On the ratification of the Agreement between the Government of the Republic of Kazakhstan, on the one hand, and the Belgian-Luxembourg Economic Union, on the other hand, on the mutual Promotion and Protection of Investments

Home / RLA / On the ratification of the Agreement between the Government of the Republic of Kazakhstan, on the one hand, and the Belgian-Luxembourg Economic Union, on the other hand, on the mutual Promotion and Protection of Investments

On the ratification of the Agreement between the Government of the Republic of Kazakhstan, on the one hand, and the Belgian-Luxembourg Economic Union, on the other hand, on the mutual Promotion and Protection of Investments

The Law of the Republic of Kazakhstan dated December 30, 1999 No. 23

To ratify the Agreement between the Government of the Republic of Kazakhstan, on the one hand, and the Belgian-Luxembourg Economic Union, on the other hand, on Mutual Promotion and Protection of Investments, concluded in Almaty on April 16, 1998.

President of the Republic of Kazakhstan

Agreement*

between the Government of the Republic of Kazakhstan,

on the one hand, and the Belgian-Luxembourg Economic

The Union, on the other hand, is about mutual encouragement

and investment protection

*(Entered into force on February 6, 2001 - Bulletin of International

Treaties of the Republic of Kazakhstan, 2002, No. 1, art. 5)

The Government of the Republic of Kazakhstan, on the one hand, and the Government of Kingdom of Belgium, acting on its own behalf and on behalf of the Government The Grand Duchy of Luxembourg, by virtue of existing agreements, the Government of Wallonia, the Government of Flanders and the Government of The Brussels Region, on the other hand (hereinafter referred to as the "Contracting Parties"), desiring to strengthen their economic cooperation by creating favorable conditions for investment by citizens of one Contracting Party. The Parties in the territory of the other Contracting Party, have agreed on the following:

Article 1 Definitions For the purpose of this Agreement: 1. The term "investors" means: a) "citizens", i.e. any natural person who, according to the legislation of the Republic of Kazakhstan or the Kingdom of Belgium, the Grand Duchy of Luxembourg, is a citizen of the Republic of Kazakhstan or The Kingdom of Belgium and the Grand Duchy of Luxembourg, respectively; b) "companies", i.e. any legal entity established in accordance with the legislation of the Republic of Kazakhstan or the Kingdom of Belgium, the Grand Duchy of Luxembourg and having the seat of its management body in the territory of the Republic of Kazakhstan or the Kingdom of Belgium, the Grand Duchy of Luxembourg, respectively. 2. The term "investment" means any type of asset and any contribution in cash, in kind, or in services invested or reinvested in any sector of economic activity. For the purposes of this Agreement, investments will include, but are not limited to, the following: a) movable and immovable property and any other rights such as mortgages, retention rights, mortgages, usufruct and similar rights; b) shares, joint stock rights and any other forms of participation in companies established in the territory of one of the Contracting Parties; c) bonds, monetary claims and claims for any fulfillment, having an economic value; d) copyrights, industrial property rights, technical processes, trademarks and "goodwill"; e) concessions granted under public laws or under an agreement, including concessions for exploration, development, extraction or use of natural resources. The term "investment" also refers to indirect investments made by investors of one Contracting Party in the territory of the other Contracting Party through an organization established in another State over which investors of the first Contracting Party exercise decisive control. A change in the legal form in which assets and capital were invested or reinvested does not affect their definition as "investments" for the purposes of this Agreement. 3. The term "income" means the proceeds from an investment and includes, in particular, but not exclusively, profits, interest, capital gains, dividends, royalties and payments. 4. The term "territory" is applied to the territory of the Republic of Kazakhstan and the territory of the Kingdom of Belgium, the territory of the Grand Duchy Luxembourg, as well as to the marine areas, i.e. marine and underwater areas that extend beyond the territorial waters of the respective States and to which, in accordance with international law, the sovereign rights of the latter and their jurisdiction apply for the purpose of exploration, use and conservation of natural resources.

Article 2 Investment promotion 1. Each of the Contracting Parties will encourage investments made in its territory by investors of the other Contracting Party. The Parties, and will allow such investments in accordance with their legislation. 2. In particular, each Contracting Party authorizes the conclusion and execution of licensing contracts and agreements on commercial, administrative or technical assistance, insofar as such activities are related to such investments.

Article 3 Investment protection 1. All investments, direct or indirect, made by investors of one Contracting Party, will be provided with fair and equal treatment in the territory of the other Contracting Party. Each Contracting Party will ensure at all times compliance with its obligations towards the other Contracting Party. 2. With the exception of measures necessary to preserve public order, such investments will be provided w Article 3 Investment protection 1. All investments, direct or indirect, made by investors of one Contracting Party, will be provided with fair and equal treatment in the territory of the other Contracting Party. Each Contracting Party will ensure at all times compliance with its obligations towards the other Contracting Party. 2. With the exception of measures necessary to preserve public order, such investments will be provided with permanent protection and security, i.e. No unjustified or discriminatory measures will be allowed that could interfere by law or in practice with their management, operation, use, possession or liquidation. 3. The treatment and protection referred to in paragraphs 1 and 2 will be at least equal to the treatment and protection provided to investors of a third State, and in no case can they be less favorable than the treatment and protection recognized under international law. 4. However, this regime does not apply to the advantages that one of the Contracting Parties provides to investors of a third state in connection with joint participation with it in a free trade zone, customs union, common market or any other form of regional economic organization.

Article 4 Deprivation and restriction of property 1. Each Contracting Party undertakes not to take any expropriation or nationalization measure or any other measure on its territory, ultimately directly or indirectly depriving investors of the other Contracting Party of their investments. 2. If considerations of public safety, security or national interests require a violation of the provisions of paragraph 1, the following conditions will be met:: a) the measures will be taken in accordance with the procedure established by law; b) the measures will not be discriminatory and will not contradict any specific obligations; c) the measures will be accompanied by provisions for the payment of adequate and effective compensation. 3. Such compensation will be equal to the actual value of the investment the day before the measures were taken or they became known. Such compensation is paid in the currency of the State of which the investor is a national, or any other convertible currency. It will be paid without delay and is subject to free transfer. The compensation will include interest at the usual commercial rate from the date of determining its amount until the day of payment. 4. Investors of one Contracting Party whose investments in the territory of the other Contracting Party have been damaged as a result of war or other armed conflict, revolution, state of emergency or civil strife by the other Contracting Party with respect to restitution, compensation, compensation or other settlement shall be provided with treatment at least equal to that which it provides to investors of the most favored nation. 5. With respect to the issues regulated by this Article, each Contracting Party shall provide investors of the other Contracting Party with The Parties will receive a regime that will be at least equal to that provided on its territory to investors of the most favored nation. This regime will in no way be less favorable than the one recognized under international law.

Article 5 Transfers 1. Each Contracting Party will provide investors of the other Contracting Party with the free transfer to and from its territory of all payments related to investments in accordance with its legislation, including, but not limited to: a) the amounts required for the establishment, operation or expansion of the investment; (b) The amounts required for payments under the contract, including the amounts required to reimburse loans, royalties and other payments arising from licenses, franchises, concessions and other similar rights, as well as salaries of foreign personnel; (c) proceeds from investments; (d) proceeds from the total or partial liquidation of investments, including income from the capital from the sale of capital assets or an increase in invested capital; e) compensation paid in accordance with

Article 4. 2. Citizens of each Contracting Party who have obtained permission to work in the territory of the other Contracting Party in connection with investments also have permission to transfer the relevant part of their earnings to their country of origin. 3. Transfers will be made in freely convertible currency at the exchange rate applied on the day of transfer to transactions of cash goods in the currency used. 4. Each Contracting Party will issue the permits necessary to make transfers without unnecessary delay, without other costs other than the usual taxes and expenses. 5. The guarantees referred to in this Article will be at least equal to the guarantees provided to investors of the State to which the most favored nation regime applies.

Article 6 Subrogation 1. If one Contracting Party or any of its public institutions pays compensation to its own investors under a guarantee covering the investment, the other Contracting Party will recognize the assignment of the investor's rights to the first Contracting Party or its relevant public institution. 2. With respect to the transferred rights, the other Contracting Party will have the right to require the policyholder, who has violated the rights of the insured investors, to fulfill the obligations of the latter under the law or contract.

Article 7 Applicable rules If investment issues are regulated both by this Agreement and by the national legislation of one Contracting Party, or by existing or subsequent international conventions, investors of the other Contracting Party have the right to apply those provisions that are most favorable.

Article 8 The principle of the most favored nation In all matters related to the investment regime, investors of each Contracting Party shall enjoy the most-favored-nation treatment in the territory of the other Contracting Party.

Article 9 Special Agreements Investments made in accordance with a special agreement concluded between one Contracting Party and investors of the other Contracting Party must be provided for in the provisions of both this Agreement and the special agreement. A special agreement means an agreement between a Contracting Party and an investor of the other Contracting Party regarding specific investments in the territory of the first Contracting Party.

Article 10 Settlement of investment disputes 1. About any investment dispute between an investor of the same The Contracting Party and the other Contracting Party shall be notified in writing by the Party that first raised the issue. The notification must be accompanied by a note with a sufficiently detailed indication of the circumstances of the issue. As soon as possible, the Parties shall take measures to resolve the dispute through negotiations, seeking expert advice from a third party, if necessary, or through reconciliation between the Contracting Parties. By the parties through diplomatic channels. 2. If it is impossible to resolve the dispute through negotiations with a direct agreement or through reconciliation through diplomatic channels within six months from the date of the written proposal to start negotiations, the dispute, at the investor's choice, is referred to the competent judicial authority of the State where the investment was made or to international arbitration. For this purpose, each Contracting Party shall agree in advance and without fail to resolve the dispute through arbitration. Such consent implies that both Parties waive the right to demand that all administrative or judicial remedies be exhausted. 3. In the case of international arbitration, the dispute is referred to one of the organizations listed below, at the investor's choice, for consideration for its resolution.: - an arbitration court (UNICITRAL) appointed in each individual case in accordance with the rules of arbitration established by the United Nations Commission on International Trade Law; - to the International Center for Settlement of Investment Disputes (ICISD), established by the Convention on Settlement of Investment Disputes between States and Nationals of Other States, opened for signature in Washington on March 18, 1965, when each State Party to this Agreement will become a party to the said Convention. In case of non-compliance with this requirement, each Contracting Party The Party agrees that the consideration of this dispute is referred to arbitration in accordance with the Rules on Additional Powers of the International Center for Settlement of Investment Disputes.: - to the Arbitration Court of the International Chamber of Commerce in Paris; - to the Arbitration Institute of the Chamber of Commerce in Stockholm. If the arbitration procedure is initiated by the Contracting Party Parties, this Contracting Party shall apply in writing to the investor involved in the dispute with a request to appoint an arbitration organization to which the dispute will be referred for consideration. 4. 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 in accordance with with an insurance policy or guarantee provided for in Article 6 of this Agreement. 5. The arbitral tribunal shall make a decision on the basis of domestic law, including rules relating to conflicts of law, of the Contracting Party involved in the dispute in whose territory the investments were made, as well as on the basis of the provisions of this Agreement, the terms of a special agreement that may be concluded with respect to the investment, and the principles of international law. 6. Arbitral awards are final and binding on The parties to the dispute. Each Contracting Party undertakes to implement the decisions in accordance with its domestic legislation.

Article 11 Disputes between the Contracting Parties concerning the interpretation or Application of this Agreement 1. Disputes between the Contracting Parties concerning the interpretation and application of the provisions of this Agreement will be resolved, if possible, through diplomatic channels. 2. If the dispute could not be resolved through diplomatic channels, it is referred to the joint commission of representatives of the two Sides'. This commission meets without due delay at the request of the party that first raised the issue. 3. If the joint commission is unable to resolve the dispute, the latter, at the request of either Contracting Party, will be referred to an arbitration court established on a case-by-case basis as follows: Each Contracting Party shall appoint one arbitrator within a period of two months from the date on which one Contracting Party notifies the other Party of its intention to submit the dispute to arbitration. During the two-month period following their appointment, these two arbitrators appoint, by mutual agreement, a citizen of a third country as chairman of the arbitral tribunal. If the two arbitrators cannot agree on the choice of a chairman within the specified time, he shall be appointed by the President of the International Court of Justice at the request of either Contracting Party. If the President of the International Court of Justice is a national of one of the Contracting Parties or of a State with which one of the Contracting Parties does not have diplomatic relations, or for any other reason, he cannot perform these functions: the request to make this appointment is transmitted to the Vice-President of the International Court of Justice. If the Vice-President is unable to perform these functions or is a national of one of the Contracting Parties, the appointment shall be made by the most senior judge of the International Court of Justice who is not a national of either Contracting Party. 4. Without violating other rulings between the Contracting Parties, the arbitral tribunal will establish its own rules of procedure. The arbitral tribunal makes decisions by a majority vote: they are final and binding on each of the Contracting Parties. 5. Each of the Contracting Parties shall bear the costs of maintaining the arbitrator. The costs associated with the appointment of the third arbitrator and the administrative costs of the court shall be borne by the Contracting Parties in equal parts. However, the court may determine in its decision the greater participation of one of the Contracting Parties and such a decision will be binding on the Contracting Parties.

Article 12 Previous investments This Agreement, from the moment of its entry into force, also applies to investments made since December 1991 by investors of one Contracting Party in the territory of the other Contracting Party in accordance with the legislation and rules of the latter.

Article 13 Entry into force and term of validity 1. This Agreement shall enter into force immediately from the date of exchange By the Contracting Parties with instruments of ratification. The agreement will be valid for ten years. If, within at least six months prior to the expiration of this Agreement, any of the Contracting Parties has not been notified of the termination of its validity, the validity of this Agreement The Agreement is automatically extended each time for a subsequent period of ten years, and it is understood that each Contracting Party reserves the right to terminate the validity period. The Agreement is notified at least six months prior to the expiration date of the current period of validity. 2. 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 ten years from the date of termination. 3. 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. In witness whereof, we, duly authorized representatives, have signed this Agreement.

Done in Almaty on April 16, 1998, in two original copies, each in the Kazakh, Russian, English, French and Dutch languages, all texts being equally authentic. In case of discrepancies in the interpretation of the provisions of this The Contracting Parties will be guided by the English text of the Agreement.

* * *

President

Republic of Kazakhstan

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