On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the International Bank for Reconstruction and Development on the Establishment and Operation of offices in the Republic of Kazakhstan

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On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the International Bank for Reconstruction and Development on the Establishment and Operation of offices in the Republic of Kazakhstan

The Law of the Republic of Kazakhstan dated May 11, 2016 No. 1-VI SAM

 To ratify the Agreement between the Government of the Republic of Kazakhstan and the International Bank for Reconstruction and Development on the Establishment and Operation of offices in the Republic of Kazakhstan, signed in Davos on January 21, 2016.

President

Republic of Kazakhstan

N. NAZARBAYEV

Agreement between the Government of the Republic of Kazakhstan and the International Bank for Reconstruction and Development on the establishment and operation of offices in the Republic of Kazakhstan

(Entered into force on May 11, 2016 - Bulletin of International Treaties of the Republic of Kazakhstan 2016, No. 6, Article 98)

The Government of the Republic of Kazakhstan and the International Bank for Reconstruction and Development (the "World Bank"), hereinafter referred to as the "Parties";

 TAKING INTO ACCOUNT the Articles of Agreement of the International Bank for Reconstruction and Development, ratified by the Law of the Republic of Kazakhstan dated July 9, 2004 "On Ratification of the Statutory Documents of certain International Organizations" (hereinafter referred to as the "Articles of Agreement");

CONSIDERING that the Articles of the Agreement continue to be in force and in force, and their effect will in no way be limited by this Agreement;

CONSIDERING that the Republic of Kazakhstan is a member of the World Bank and adheres to the Articles of the World Bank Agreement, which are binding on the Republic of Kazakhstan;

DESIRING to define more precisely the status, privileges and immunities of offices in Kazakhstan and to enable the World Bank to achieve its goals and operate in Kazakhstan;

HAVE AGREED on the following:

Article I Objectives of the World Bank

The objectives of the World Bank, as set out in article 1 of the Articles of Agreement, are:

 (i) To assist in the reconstruction and development of the territories of member countries by facilitating investments for industrial purposes, including the restoration of economies destroyed or damaged by war, the reconversion of production facilities for peaceful purposes, as well as stimulating the development of production facilities and resources in less developed countries.

 (ii) Assistance in the implementation of private foreign investments by providing guarantees or participation in loans, as well as other investments of private individuals; in case of insufficient private capital on reasonable terms, replenishment of private investments by providing on acceptable terms financing for production needs from own capital, as well as from funds created at the expense of its other resources.

 (iii) Promoting the long-term balanced development of international trade and maintaining balance of payments balances by stimulating international investment to develop the productive resources of the member countries, thereby contributing to increased productivity, living standards and improved working conditions in their territories.

 (iv) Arranging loans or providing loan guarantees in connection with international loans through other channels in order to give priority to more useful and urgent projects, regardless of their scale.

 (v) Carrying out operations taking into account the impact of international investments on business conditions in the territories of the member countries, and in the first post-war years, assisting in a smooth transition from a war economy to a peacetime economy.

Article II Definitions

Section 1. Capitalized terms used in this Agreement have the meanings specified in this Article II, except where the context otherwise requires.

Section 2. For the purposes of this Agreement:

(a) "Government" means the Government of the Republic of Kazakhstan;

(b) "World Bank" - International Bank for Reconstruction and Development;

(c) "Office" means the offices and premises of the World Bank in the Republic of Kazakhstan. Currently, the World Bank has offices in Almaty and Astana.;

(d) "Head of Office" means the head of the World Bank office, including the Permanent Representative and the Regional Director;

(e) "Official duties" means the actions necessary to achieve the objectives of the World Bank as provided for in the documents establishing the World Bank.;

(e) "World Bank staff" means all employees employed in accordance with the World Bank's staff rules and principles.

Article III Office

Section 1. The World Bank has an office in the Republic of Kazakhstan. The World Bank may staff its offices in the Republic of Kazakhstan, including local staff, to provide operational and administrative support services. The World Bank assumes full expenses for salaries and other payments to office staff and is responsible for organizing their transportation and accommodation in accordance with the principles of the World Bank. All employees of the World Bank who work in its office report to the Head of the office.

Section 2. The office premises are inviolable and are under the control and management of the World Bank. The Government will ensure that persons who are not authorized by the head of the office (or his/her representatives) are restricted from entering the office premises, as well as the concern caused by their presence in their immediate vicinity. The Government will assist the World Bank in finding suitable office space for the office at the request of the World Bank.

Article IV Certain immunities of the World Bank and its staff

Section 1. The World Bank will make all necessary efforts to ensure that the privileges, immunities, facilities and conditions provided by this Agreement are not abused, and for this purpose will establish such rules and regulations as it deems necessary and appropriate. The staff of the World Bank constantly cooperates with the Government in order to promote the proper administration of justice, ensure the enforcement of regulations on the protection of public order and laws in the Republic of Kazakhstan. In all cases, the World Bank strongly recommends that its employees comply with their legal obligations. In cases where the Government believes that abuse has occurred, the World Bank and the Government consult to determine whether such abuse has occurred and, if so, ensure that such a situation does not recur. The World Bank will revoke its immunity when, in its opinion, such immunity interferes with the normal administration of justice, and when it can be revoked without endangering the interests of the World Bank.

Section 2. The privileges and immunities provided for in this Agreement are not intended to provide World Bank employees with opportunities for personal gain. They are provided solely to ensure that the World Bank is able to carry out its official activities without hindrance at any time, and that the persons to whom these privileges and immunities are granted have full independence.

Section 3. The Government shall grant the World Bank and World Bank employees, regardless of nationality and domicile, in accordance with and in addition to the privileges, immunities and facilities provided for in the Articles of Agreement, the following privileges and immunities:

(a) The property and assets of the World Bank, wherever located, are not subject to any form of search, requisition, confiscation, expropriation or any other form of seizure as a result of acts of the executive or legislative authorities;

(b) The archives of the World Bank are inviolable wherever they are located;

(c) The World Bank, its assets, property and income, as well as its activities and transactions are not subject to any taxes and customs duties. The World Bank is also exempt from any obligation to collect or pay any taxes or duties.

(d) Employees are exempt from paying taxes and other mandatory contributions (such as contributions to social insurance funds and public and/or private pension funds) with or in respect of salaries and emoluments paid to them by the World Bank;

(e) The internal regulations of the World Bank, including those regarding the rules, principles and procedures of recruitment, should prevail in all cases concerning employment relations with employees of the World Bank in the Republic of Kazakhstan.;

(e) World Bank employees working in the office, together with their spouses and dependents, are exempt from restrictions on entry into the country and registration of foreigners.;

(g) Employees of the World Bank, as well as their spouses and dependents, enjoy the same currency exchange privileges as are granted to officials of the appropriate rank who are members of diplomatic missions.;

 (h) World Bank office staff, together with their spouses and dependents, enjoy the same repatriation benefits enjoyed by diplomatic representatives of the appropriate rank during international crises.;

(i) World Bank employees who are not citizens of the Republic of Kazakhstan have the right to import their furniture and property duty-free upon initial employment in the Republic of Kazakhstan; and

(e) World Bank employees working in the office, together with their spouses and dependents, are exempt from restrictions on entry into the country and registration of foreigners.;

(i) World Bank employees who are not citizens of the Republic of Kazakhstan have the right to import their furniture and property duty-free upon initial employment in the Republic of Kazakhstan; and

(k) The Government shall provide all World Bank employees serving in the Office with a document confirming that they are employees of the World Bank and are entitled to the privileges, immunities and benefits provided for in this Agreement or referred to therein. Persons who are dependent (including spouses and unmarried children) of World Bank employees who work in the office. The Republic of Kazakhstan also provides a document confirming the privileges and immunities extended to them.

Article V Head of Office

The Government grants the Head of the Office (including any official acting on behalf of the Head of the Office during his/her absence), his/her spouse, and dependents of the Head of the Office privileges, immunities, benefits, and conditions no less favorable than those provided to permanent representatives of other international organizations or diplomatic missions in the Republic of Kazakhstan.. This provision does not apply to the Head of the office, who is a citizen of the Republic of Kazakhstan.

Article VI Privileges in relation to communications

Section 1. Official correspondence and other official communications of the office are not subject to any censorship. The Office has the right to use a cipher, receive and send correspondence by couriers or bags, who enjoy the same immunities and privileges as diplomatic couriers and bags.

Section 2. The Government provides the World Bank with the necessary permits, licenses or other permits for telecommunications in accordance with the procedures established by the legislation of the Republic of Kazakhstan.

Article VII Immunity from legal process

Section 1. The World Bank enjoys immunity from any form of legal process, except in cases arising from or in connection with the exercise of its powers to issue or guarantee securities. Such immunity includes immunity from legal proceedings of any kind in respect of personnel matters. Any disagreement that arises between the World Bank and a World Bank employee is resolved in accordance with the World Bank's rules, principles, and hiring procedures through internal dispute resolution mechanisms that may be established by the World Bank. At the same time, the World Bank has the exclusive right to resolve such proceedings against its employees. Such immunity may be explicitly revoked by the World Bank in some specific cases in writing.

Section 2. According to section 3 of Article VII of the Articles of Agreement of the World Bank, no action shall be taken against the World Bank by the Republic of Kazakhstan or by a person acting or suing on behalf of the Republic of Kazakhstan.

Article VIII Financial conditions

Section 1. On the territory of the Republic of Kazakhstan, without being limited by financial controls, regulations or moratoriums of any kind, the World Bank may, to the extent necessary to maintain its own operations, hold funds, gold or currency of any kind and maintain accounts in any currency; and may freely transfer its funds, gold or currency from or to the Republic of Kazakhstan, or within its borders, and convert any currency into any other currency. Moreover, the World Bank may purchase the national currency of the Republic of Kazakhstan in exchange for any convertible currency in the amount periodically required by the Bank to pay its expenses in the Republic of Kazakhstan, at an official exchange rate no less favorable than that provided to other international organizations or diplomatic missions in the Republic of Kazakhstan.

Section 2. The Bank may use a portion of the subscription of the Republic of Kazakhstan and the paid share of the share capital in local currency to assist in the payment of local office expenses.

Article IX Import and export

The World Bank, its assets, income and other property:

(a) are exempt from import and export prohibitions and restrictions when the World Bank imports and exports items for official use to or from the territory of the Republic of Kazakhstan; however, it is assumed that items imported under the general rules will not be sold in the territory of the Republic of Kazakhstan except on terms agreed with the Republic of Kazakhstan; and

(b) are exempt from import and export prohibitions and restrictions on the import and export of their own publications.

Article X Final provisions, entry into force and termination

Section 1. This Agreement is intended to replace and completely supersedes the previous Agreement between the World Bank and the Republic of Kazakhstan on the Establishment of a Permanent Mission, signed on May 23, 1994. The aforementioned Agreement on the establishment of a Permanent Mission is terminated and has no further legal effect, and this Agreement regulates the activities of the World Bank offices in the Republic of Kazakhstan from the date of entry into force of this Agreement.

Section 2. This Agreement is legally binding for the World Bank and for the Republic of Kazakhstan from the day when the Government completes all internal procedures necessary for its entry into force. The Government will take the necessary actions on its territory to bring into force, in accordance with its legislation, the provisions and conditions provided for in this Agreement, and will also provide the World Bank with detailed information on the measures taken.

Section 3. This Agreement shall remain in force for six months from the date when one of the parties notifies the other party in writing of its intention to terminate it.

Section 4. Amendments or additions to this Agreement may be made by mutual agreement of the Parties and formalized in separate protocols that will form an integral part of this Agreement. The amendments shall enter into force immediately after the Parties have expressed their written consent.

Section 5. The provisions of this Agreement are aimed at further achieving the objectives provided for in the Articles of Agreement of the World Bank. In the event of a conflict between the provisions of the Articles of Agreement and this Agreement, the terms of this Agreement shall prevail.

Done in Davos, January 21, 2016, in two original copies, each in Kazakh, Russian and English. In case of disagreement in the interpretation of the provisions of this Agreement. The Parties will be guided by the English text.

IN WITNESS WHEREOF, the duly authorized undersigned representatives of both parties have signed this Agreement.

For and on behalf of the Government of the Republic of Kazakhstan ___________________________ Karim Massimov,

For and on behalf of the International Bank for Reconstruction and Development ___________________________ Jim Yong Kim

Prime Minister of the Republic of Kazakhstan

President of the World Bank Group

 RCPI's note!  The text of the Agreement in English is attached below.

President

Republic of Kazakhstan

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