of the Law of the French Republic of August 4, 2021, No. 2021-1031 on the development of programs for inclusive development and combating global inequality, which plays the role of the French state's technical cooperation operator:

     mobilizes French and international expertise and experience to support the process of defining and implementing public policy measures that contribute to the balanced development of partner countries in accordance with the Sustainable Development Goals of the 2030 Agenda and the priorities of the French Government's foreign policy,

     carries out its activities at the main stages of the project cycle (definition, formulation, implementation and follow-up) and offers a wide range of activities (providing expertise in the short and long term, organizing workshops, seminars, training events, study tours, etc.),

     Provides expertise, experience and support to national authorities in defining and implementing public policy measures within the framework of international projects funded by French or European government agencies, development banks, recipient countries or private foundations.;

     Bearing in mind that it is in the common interests of the Parties to conclude this Agreement in order to enable the FAR Group to provide its financial and technical assistance to the Republic of Kazakhstan in accordance with the objectives of the economic and social development of the Republic of Kazakhstan;

     On the basis of respect for the principles of independence, sovereign equality and non-interference in internal affairs, the Government of the Republic of Kazakhstan and the Government of the French Republic have agreed on the following:

Article 1. Purpose of the Agreement

     The FAR Group is authorized to provide financial and technical assistance in the Republic of Kazakhstan.

     The purpose of this Agreement is to define the rules applicable to the operation of the FAR Group in the Republic of Kazakhstan, which, in particular, defines the legal, tax and financial conditions applicable to the status and activities of the FAR group in the Republic of Kazakhstan.

Article 2. Legal status of the FAR group

     2.1. The FAR Group has the legal capacity necessary to carry out its activities in the Republic of Kazakhstan, and in this capacity can acquire and dispose of movable and immovable property, with the exception of lands prohibited from being privately owned by foreign legal entities in accordance with the legislation of the Republic of Kazakhstan, as well as apply to the court.

     2.2. The Group of headlamps has the right:

      (a) Carry out the activities clearly listed in article 3 of this Agreement;

     (b) Negotiate and conclude any type of contract, with the exception of international agreements;

     c) accept any kind of guarantees or collateral;

     d) hire staff from among the citizens of the Republic of Kazakhstan, the French Republic or other States.

Article 3. Permitted activities of the FAR group in the Republic of Kazakhstan

     3.1. The FAR Group has the right to carry out the activities described in this Agreement.:

     a) provide funds in euros, US dollars or any other currency, as well as any form of financial or technical assistance in accordance with its status and this Agreement;

     b) provide consulting, technical assistance and training services to public or private entities.

     3.2. Each of the above-mentioned types of activity is the subject of a separate agreement defining the obligations and obligations of the Parties concerned with the type of activity or operation in question. Each Party undertakes to make every effort to facilitate the implementation of the existing procedures necessary for the entry into force of such an agreement.

     3.3. The activities of the FAR group do not require any permission or license.

     3.4. The Government of the Republic of Kazakhstan will make every effort to facilitate the approval by the competent authorities of the activities of the FAR group (depending on the circumstances or in accordance with the regulations of the Republic of Kazakhstan) during the study and at the assessment stage.

Article 4. Absence of banking regulation

     4.1. The activities of the FAR group are cross-border operations that are carried out from its headquarters located in France.

     4.2. FAR Group and its representative office(s) (as defined in Article 7 below) do not have the status of a bank or any other financial institution in the Republic of Kazakhstan. Therefore, they are not subject to the provisions of regulatory legal acts in the field of banking regulation applicable to banks and financial institutions in the territory of the Republic of Kazakhstan.

Article 5. Convertibility and transfers of funds

      5.1. The FAR Group, any recipient of the FAR group's financing, as well as any intermediary bank are authorized to convert into foreign currency at the exchange rate agreed between the organization carrying out the exchange and the owner of the funds, or published by the National Bank of the Republic of Kazakhstan on the date of conversion, and freely transfer in accordance with the procedures established by the legislation of the Republic of Kazakhstan, outside on the territory of the Republic of Kazakhstan, without prior formalities or restrictions, any amounts due to the FAR group, This includes amounts for reimbursement of financing, both the principal amount of the debt, as well as interest, penalties, related fees and all other amounts due in connection with the implementation or completion of the FAR Group's activities in the Republic of Kazakhstan.  

     5.2. A group of headlamps may also:

     (i) have bank accounts in the Republic of Kazakhstan in any currency,

(ii) convert into a foreign currency at the exchange rate agreed between the exchange organization and the owner of the funds, or published by the National Bank of the Republic of Kazakhstan on the date of conversion, and

     (iii) freely transfer, in accordance with the procedures established by the legislation of the Republic of Kazakhstan, outside the territory of the Republic of Kazakhstan, without prior formalities or restrictions, any amounts resulting from the sale of shares or movable and immovable assets, any dividends and other income distributions, any profits, any capital gains, any operating product and, in general, any income, commissions or funds of any kind, including, but not limited to, compensation for losses and interest arising from a court or arbitration award, if such amounts occur primarily or in connection with any investments or operations of the FAR Group in the Republic of Kazakhstan or with their implementation.

     5.3. FAR Group has the right, as appropriate, to make direct payments to suppliers or counterparties of the relevant borrower or recipient who are not established in the territory of the Republic of Kazakhstan, where they are used to purchase goods and services originating outside the Republic of Kazakhstan, and, if necessary, to carry out loans or any other financial, currency or credit transactions., receive a direct refund of this financing using a currency stored outside the Republic of Kazakhstan.

     5.4. Banks accredited and operating in the Republic of Kazakhstan are entitled to:

     (i) convert Kazakhstani tenge (KZT) received from debtors of the FAR Group into any foreign currency at the exchange rate agreed between the exchange organization and the owner of the funds, or published by the National Bank of the Republic of Kazakhstan on the date of conversion, and

     (ii) transfer this foreign currency to the bank accounts of the FAR Group abroad in accordance with the procedures established by the legislation of the Republic of Kazakhstan.

Article 6. Tax status

      Subjects of the FAR Group are exempt from paying corporate income tax (including withholding tax) within the framework of their activities in the Republic of Kazakhstan on income received as a result of carrying out activities specified in Article 3 of this Agreement. For other taxes, the current tax legislation of the Republic of Kazakhstan applies.

Article 7. Local representative office of the FAR Group – status of employees

     7.1. Representative office of the FAR Group in the Republic of Kazakhstan

     a) The FAR Group has the right to open and maintain a representative office (representative offices) in the Republic of Kazakhstan (hereinafter referred to as the "representative office (representative offices)") in order to carry out the activities described in this Agreement. The founder of the representative office is FAR, acting on behalf of the FAR group.

     b) The Government of the Republic of Kazakhstan shall facilitate the opening and functioning of a representative office(s) in accordance with this Agreement.

     c) The representative office(s) of the FAR Group in the Republic of Kazakhstan is responsible for identifying promising projects that the FAR group can implement in the Republic of Kazakhstan, preparing and negotiating documents related to these projects, as well as monitoring the progress of their implementation.

     Only the FAR Group headquarters in France will be responsible and responsible for: (i) project review procedures; (ii) project approval; (iii) financing decisions; (iv) disbursement of funds; (v) Monitoring the progress of debt repayment.

     The representative office (representative offices) of the FAR Group carries out its activities in accordance with this Agreement.

     d) The Government of the Republic of Kazakhstan undertakes not to nationalize, expropriate or take any measures that may directly or indirectly lead to the deprivation of ownership of any property, assets or funds of the FAR group or representative office. If, for reasons of justified common interest, any such measure or action is taken, the FAR group will be provided with prompt and adequate compensation. Financial compensation will be agreed on the basis of an independently determined market value and accepted by the Parties.

     7.2. Foreign personnel/ Kazakhstani personnel/ members of the temporary missions of the FAR group:

     a) The FAR Group determines the number and qualifications of its staff members who do not have citizenship of the Republic of Kazakhstan and temporary residence visas (hereinafter referred to as "foreign employees"), which it considers necessary for the effective functioning of its representative office.

     The FAR Group covers all expenses related to salaries, reimbursements and transportation of foreign employees. These employees use the French social security and pension systems and therefore are not subject to provisions of a similar nature that may apply in the Republic of Kazakhstan. In particular, the FAR group does not pay the contributions normally paid by the employer in accordance with the employment regimes in the Republic of Kazakhstan.

     Government of the Republic of Kazakhstan:

     I) allows foreign employees and their family members to enter, leave and stay in the Republic of Kazakhstan for the period of their business trip, provides them with convenient conditions for passing the registration procedure for foreigners;

     II) facilitates the issuance of a work permit to the spouse of a foreign employee, valid for the entire duration of the business trip of the relevant foreign employee, allowing him or her to work in the Republic of Kazakhstan;

     III) issues documents confirming their status to foreign employees.

     b) As part of its activities in the Republic of Kazakhstan, the FAR Group has the right to hire employees who are citizens or residents of the Republic of Kazakhstan, in accordance with the legislation and regulations of the Republic of Kazakhstan in the field of labor and social security.

     c) In order to carry out its activities in the Republic of Kazakhstan, the FAR Group has the right to send temporary missions to the Republic of Kazakhstan or instruct consultants to collect information necessary for the preparation and (or) implementation of projects.

     The Government of the Republic of Kazakhstan shall take the necessary measures to ensure that members of temporary missions receive, within a shorter period of time, the permits necessary for their entry into, stay in and exit from the territory of the Republic of Kazakhstan.

     d) The Government of the Republic of Kazakhstan grants such privileges to foreign employees and their family members, members of temporary missions, as well as to the mission(s), which are no less favorable than those granted to foreign employees and their families, members of temporary missions, as well as to the missions of any third country or any international organization performing a similar mission in The Republic of Kazakhstan, with the exception of employees of diplomatic missions.

     e) The Government of the Republic of Kazakhstan takes the necessary measures to ensure the safety of foreign employees and their family members, as well as members of temporary missions stationed in the Republic of Kazakhstan.

Article 8. Implementation of the Agreement

     8.1. In order to facilitate the implementation of the procedures of the FAR group for the implementation of its activities, the Republic of Kazakhstan sends all necessary information to its structures in order to ensure the prompt implementation of this Agreement in full and to take any necessary internal measures for this.

     8.2. From the date of entry into force of this Agreement, the FAR Group has the right to submit this Agreement, whether by reference or copy, to any authority, official and, more generally, to any public administration body of the Republic of Kazakhstan. In order for the beneficiaries of the FAR financing or its counterparties to apply for the exercise of the rights set forth in this Agreement, the FAR Group has the right to send a copy of this Agreement to such recipients or counterparties so that they can submit it to the relevant authorities.

Article 9. Entry into force. The validity period. Termination and modification

     9.1. Entry into force

     This Agreement shall enter into force 30 days after the date of receipt, through diplomatic channels, of the last written notification by the Parties of the completion of the internal procedures necessary for its entry into force.

     9.2. Amendments to this Agreement

      By mutual agreement of the Parties, amendments and additions may be made to this Agreement, which are its integral parts, which are formalized in separate protocols and enter into force in accordance with the procedure provided for in paragraph 9.1 of this Article.

     9.3. Dispute Resolution

     Disputes arising in connection with the interpretation and/or application of the provisions of this Agreement shall be resolved through bilateral consultations or negotiations between the Parties.

     9.4. Validity period and termination

     This Agreement is concluded for an indefinite period. It may be terminated at any time by one of the Parties by sending a written notification through diplomatic channels six (6) months in advance. The termination of this Agreement does not affect the existing treaties or conventions concluded during the period of validity of this Agreement.

     Done in Astana on November 1, 2023, in 2 (two) original copies each in the Kazakh, French and Russian languages, all texts being equally authentic.

For the Government

Republic of Kazakhstan

For the Government

The French Republic

Alibek KUANTYROV

Olivier BESHT

Minister of National Economy

Minister-Delegate to the Minister of Europe and Foreign Affairs on Foreign Trade and Economic Attractiveness

President    

Republic of Kazakhstan     

© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan  

 Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases