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

Law of the Republic of Kazakhstan dated May 15, 2001 No. 202

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Bulgaria on Mutual Promotion and Protection of Investments, signed in Sofia on September 15, 1999.

President of the Republic of Kazakhstan

Agreement* between the Government of the Republic of Kazakhstan and the Government of the Republic of Bulgaria on Mutual Promotion and Protection of Investments

*(Entered into force on August 20, 2001 - Bulletin of International Treaties of the Republic of Kazakhstan, 2002, No. 3, art. 29)

 RCPI Note: See the Protocol on Amendments to the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Bulgaria on Mutual Promotion and Protection of Investments

The Government of the Republic of Kazakhstan and the Government of the Republic of Bulgaria, hereinafter referred to as the "Contracting Parties", wishing to strengthen mutually beneficial economic cooperation, striving to encourage and create favorable conditions for investments by investors of one Contracting Party in the territory of the other Contracting Party on the basis of equality and mutual benefit, recognizing that the promotion and mutual protection of investments in accordance with this Agreement promotes a business initiative in this area, we have agreed on the following:

 Article 1 Definitions

For the purposes of this Agreement: 1. The term "investment" means any type of investment made by an investor of one Contracting Party in the territory of the other Contracting Party, provided that these investments were made in accordance with the legislation of the latter and covers, in particular, but not exclusively: a) movable and immovable property and other related property rights and tangible collateral in in the form of mortgages, collateral, and others; b) shares, deposits (units), bonds and other forms of participation in companies or other legal entities registered in accordance with the laws of each of the Contracting Parties; c) loans, monetary claims and other rights of economic value; d) intellectual property rights, including copyright and similar he owns rights, patents, licenses, industrial designs, trademarks, service marks, appellations of origin, technological processes, know-how and good will; e) the rights to carry out economic activities provided in accordance with the legislation of each of the Contracting Parties, including the rights to explore, explore, extract and exploit natural resources. A further change in the form of the investment in which they were made does not affect their qualification as an investment, provided that such a change does not contradict the legislation of the Contracting Party in whose territory the investment was made. 2. The term "income" means funds received as a result of investments, such as profits, dividends, interest, remuneration for the management of an enterprise and other funds received in accordance with the legislation of each of the Contracting Parties. 3. The term "investor" means in relation to each of the Contracting Parties: - an individual who is a citizen of one of the Contracting Parties, in accordance with its current legislation; - any company, organization or association, with or without the right of a legal entity, established in accordance with the laws of the States of each of the Contracting Parties and located on its territory. 4. The term "territory" means the territory under the sovereignty of the Republic of Kazakhstan, on the one hand, and the Republic of Bulgaria, on the other hand, including the territorial sea, as well as the continental shelf and the exclusive economic zone over which the State concerned exercises sovereign rights and jurisdiction in accordance with international law.

Article 2 Investment promotion and protection

1. Each of the Contracting Parties encourages and protects investments of investors of the other Contracting Party in its territory and allows such investments in accordance with its legislation. 2. Each of the Contracting Parties guarantees, in accordance with its legislation, full protection of investments of investors of the other Contracting Party. 3. Income from investments, and in the case of re-investment (reinvestment) - income from re-investment (reinvestment), enjoy the same protection as the initial investment. 4. Each of the Contracting Parties will favorably consider, in accordance with its legislation, issues related to the entry, stay, work and movement on its territory of citizens of the other Contracting Party engaged in investment activities.

Article 3 Legal regime of investments

1. Each of the Contracting Parties will provide investments made in its territory by investors of the other Contracting Party and investment-related activities with fair and equitable treatment, excluding discriminatory measures that could interfere with the management and management of investments. 2. The regime specified in paragraph 1 of this Article is no less favorable than that provided to investments and investment-related activities of its own investors or investors of any third State. 3. Each of the Contracting Parties reserves the right to determine the industries and areas of activity in which restrictions or exceptions are allowed regarding the activities of foreign investors. Any new exception, however, will apply only to investments made after the said exception comes into force. 4. The most-favored-nation treatment provided by the provisions of paragraph 2 of this Article does not apply to advantages that a Contracting Party provides or will provide in the future in connection with: a) participation in an existing or future customs union, free trade area, economic communities or other similar institutions; b) agreements on the elimination of double taxation or other agreements on tax issues. questions. 5. Reinvestment of income enjoys the same treatment as the initial investment.

Article 4 Compensation for damage

A Contracting Party in whose territory damage has been caused to the investments of another Contracting Party as a result of war or other armed conflict, the imposition of a state of emergency or other similar circumstances, shall grant such investors treatment no less favorable than that which it grants to investors of any third State when compensating for the damage they have suffered as a result of the above circumstances.

Article 5 Expropriation

1. Investments of investors of one of the Contracting Parties made in the territory of the other Contracting Party may not be expropriated or nationalized, except in cases where such measures are taken for particularly important needs of the State, in accordance with the procedure established by law, are not discriminatory and are accompanied by the payment of immediate and adequate compensation. The same conditions will also apply when investments are transformed into public ownership, when they are transferred under public control, as well as for each restriction or withdrawal of the property rights of investors by each of the Contracting Parties through sovereign measures, which in their consequences amount to nationalization. 2. The compensation must correspond to the market value of the nationalized investments immediately prior to the entry into force of the nationalization act, be paid without delay and include annual interest equal to the 12-month interest rate (LIBOR) for the corresponding freely convertible currency in which the investments were made before the payment, or with the consent of the investor in any other currency. Any reduction in value resulting from the public announcement of the withdrawal will not be accepted due to the determination of the amount of compensation due. The payment of this compensation is subject to free transfer to the investor's country.

 Article 6 Transfer of payments related to investments

1. Each of the Contracting Parties shall allow investors of the other Contracting Party, after fulfilling all tax obligations, to freely transfer payments in connection with investments, and in particular: a) the amounts of the initial investment and additional amounts to maintain or increase investments; b) income from investments; c) amounts received by the investor as a result of complete or partial liquidation of investments; (d) The amounts necessary to pay expenses arising from the operation of investments, such as loans, patent fees, and other expenses; (e) Compensation in accordance with Articles 4 and 5 of this Agreement; (f) 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 and in the manner prescribed by its legislation; g) payments arising from the settlement of an investment dispute. 2. The transfer of payments specified in paragraph 1 of this Article shall be carried out without delay, subject to payment of taxes and other mandatory payments, in accordance with the national legislation of the States in freely convertible currency at the exchange rate of the Contracting Party in whose territory the investments were made effective on the day of transfer. 3. In accordance with the laws of the States of each of the Contracting Parties, all transfers that are the subject of this Article will be treated no less favourably than transfers made by investors of any third State.

 Article 7 Subrogation

1. If a Contracting Party makes a payment to its investor on the basis of a guarantee or insurance contract concluded in connection with the investment, the other Contracting Party recognizes the transfer to the first Contracting Party of the rights and obligations belonging to the investor. The Contracting Party to which the investor's rights have been transferred has the same rights as the investor, subject to the investor's obligations related to the investments insured in this way. 2. In the case of subrogation provided for in paragraph 1 of this Article, the investor may not make claims unless he is authorized by the Contracting Party.

 Article 8 Disputes between the Contracting Parties

1. Disputes between the Contracting Parties concerning the interpretation or application of this Agreement shall be resolved, if possible, through negotiations between the Contracting Parties. 2. If a dispute between the Contracting Parties cannot be resolved in this way within six months of the start of negotiations, it may be referred to an arbitration court at the request of either Contracting Party. 3. Such an arbitration court is established for each specific case as follows: within three months from the date of receipt of the request for arbitration, each of the Contracting Parties appoints one member of the court. These two members shall elect a citizen of a third State, who, after approval by the Contracting Parties, shall be appointed President of the Court. The Chairman of the arbitration court must be appointed within two months of the appointment of the other two members of the court. 4. If the necessary appointments have not been made within the time limits specified in paragraph 3 of this Article, then, in the absence of any other agreement, each of the Contracting Parties may request the President of the International Court of Justice to make such appointments. If the President is a national of one of the Contracting Parties or is unable to perform this function for any other reason, the Vice-President of the International Court of Justice may be requested to make the necessary appointments. If the Vice-President is a national of one of the Contracting Parties or is also unable to perform the specified function, the request to make the necessary appointments may be addressed to the next most senior member of the International Court of Justice, who is not a national of either Contracting Party. 5. The Chairman and members of the arbitration court must be citizens of the States with which both Contracting Parties maintain diplomatic relations. 6. The arbitral tribunal shall make its decision based on the provisions of this Agreement, as well as generally recognized principles and norms of international law. He makes his decision by a majority vote. Such a decision is final and binding on both Contracting Parties. The court determines the order of its work independently. 7. Each of the Contracting Parties shall bear the costs associated with the activities of its appointed member of the court and its representation in the arbitration process. The Contracting Parties shall bear the expenses related to the activities of the Chairman of the Court and other expenses equally.

Article 9 Disputes between a Contracting Party and a State investor Of the Second Contracting Party

1. Disputes between an investor of one of the Contracting Parties and the other Contracting Party concerning its obligations under this Agreement and arising in connection with the implementation of investments by an investor of the first Contracting Party shall be resolved, if possible, through negotiations. 2. If the dispute is not resolved in this way within six months of its occurrence, it may be referred to the competent court or arbitration of the Contracting Party in whose territory the investments were made. 3. Disputes based on Articles 5 and 6 of this Agreement may be submitted to the arbitration court "ad-hoc" in accordance with the Arbitration Rules of the United Nations Commission on International Commercial Law (UNCITRAL) or in case of accession of both Contracting Parties to the Washington Convention of March 18, 1965. "On the settlement of disputes concerning investments between States and citizens of other States", to the International Investment Dispute Resolution Center, provided that the investor has not exercised the right to file a claim in accordance with paragraph 2 of this Article. For this purpose, any Contracting Party must declare its consent to the application of the above-mentioned international arbitration procedure. 4. The arbitral tribunal shall make its decision on the basis of the legislation of the Contracting Party in whose territory the investments were made, the provisions of this Agreement, as well as generally recognized principles and norms of international law. 5. The decision of the arbitral tribunal is final and binding on both Parties to the dispute and is carried out in accordance with the national legislation of the Contracting Party in whose territory the investments were made. 6. Each of the Contracting Parties shall bear the costs associated with the activities of its appointed member of the court and its representation in the arbitration process, and the costs associated with the activities of the Chairman of the court and other expenses of the Contracting Parties shall be borne in equal shares. 7. A Contracting Party that is a party to the dispute may not, at any stage of the arbitration procedure or the execution of a court decision, refer to the fact that the investor has received compensation as a result of the insurance contract covering all or part of the damage caused.

 Article 10 Consultations

Each of the Contracting Parties may invite the other Contracting Party to hold consultations on issues related to the interpretation or application of this Agreement. The other Contracting Party will take the necessary measures to conduct these consultations.

 Article 11 Application

The provisions of this Agreement, from the moment of its entry into force, shall also apply to investments made since December 16, 1991.

 Article 12 Final provisions

1. This Agreement is subject to ratification and will enter into force thirty days after the date of the exchange of instruments of ratification and will be valid for fifteen years. 2. If none of the Contracting Parties notifies the other Contracting Party in writing at least twelve months before the expiration of the initial period of its intention to terminate this Agreement, its validity is automatically extended for another five-year period. 3. With respect to investments made prior to the date of termination of this Agreement, the provisions of Articles 1-11 of this Agreement will remain in force for a further ten years from the date of termination. 4. This Agreement may be amended by written agreement between the Contracting Parties. Any amendment should enter into force if each of the Contracting Parties has notified the other Contracting Party that it has regulated all its own formalities preventing the entry into force of such an amendment.

Done in Sofia on September 15, 1999, in two original copies in the Kazakh, Bulgarian and Russian languages, all texts being equally authentic. In case of disputes concerning the interpretation of this Agreement, the Contracting Parties will use the text of the Agreement in Russian.

For the Government For the Government of the Republic of Kazakhstan of the Republic of Bulgaria

President

Republic of Kazakhstan

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