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

The Law of the Republic of Kazakhstan dated June 30, 2014 No. 220-V SAM

To ratify Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Estonia on the Promotion and Mutual Protection of Investments, signed in Tallinn on April 20, 2011.

President of the Republic of Kazakhstan N. NAZARBAYEV

Agreement between the Government of the Republic of Kazakhstan and The Government of the Republic of Estonia on the Promotion and Mutual Protection of Investments

(Entered into force on August 26, 2014 - Bulletin of International Treaties of the Republic of Kazakhstan 2014, No. 5, Article 44)

The Government of the Republic of Kazakhstan and the Government of the Republic of Estonia (hereinafter referred to as the Contracting Parties); desiring to promote the expansion of economic cooperation between their States in respect of investments made by investors of one Contracting Party in the territory of the other Contracting Party; recognizing that this Agreement, on the basis of which such investments are made, stimulates the inflow of private capital and the economic development of the Contracting States Parties; Agreeing that stable investment conditions will be most effective for using economic resources and improving living standards; agreed as follows:

Article 1 Definitions

For the purposes of this Agreement: 1. The term "investor" means in relation to any of the Contracting Parties: a) an individual who is a national of a State of one of the Contracting Parties and makes investments in the territory of the State of the other Contracting Party; b) a legal entity that is registered or established in accordance with the legislation of the State of this Contracting Party and is the owner, owner or shareholder of investments in the territory of the State of the other Contracting Party. 2. In relation to the Republic of Estonia, the term "investor" also means a legal entity of a member State of the European Union or the European Economic Area, which, in the context of freedom of establishment in accordance with articles 49 and 54 of the Treaty on the Functioning of the European Union, enjoys freedom of establishment as an agency or permanent mission in the Republic of Estonia. 3. The term "investment" means any type of assets invested by investors of one of the Contracting Parties in the territory of the State of the other Contracting Party in accordance with the legislation of the latter State and, in particular, includes: a) movable and immovable property, as well as any other rights such as mortgages, liens, usufructs and similar rights; b) shares, stakes and other forms of participation in companies; c) reinvested income, bonds, monetary claims or any other rights to legitimate activities having financial value related to investments; (d) Intellectual property rights, as defined in international treaties concluded within the framework of the World Intellectual Property Organization, to the extent that the States of the Contracting Parties are parties to them, including copyrights and related rights, industrial property rights, trademarks, patents, industrial designs and technological processes, rights to varieties plants, know-how, trade secrets, brand names and goodwill; e) the right to carry out economic and commercial activities on the basis of the laws of the States of the Contracting Parties. Any change in the form in which assets are invested or reinvested should not affect their nature as investments. 4. The term "income" means income derived from investments and includes, in particular, profits, dividends, interest, patent and other remuneration. 5. The term "territory" means: with respect to the Republic of Kazakhstan - the territory of the State within the land, sea and air borders, including land, waters, subsoil and airspace, in respect of which the Republic of Kazakhstan exercises sovereignty and extends jurisdiction in accordance with the norms of national legislation and international law; With respect to the Republic of Estonia, the territory and territorial sea of the Republic of Estonia, as well as the marine areas adjacent to the outer boundary of the territorial sea, including the seabed and subsoil of any of the aforementioned territories over which the Republic of Estonia exercises sovereign rights and jurisdiction in accordance with international law.

Article 2 Investment promotion

1. Each Contracting Party encourages and creates favorable conditions for investors of the other Contracting Party to make investments in its territory and allows such investments in accordance with the legislation of its State. 2. In order to promote mutual investment flows, each Contracting Party shall make efforts to inform the other Contracting Party, at the request of one of the Contracting Parties, about investment opportunities in its territory. 3. Each Contracting Party, as necessary, shall provide, in accordance with the legislation of its State, without delay, the permits necessary in connection with the activities of core personnel, including managerial and technical specialists, consultants and experts employed by investors of the other Contracting Party.,

Article 3 Investment protection

1. Each Contracting Party must provide on its territory full protection and security of investments and income of investors of the other Contracting Party, No Contracting Party will prevent by arbitrary or discriminatory measures the development, management, storage, use, expansion, sale and liquidation of investments, if such liquidation takes place. 2. Investments or income of investors of one Contracting Party in the territory of the other Contracting Party shall be carried out in a fair and equitable manner in accordance with international law.

Article 4 National and most-favored-nation treatment

1. None of the Contracting Parties shall grant in its territory less favorable treatment to investments and income from investments of investors of the other Contracting Party than that which it grants to investments and income from investments of its investors or investments and income from investments of investors of any third state, whichever is more favorable for interested investors. 2. None of the Contracting Parties shall grant in its territory to investors of the other Contracting Party, with respect to the acquisition, development, management, storage, use, expansion, sale or other disposal of its investments, a regime less favorable than that provided to its investors or investors of any third State, whichever is more favorable. for interested investors. 3. None of the Contracting Parties in its territory should establish mandatory measures for the investment of investors of the other Contracting Party in relation to the acquisition of materials, means of production, operation, transportation, sale of its products or similar orders with unjustified or discriminatory consequences. 4. The provisions of paragraphs 1 and 2 of this Article shall not be interpreted as obliging one of the Contracting Parties to extend to investors of the other Contracting Party advantages or privileges that may be granted by the first Contracting Party by virtue of: a) any existing or future customs union or economic or monetary union, free trade area or similar international agreements to which one of the Contracting Parties is or may become a party in the future; (b) Any international agreement concerning taxation in whole or in part.

Article 5 Expropriation

1. One Contracting Party shall not expropriate or nationalize, directly or indirectly, on its territory, investments of investors of the other Contracting Party or take any measures having such effect (hereinafter referred to as "expropriation"), except for those taken: a) in the public interest; b) on a non-discriminatory basis; c) in accordance with the rules of procedural law; d) with the payment of prompt, adequate and effective compensation. 2. Compensation should be equal to the fair market value of the expropriated investments immediately before expropriation or before the impending expropriation became known, depending on what happened earlier. It must be paid without delay, implemented effectively, and freely transferable. 3. An investor of one of the Contracting Parties who has suffered as a result of expropriation by the other Contracting Party has the right to have his case promptly examined, including an assessment of his investments and compensation in accordance with the provisions of this article, by a judicial authority or other competent and independent body of the latter Contracting Party.

Article 6 Compensation for damage or losses

1. In the event that investments made by investors of one of the Contracting Parties suffer losses or damage as a result of war or other armed conflicts, civil unrest, a state of emergency, revolutions, mass riots or similar events in the territory of the other Contracting Party, the receiving Contracting Party shall ensure that the regime does not apply to restitution, compensation, compensation or other forms of compensation. it is less beneficial than it provides to its own investors or to investors of any third country, depending on, which regime is more favorable for investors. 2. Without prejudice to the provisions of paragraph 1 of this Article, investors of a Contracting Party who, in any cases referred to in paragraph 1 of this Article, have suffered harm or damage in the territory of another Contracting Party as a result of: a) the requisition of their property or part of it by the authorities; (b) The destruction of their property or part of it by the authorities, which was not caused by the fighting and the necessity of the situation, is provided with prompt, adequate and effective compensation or compensation for harm or damage suffered during the seizure or as a result of the destruction of their property. The final payments must be made in a freely convertible currency and transferred freely without delay.

Article 7 Translations

1. In accordance with the laws of its States, each of the Contracting Parties in its territory ensures the free transfer of payments related to investments of the other Contracting Party. Such transfers include, in particular: (a) Share capital and additional funds to maintain or increase investments; (b) Profits; (c) contractual payments, including loan agreements; (d) Income from the sale or liquidation of all or any part of investments; (e) Compensation payments in accordance with articles 5 and 6 of this Agreement; (f) Payments resulting from investment disputes; (g) Earnings and other remuneration of personnel employed abroad in connection with investments. 2. Each Contracting Party shall ensure that transfers in accordance with paragraph 1 of this Article are made in freely convertible currency at the market exchange rate in effect on the date of transfer and should be carried out without delay. 3. The provisions of this Article shall not be interpreted as preventing the Contracting Parties from fulfilling their obligations in good faith as a member of the economic, customs and monetary union. 4. Regardless of the provisions of this Article, either Contracting Party may, in exceptional financial and economic circumstances, as well as in the event of serious difficulties with the balance of payments, impose currency restrictions in accordance with the laws of its State and the requirements of the Articles of Agreement of the International Monetary Fund, adopted on July 22, 1944 in Bretton Woods.

Article 8 Subrogation

1. If investments of investors of one Contracting Party made in the territory of the other Contracting Party are insured against non-commercial risks by the system established by the legislation of the latter, any subrogation of the insurer resulting from the terms of the insurance contract is recognized by the other Contracting Party. 2. The insurer is not entitled to exercise any other rights other than those to which the investor was entitled. The rights of claim for subrogation should not exceed the initial rights of the investor.

Article 9 Settlement of disputes between a Contracting Party and an investor of the other Contracting Party

1. An investor of one Contracting Party who has a dispute with another Contracting Party should try to resolve it through negotiations and consultations. 2. To start the negotiation process, the investor must send a written notification to the Contracting Party, the notification must specify: a) the name and address of the contesting investor; b) the provisions of this Agreement that were violated in the investor's opinion; c) the factual and legal grounds for the claim, and d) the requested funds and the amount of the claimed damage. 3. If the dispute cannot be resolved within six months from the date of receipt of the written notification, the dispute may be resolved at the request of the investor: a) by the competent court of the Contracting Party in whose territory the investment is made, or b) by the International Center for Settlement of Investment Disputes (ICSID), established in accordance with the Convention on the Settlement of Investment Disputes between by States and citizens of other States, opened for signature in Washington on March 18, 1965. In the event of proceedings, each Contracting Party hereby definitively agrees to refer any such dispute to the ICSID, which implies waiving the requirement that internal administrative and judicial remedies must be exhausted, or (c) arbitration consisting of three arbitrators in accordance with the Arbitration Rules of the United Nations Commission on International Trade Law. In the event of arbitration, each Contracting Party hereby irrevocably agrees in advance, even in the absence of a separate arbitration agreement between the Contracting Party and the investor, to submit any such dispute to the said court. 4. The court's decision is final and binding. Each Contracting Party must ensure the recognition and enforcement of the award in accordance with the laws of its States, 5. A Contracting Party that is a party to the dispute, at any stage of the conciliation or arbitration proceedings or the enforcement of an arbitral award, may not object that an investor of the other Contracting Party who is a party to the dispute has received compensation by virtue of a guarantee in respect of all or part of his losses. 6. The investor who will submit the dispute to the national court in accordance with subparagraph (a) paragraph 3 of this article or one of the arbitration courts referred to in subparagraphs (b) and (c) of paragraph 3 of this article may not submit it to any other court or arbitration. The investor's choice of a court or an arbitration court is final and binding.

Article 10 Settlement of 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 and consultations. 2. If, in accordance with paragraph 1 of this article, the dispute cannot be settled within six months, it must, at the request of one of the Contracting Parties, be submitted for consideration by an arbitration court consisting of three members. 3. Each of the Contracting Parties appoints one member of the arbitral tribunal and these two members of the arbitral tribunal agree on a citizen of a third country as chairman. Such members of the arbitral tribunal shall be appointed within two months from the date on which one Contracting Party notifies the other Contracting Party of its intention to submit the dispute to the arbitral tribunal, whose chairman shall be appointed within two subsequent months. 4. If the time limits specified in paragraph 3 of this Article are not met, one of the Contracting Parties may, without any other appropriate arrangements, apply to the President of the International Court of Justice for the necessary appointments. If the President of the International Court of Justice is a national of one of the Contracting Parties or for other reasons is unable to perform the specified function, the Vice-President or, in case of his inability, another next-in-seniority member of the International Court of Justice, in accordance with the rules of the International Court of Justice, may be invited under the same conditions to make the necessary appointments. 5. The arbitral tribunal shall establish its own rules of procedure, unless the Contracting Parties decide otherwise. 6. The arbitral tribunal shall render its decision by virtue of this Agreement and in accordance with the norms of international law. He makes his decision by a majority vote, and the decision must be final and binding on the Contracting Parties. 7. Each Contracting Party shall bear the costs of its member of the arbitral tribunal and his legal representation in the arbitration proceedings. The expenses of the Chairman and the remaining expenses shall be borne equally by both Contracting Parties, the Court may, however, determine in its decision a different allocation of costs.

Article 11 Application of the Agreement

This Agreement applies to investments made before or after the entry into force of this Agreement, but does not apply to any investment dispute that may arise before its entry into force.

Article 12 Entry into force, duration and termination of the Agreement

1. This Agreement shall enter into force on the date of receipt, through diplomatic channels, of the last written notification that the Contracting Parties have completed the internal procedures necessary for its entry into force. 2. This Agreement is concluded for a period of ten years and will be extended for subsequent ten-year periods until either Contracting Party notifies the other Contracting Party in writing through diplomatic channels of its intention not to extend this Agreement no later than one year before the expiration of the initial or any subsequent periods. 3. With respect to investments made prior to the date of termination of this Agreement, the provisions of this Agreement will continue to apply for ten years after termination. 4. This Agreement may be terminated by written notification through diplomatic channels six months in advance* if the obligations of the Republic of Estonia under this agreement exceed those arising from its membership in the European Union, in conditions where the level of investment protection remains equal to the level provided for in this Agreement. 5. In witness whereof, the undersigned, being duly authorized thereto by their respective Governments, have signed this Agreement.

Done in Tallinn, on April 20, 2011, in two originals, each in the Kazakh, Estonian, Russian and English languages, all texts being equally authentic. In case of disagreement in the interpretation of the provisions of this Agreement, the Contracting Parties will refer to the English text.

For the Government For the Government of the Republic of Kazakhstan Of the Republic of Estonia

RCPI's note! The following is the text of the Agreement in Estonian and English.

President

Republic of Kazakhstan

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