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

The Law of the Republic of Kazakhstan dated October 17, 2001 No. 249.

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Tajikistan on the Promotion and Mutual Protection of Investments, signed in Dushanbe on December 16, 1999.

President of the Republic of Kazakhstan

Agreement* between the Government of the Republic of Kazakhstan and The Government of the Republic of Tajikistan on the promotion and Mutual Protection of Investments

 *(Entered into force on November 20, 2001 - Bulletin of International Treaties of the Republic of Kazakhstan, 2002, No. 3, art. 34) The Government of the Republic of Kazakhstan and the Government of the Republic of Tajikistan, hereinafter referred to as the "Contracting Parties", desiring to strengthen and expand economic cooperation between the two Contracting Parties, desiring to create favorable conditions for the implementation of investments by investors of one Contracting Party in the territory of the other Contracting Party, recognizing that the promotion and mutual protection of investments in accordance with the Agreement will contribute to the economic development of the Contracting Parties The Parties have agreed on the following:  

Article 1. Definitions For the purposes of this Agreement: 1. The term "investment" means all types of property values and rights to them, as well as intellectual property rights, invested by investors in business objects for the purpose of generating profit (income) and covers, in particular, but exclusively: - movable and immovable property and any other related property rights, including mortgages, the right to hold a mortgage or other collateral and funds in accounts with banks andArticle 1. Definitions For the purposes of this Agreement: 1. The term "investment" means all types of property values and rights to them, as well as intellectual property rights, invested by investors in business objects for the purpose of generating profit (income) and covers, in articular, but exclusively: - movable and immovable property and any other related property rights, including mortgages, the right to hold a mortgage or other collateral and funds in accounts with banks and other financial institutions; - shares, deposits (units), bonds, and any other forms of participation in enterprises, joint-stock companies, business partnerships, associations, and other legally recognized legal entities registered in accordance with the laws of each of the Contracting Parties; - loans, credits, targeted bank and financial deposits, and other monetary claims related to making investments; - intellectual and industrial property righ- intellectual and industrial property rights, including copyrighted objects, patents, trademarks, service marks, trade names, industrial designs, business secrets and "know-how"; - reinvestment of income and payments of principal and interest on loan agreements. 2. The term "investor" means: a) an individual who is a citizen of one of the States of the Contracting Parties in accordance with their applicable legislation; b) any legal entity established in accordance with the current legislation of the State of one of the Contracting Parties; c) a legal entity not established in accordance with the legislation of the State of one of the Contracting Parties, but directly or indirectly controlled by individuals or legal entities of the State of the same Contracting Party. 3. The term "income" means: Funds received as a result of investments or related to them, in cash or in kind, including profits, dividends, remuneration for enterprise management, maintenance and any other funds obtained legally. 4. The term "territory" means: the State territory of the States of the Contracting Parties, including free economic zones, the continental shelf and the subsoil over which the States of the Contracting Parties exercise, in accordance with international law, their sovereign rights and The term "territory" means: the State territory of he States of the Contracting Parties, including free economic zones, the continental shelf and the subsoil over which the States of the Contracting Parties exercise, in accordance with international law, their sovereign rights and jurisdiction. 5. Changing the form of an investment permitted in accordance with the laws and other regulations of the State of the Contracting Party in whose territory the investment was made does not change its nature as an investment.

Article 2. Promotion and protection of investments 1. Each of the Contracting Parties will promote investments by investors of the other Contracting Party and will allow such investments in accordance with the legislation of its State. 2. Each of the Contracting Parties will ensure fair and equitable treatment for investments by investors of the other Contracting Party and will not infringe through arbitrary or discriminatory measures on the management, operation, use or disposal of these investments.  

Article 3. Legal regime of investments 1. The Contracting Parties shall mutually ensure in their territories a regime in respect of investments no less favorable than that granted to investments of their own investors or investments of investors from third countries. 2. This regime does not apply to: a) the advantages that one of the Contracting Parties provides to investors of individual countries in connection with their joint participation in a customs or economic free trade union; b) advantages that one of the Contracting Parties provides to investors of individual countries on the basis of an agreement on the avoidance of double taxation or other agreements on tax issues.  

Article 4. Guarantees for investments Investments of investors of one of the Contracting Parties may not be requisitioned, nationalized, expropriated or subjected to other measures having such consequences as requisition, nationalization, expropriation (hereinafter referred to as expropriation), except in cases where expropriation is carried out in the public interest and is carticle 4. Guarantees for investments Investments of investors of one of the Contracting Parties may not be requisitioned, nationalized, expropriated or subjected to other measures having such consequences as requisition, nationalization, expropriation (hereinafter referred to as expropriation), except in cases where expropriation is carried out in the public interest and is carried out: - in accordance with the procedure established by the legislation of the State of the Contracting Party carrying out expropriation; - without discrimination; - with the payment of adequate compensation without delay. Compensation should be equal to the fair market value of the expropriated investment at the time when the investor became aware of the expropriation. Compensation must include interest corresponding to the effective interest rate and calculated for the period between the date of expropriation and the date of payment of compensation. Compensation is paid in the currency in which the investment was made, or, with the investor's consent, in any other currency. Compensation is subject to transfer abroad without restrictions and unnecessary delay.

 Article 5. Compensation for damages Investors of one of the Contracting Parties, whose investments in the territory of the other Contracting Party have been damaged as a result of war or other armed conflict, state of emergency, civil clashes or similar circumstances, are provided with a regime no less favorable than that applied to national investors or investors of third countries, upon compensation for the damage they suffered as a result of the above-mentioned circumstances of the damage.

Article 6. Transfer of payments related to investments 1. The Contracting Parties guarantee that all transfers of funds related to investments are carried out freely and without unnecessary delay in accordance with the procedure established by the legislation of the State of the Contracting Party, which may provide for: - rules for processing such transfers, taking into account that the very right of free transfer is not violated; - withholding taxes and fees from the transferred amounts; - protection of the legitimate rights of creditors or enforcement of judgments rendered during court proceedings. The procedure specified in this article must be fair and non-discriminatory. In this Agreement, transfers include: - the capital initially invested, as well as any additional foreign capital used to maintain or expand investments; - profits; - compensation in accordance with Article 4 of this Agreement; - payments arising from the resolution of an investment dispute; - payments in accordance with the loan agreement, as well as remuneration in connection with intellectual and industrial property rights, payments under management, technical and maintenance agreements; - compensation payments made in accordance with Article 5 of this Agreement; - payment for work on a regular basis for individuals of the State of the other Contracting Party Parties engaged in investment-related activities; - proceeds from the sale or liquidation of part or all of the investment, however, provided that the proceeds can be freely transferred only with the permission of the competent authority. 2. Transfers will be carried out without undue delay in freely convertible currency at the exchange rate applicable on the day of transfer, subject to payment of taxes and fees established by the laws of the States of the Contracting Parties and compliance with the norms of the currency laws of the States of the Contracting Parties. A transfer "without unnecessary delay" will be considered a transfer made during the time optimally required to perform formal actions related to the transfer.

Article 7. The principle of most-favored-nation treatment If the legislation of the State of a Contracting Party or the existing circumstances that have arisen between the Contracting Parties in accordance with international law contain additional regulations that generally or in detail provide for a more beneficial treatment in relation to investments made by investors of the other Contracting Party than provided for in this Agreement, then such regulations, in particular to the extent that they are more profitable, will have priority over this Agreement.

Article 8. Subrogation 1. If a Contracting Party or any institution authorized by it makes payments to any of the investors within the framework of a guarantee or insurance concluded in connection with investments, the other Contracting Party will recognize the assignment to the first Contracting Party or its institution of any rights or claims inherent to the investor. A Contracting Party or any of its institutions that have taken over the investor's rights are entitled to the same rights that the investor has and to claim such rights to the same extent, subject to the investor's obligations related to investments insured in this way. 2. In the case of subrogation defined in paragraph 1 of this Article, the investor will not make claims unless he is authorized by the Contracting Party or any of its institutions.  

Article 9. Disputes between the Contracting Parties 1. Disputes between the Contracting Parties concerning the interpretation and application of the provisions of this Agreement shall be resolved through diplomatic channels. 2. If no agreement is reached by the Contracting Parties within six months from the date of the dispute, the dispute, at the request of either Contracting Party, will be referred to a three-member arbitral tribunal. Each of the Contracting Parties appoints one arbitrator, and the appointed arbitrators select the chairman, who will be a citizen of a third State maintaining diplomatic relations with both Contracting Parties. 3. If one of the Contracting Parties does not appoint an arbitrator and does not agree with the invitation of the other Contracting Party to make such an appointment within two months, the arbitrator shall be appointed at the request of that Contracting Party by the President of the International Court of Justice in The Hague. 4. If the two arbitrators cannot agree on the choice of a chairman within two months from the date of their appointment, he shall be appointed at the request of either Contracting Party by the President of the International Court of Justice. 5. If, in the cases specified in paragraphs 3 and 4 of this article, the President of the International Court of Justice is unable to perform the specified function or, if he is a national of one of the Contracting Parties, such appointment will be made by the Vice-President, and if he is unable to perform the relevant functions or is a national of one of the Contracting Parties, then The appointment will be made by the most senior judge of the International Court of Justice, who is not a citizen of either Contracting Party. 6. Without violating other agreements between the Contracting Parties, the arbitral tribunal shall establish its own rules of procedure. The arbitration court makes a decision by a majority vote. 7. Each of the Contracting Parties shall bear the costs of maintaining its member of the court, as well as in accordance with its share in the arbitration procedure; the costs of maintaining the chairman and other expenses shall be covered by the Contracting Parties in equal parts. However, the court may, in its decision, determine a greater share in the costs of one of the Contracting Parties and such a decision will oblige both Contracting Parties. 8. The court's decisions are final and binding on each of the Contracting Parties.

Article 10. Disputes between a Contracting Party and an investor of the State of the other Contracting Party 1. In order to resolve a dispute between a Contracting Party and an investor of the State of the other Contracting Party in relation to investments, negotiations will be conducted between the parties concerned. 2. If the negotiations are not completed by a decision within six months from the date of the written proposal to start negotiations, the parties to the dispute may proceed as follows: a) if the dispute concerns obligations under Articles 4, 5, 6 of this Agreement, it shall, at the request of the investor, be referred to the arbitration court for decision; b) a dispute not specified in subparagraph a) paragraph 2 of this article, will be submitted by agreement of both parties to the dispute for consideration by the arbitral tribunal. 3. An arbitration court will be established for each individual case. Unless the parties to the dispute agree otherwise, each of them will appoint one arbitrator. The appointed arbitrators select the chairman, who will be a citizen of a third country. The arbitrators must be appointed within two months from the date of receipt of the request to submit the dispute for consideration by the arbitral tribunal, and the chairman within the next two months. 4. If the deadlines specified in paragraph 3 of this article have not been met, either party to the dispute may, without having other agreements, apply to the Chairman of the Arbitration Court at the International Chamber of Commerce in Paris with a request to make the necessary appointments. If the Chairman is unable to perform this function or is a national of a Contracting State, the same provisions of paragraph 5 of Article 9 of this Agreement shall apply. 5. Unless otherwise agreed by the parties, the arbitral tribunal shall establish its own rules of procedure. The decisions are final and binding. Each of the Contracting Parties will ensure the recognition and enforcement of arbitral awards. 6. Each of the parties to the dispute shall bear the costs of maintaining its member of the court and, in accordance with its own share in the arbitration procedure, they will bear the costs of maintaining the chairman and other expenses in equal parts as the parties to the dispute. However, the court in its decision may establish a different proportion of the division of costs incurred by one of the parties, and this decision will be binding on both parties. 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. 8. If the two Contracting Parties become Parties to the Washington Convention of March 18, 1965 "On the Settlement of Disputes concerning Investments between States and Citizens of Other States", disputes will be sent to the International Investment Dispute Resolution Center as follows: disputes referred to in paragraph 2, subparagraph (a) of this article, at the request of the investor, a disputes referred to in paragraph 2, subparagraph (b) of this Article, by mutual agreement of the Contracting Parties.

Article 11. Final provisions 1. This Agreement is subject to ratification and will enter into force after the exchange of notes of the Contracting Parties on the ratification of this Agreement. The effective date of this Agreement is the date of receipt of the last note. 2. This Agreement shall be in force for 10 (ten) years after its entry into force and shall remain in force until terminated in accordance with paragraph 6 of this article. 3. The provisions of this Agreement, from the moment of its entry into force, shall also apply to investments made since December 16, 1991. 4. With respect to those investments that were made prior to the termination of this Agreement, the provisions of all previous articles of this Agreement will remain in force for a period of 10 (ten) years from the date of termination. 5. This Agreement may be amended by written agreement between the Parties. Any amendment should enter into force if each Party has notified the other Party that it has regulated all its own formalities preventing the entry into force of such an amendment. 6. Each of the Contracting Parties may notify the other Contracting Party in writing one year before the expiration date of the termination of this Agreement upon the expiration of the first nine years or at any time thereafter.

In witness whereof, we, duly authorized representatives, have signed this Agreement.

Done in Dushanbe on December 16, 1999, in two original copies in the Kazakh, Tajik and Russian languages, all texts being equally authentic.

In case of discrepancies in the interpretation of the provisions of this Agreement, the Contracting Parties will be guided by the text of the Agreement in Russian.

For the Government For the Government Republic of Kazakhstan Republic of Tajikistan

(Experts: Umbetova A.M., Sklyarova I.V.)

President

Republic of Kazakhstan

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