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

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Decree of the President of the Republic of Kazakhstan dated April 20, 1995 No. 2218

In accordance with article 2 of the Law of the Republic of Kazakhstan dated December 10, 1993 "On the temporary delegation of additional powers to the President of the Republic of Kazakhstan and heads of local administrations", I hereby decree: 1. To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of Ukraine on the Promotion and Mutual Protection of Investments, signed in Almaty on September 17, 1994. 2. This Decree shall enter into force from the date of publication.

President

Republic of Kazakhstan

Agreement

between the Government of the Republic of Kazakhstan and

By the Government of Ukraine on the promotion and

mutual protection of investments

(unofficial text)

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on August 4, 1995)

The Government of the Republic of Kazakhstan and the Government of Ukraine (hereinafter referred to as the "Contracting Parties"), desiring to strengthen economic cooperation on a long-term basis for the mutual benefit of both Contracting Parties, intending to create and maintain favorable conditions for 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 this Agreement, will stimulate business initiative in this area, agreed on the following:

Article 1. Definitions For the purposes of this Agreement:

1. The term "investment" will cover any type of assets invested in connection with economic activity by an investor of one Contracting Party in the territory of the other Contracting Party in accordance with the applicable legislation of the latter and will include, in particular, but not exclusively:

a) movable and immovable property, as well as any other rights, such as mortgages, maintenance rights, loan security and similar rights;

b) shares, securities and debt obligations of legal entities or the property part of these legal entities;

c) loans, credits, targeted bank and financial deposits and other monetary claims related to the implementation of investments;

d) intellectual property rights, including copyrights, trademarks, patents, industrial designs, technological processes, know-how, trade secrets, trade names and goodwill related to the investment;

e) licenses and permits according to the law, including concessions for exploration, extraction, exploitation of natural resources;

f) Reinvestment of income and payments of principal and interest on loan agreements.

Any change in the form in which assets are invested will not affect their nature as investments.

2. The term "investor" means any natural or legal person who invests in the territory of another Contracting Party.:

(a) The term "natural person" means any natural person who has nationality or permanent residence in any of the Contracting Parties in accordance with its laws;

b) the term "legal entity" means, in relation to any Contracting Party, any institution, enterprise or organization established in accordance with the applicable legislation of each of the Contracting Parties and which have the right to make investments in the territory of the other Contracting Party.

3. The term "income" means the monetary amounts received as a result of investments and includes, in particular, but not exclusively, income, interest, capital gains, shares, dividends, royalties and fees for services.

4. The term "territory" means, with respect to each Contracting Party, the territory under its sovereignty, as well as the marine and underwater areas over which that Contracting Party exercises sovereignty, rights and jurisdiction in accordance with international law.

Article 2. Application of this Agreement The terms of this Agreement will apply to all investments made by investors of one Contracting Party in the territory of the other Contracting Party both before and after the entry into force of this Agreement.

Article 3. Promotion and protection of investments

1. Each Contracting Party shall encourage and create favorable conditions for investors of the other Contracting Party to make investments in its territory and allow such investments in accordance with its laws and regulations. 2. Investments of investors of either Contracting Party shall enjoy fair and equal treatment, full protection and security in the territory of the other Contracting Party.

Article 4. National and most-favored-nation treatment

1. Each Contracting Party in its territory shall provide investments of investors of the other Contracting Party with a regime that is fair and equal and no less favorable than that which it provides to investments of its own investors or investments of investors of any third State.

2. Each Contracting Party in its territory shall provide investors of the other Contracting Party with a regime in relation to the management, support, use, income generation and disposal of its investments that is fair and equal and no less favorable than that which it provides to its own investors or investors of a third State.

3. The provisions of paragraphs 1 and 2 of this Article shall not be interpreted to oblige one Contracting Party to extend to investors of the other Contracting Party the benefits of any regime, preferences or privileges that may be extended by the latter Contracting Party arising from:

a) any customs union or free trade area, or monetary union, or similar international agreements that affect the investment regime of cooperation, or other forms of regional cooperation to which any Contracting Party is or may become a party;

b) any international agreement or arrangement that relates entirely or mainly to taxation.

Article 5. Compensation for losses

1. When investments of investors of either Contracting Party suffer losses due to war, armed conflict, national emergency, coup, uprising, conspiracy, natural disaster, accidents, or other similar circumstances in the territory of the other Contracting Party, they will be provided by the latter Contracting Party with a regime in relation to restitution, compensation, compensation, or other solutions, no less favorable than the one that the latter Contracting Party provides to investors of any third country.

2. Without prejudice to the terms of paragraph 1 of this Article, investors of one Contracting Party who, during any of the events referred to in this paragraph, suffer losses in the territory of the other Contracting Party resulting from the requisition and destruction of their property by its forces or authorities, which was not caused by military action or was not required. If necessary, they are entitled to compensation.

Article 6. Expropriation

1. Investments of investors of any Contracting Party will not be nationalized, expropriated or subject to measures having an effect equivalent to nationalization or expropriation (hereinafter referred to as "expropriation") in the territory of the other Contracting Party, except for public purposes. Expropriation will be conducted in accordance with legal proceedings, on a non-discriminatory basis, and will be accompanied by conditions for the payment of immediate, adequate and effective compensation. Such compensation will be equal to the market price of the investment when the expropriation or threat of expropriation became publicly known, will include a percentage from the date of expropriation at the rate of LIV, will be made without delay, will be such that it is effectively implemented and freely transferred.

2. The aggrieved investor will have the right to an immediate review by the judicial authority of this Contracting Party of his case, and an assessment of his investments in accordance with the principles set out in this article.

3. The provisions of paragraph 1 of this Article will also apply when a Contracting Party expropriates the assets of a company that has acquired the status of a joint-stock company or is based under applicable law in any part of its own territory and in which investors of the other Contracting Party have a share.

Article 7. Transfers

1. The Contracting Parties shall guarantee the transfer of payments related to investments and income in accordance with the applicable legislation of the Contracting Parties. Transfers will be made without any restrictions or delays. Such transfers will include, in particular, but not exclusively:

a) capital and additional monetary amounts to support or increase investments;

b) income, interest, dividends and other current income;

c) payments made in accordance with loan agreements related to investments;

d) royalties or fees for services;

e) proceeds from the sale or liquidation of investments.

2. For the purposes of this Agreement, the exchange rates will be the official rates, in accordance with the applicable laws of the Contracting Parties, which are valid for current agreements on the date of transfer, unless otherwise agreed.

Article 8. Subrogation

1. If a Contracting Party or its designated intermediary makes payments to its own investors in accordance with the guarantee it has provided in connection with an investment in the territory of the other Contracting Party, the latter Contracting Party recognizes: a) the transfer, either by law or under a legitimate agreement in that country, of any right or claim of the investor to the former To the Contracting Party or to its designated intermediary, since both, b) that the first Contracting Party or its designated intermediary has obtained the right as a result of subrogation to exercise the rights and make demands of this investor and will assume obligations related to this investment. 2. The rights or claims obtained as a result of subrogation will not exceed the scope of the investor's rights and requirements.

Article 9. Disputes between a Contracting Party and an investor of the other Contracting Party

1. Any dispute that may arise between an investor of one Contracting Party and the other Contracting Party in connection with an investment in the territory of that Contracting Party shall be the subject of negotiations between the Contracting Parties to the dispute.

2. If any dispute between an investor of one Contracting Party and the other Contracting Party cannot be resolved in this way within six months from the date of submission of the written request, the investor will have the right to transfer the case.:

a) for consideration by the judicial authority of the Contracting Party in whose territory the investment is being made, or

b) to the International Center for Settlement of Investment Disputes (ICSID), bearing in mind the relevant terms of the Convention on Settlement of Investment Disputes between States and Nationals of Other States, which was opened for signature in Washington, D.C., on March 18, 1965, in the event that both Contracting Parties became parties to this Convention, or c) to an arbitrator or to an international ab hoc arbitral tribunal established in accordance with the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). The parties to the dispute may agree to amend these Rules in writing. The arbitral awards will be final and binding on both parties to the dispute.

Article 10. Settlement of disputes between Contracting Parties By the Parties

1. Disputes between the Contracting Parties concerning the interpretation or application of this Agreement should, if possible, be resolved through mutual consultations and negotiations. 2. If such a dispute cannot be resolved in this way within six months of its commencement, it will, at the request of either Contracting Party, be submitted to Arbitration in accordance with the provisions of this article.

3. An arbitration Court will be established for each individual case as follows: within two months of receiving a written request for an arbitration award, each of the Contracting Parties will appoint one member of this Court. These two members will then elect a citizen of a third State, who, after approval by the Contracting Parties, will be appointed President of the Court (hereinafter referred to as the "President"). The Chairman will be appointed within three months from the date of appointment of the other two members.

4. If during any of the periods specified in paragraph 3 of this Article the necessary appointments have not been made, any 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 it turns out that he is a citizen of a Contracting Party or if other reasons prevent him from performing this function, the Vice-Chairman will be invited to make the necessary appointments. If it turns out that the Vice-President is also a national of a Contracting Party or is unable to perform the specified function, the next-oldest member of the International Court of Justice, who does not have the nationality of any of the Contracting Parties, will be invited to make the necessary appointments and can perform the specified function without hindrance.

5. The Arbitration Court will reach its decisions by a majority vote. Such decisions will be binding on each Contracting Party. Each Contracting Party will maintain expenses for its members of the court and its representation in the arbitration proceedings; expenses for the Chairman and other expenses will be maintained in equal parts by both Contracting Parties. The Arbitral Tribunal will determine its own procedure and may, by its decision, determine which of the Contracting Parties will bear the majority of the costs.

Article 11. Application of other rules and special obligations

1. If the issue is regulated simultaneously by this Agreement and another international agreement to which both Contracting Parties are parties, nothing in this Agreement will prevent the Contracting Parties or any of their investors who invest in the territory of the other Contracting Party from taking advantage of those rules that are more favorable in relation to their case.

2. If the treatment to be provided by one Contracting Party to investors of the other Contracting Party in accordance with its laws and regulations or other special contractual provisions is more favorable than that provided by this Agreement, a more favorable one will be provided.

Article 12. Amendments and additions to this Agreement may be made 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 relevant formalities preventing the entry into force of such an amendment.

Article 13. Entry into force, duration and termination of the Agreement

1. Each Contracting Party shall notify the other Contracting Party in writing of the completion of the procedures necessary under its current legislation for the entry into force of this Agreement. This Agreement will enter into force on the date of the last written notification.

2. This Agreement remains in force for a period of ten years. Its validity will be automatically extended for the following periods, unless one of the Contracting Parties notifies the other Contracting Party in writing of its intention to terminate this Agreement at least six months before the expiration of the relevant period.

3. With respect to investments made prior to the termination of this Agreement, the terms of this Agreement (Articles 1-11) will remain valid for a period of ten years from the date of termination.

Done in Almaty on September 17, 1994, in two valid copies, each in the Kazakh, Ukrainian and Russian languages, all texts being equally authentic.

President

Republic of Kazakhstan

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