On the ratification of the Agreement on the Promotion and Mutual Protection of Investments between the Republic of Kazakhstan and the Kingdom of the Netherlands

Home / RLA / On the ratification of the Agreement on the Promotion and Mutual Protection of Investments between the Republic of Kazakhstan and the Kingdom of the Netherlands

The Law of the Republic of Kazakhstan dated May 8, 2007 No. 250

To ratify the Agreement on the Promotion and Mutual Protection of Investments between the Republic of Kazakhstan and the Kingdom of the Netherlands, signed in The Hague on November 27, 2002.

President of the Republic of Kazakhstan

AGREEMENT ON THE PROMOTION AND MUTUAL PROTECTION OF INVESTMENTS BETWEEN THE REPUBLIC OF KAZAKHSTAN AND THE KINGDOM OF THE NETHERLANDS

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on August 1, 2007)

The Republic of Kazakhstan and the Kingdom of the Netherlands, hereinafter referred to as the Contracting Parties, wishing to strengthen the traditional friendly ties between their countries, expand and strengthen economic relations between them, in particular with regard to investments by persons of one Contracting Party in the territory of the other Contracting Party, recognizing that the agreement on the treatment provided to such investments will stimulate capital inflows and technology, economic development of the Contracting Parties, and also recognizing the desirable provision of fair and equal treatment, agreed on the following:

Article 1

For the purposes of this Agreement:

1) the term "investment" includes every type of asset and, in particular, but not exclusively: movable and immovable property, as well as any other property rights in respect of all types of valuables; rights acquired through shares, bonds and other types of interests in companies and joint ventures; rights to money, other assets or any other income of economic value; intellectual and industrial property rights, goodwill and know-how; rights granted in accordance with State legislation, including the rights to explore, explore, extract, and exploit natural resources;

2) the term "persons" in relation to each of the Contracting Parties means: any natural person who is a citizen of a Contracting Party; legal entities registered in accordance with the laws of these Contracting Parties; legal entities not registered in accordance with the laws of this Contracting Party, but controlled directly or indirectly by natural or legal persons, definitions which are listed above in subparagraph 2 of this article;

(3) The term "territory" means the land surface, including the airspace and subsoil of the Contracting Parties, the maritime territories, the continental shelf and the coastal maritime territories of the respective Contracting Parties to the extent that these States exercise sovereign rights and jurisdiction in accordance with international law.

Article 2

Each Contracting Party, within the framework of its legislation, will promote economic cooperation by protecting investments of persons of the other Contracting Party on its territory. In accordance with its right to exercise the powers granted by its legislation, each Contracting Party will encourage such investments.

Article 3

1. Each Contracting Party shall ensure fair and equitable treatment for investments of persons of the other Contracting Party and shall not unreasonably or discriminatingly prejudice the activities, management, maintenance, use, implementation or disposal of persons in respect of these investments. Each Contracting Party provides such investments with full security and protection.

2. In particular, each Contracting Party provides such investments with a regime that in any case should not be less favorable than the regime provided either to investments of its own persons or to investments of any third State, depending on which of the regimes is more favorable for the interested investor.

3. If a Contracting Party has provided special advantages to citizens of any third State on the basis of agreements establishing customs, economic, monetary unions or similar organizations, or on the basis of temporary agreements leading to the creation of such unions or organizations, that Contracting Party is not obligated to provide such advantages to persons of the other Contracting Party.

4. Each Contracting Party shall comply with any obligations it assumes with respect to investments of persons of the other Contracting Party.

5. If the provisions of the legislation of either Contracting Party or obligations under international law currently in force or in the future between the Contracting Parties, in addition to this Agreement, contain a rule, general or special, granting investments of persons of the other Contracting Party a more favorable treatment than that provided for in this Agreement, then such rule It should prevail over this Agreement to the extent that it is more favorable.

Article 4

With respect to taxes, fees, payments and financial deductions and exemptions from their payment, each Contracting Party shall grant to persons of the other Contracting Party engaged in any type of economic activity on its territory treatment no less favorable than that which it grants to its own persons or to persons of any third State in similar conditions, depending on which one is more favorable for the persons in question. For this purpose, however, no special fiscal benefits granted by this Party are taken into account: in accordance with the Agreement on the Avoidance of Double Taxation; as a result of its participation in the customs union, economic union or similar organization; on the basis of reciprocity with a third State.

Article 5

The Contracting Parties guarantee that payments related to investments can be transferable. Transfers are made in freely convertible currency without restrictions or delays. Such transfers include, in particular, but not exclusively: 1) profits, interest, dividends and other current income; 2) necessary funds: for the purchase of raw materials or auxiliary materials, semi-finished products or finished products; for the renewal of fixed assets in order to preserve investments; 3) additional funds necessary for the development of investments; 4) funds for repayment of loans; 5) royalties and fees; 6) income of individuals; 7) income from the sale or liquidation of investments; 8) payments in accordance with Article 7 of this Agreement.

Article 6

None of the Contracting Parties shall take any measures restricting, directly or indirectly, persons of the other Contracting Party on their investments, until the following conditions arise: the measures are taken in the interests of the State and with due observance of legislative procedures; the measures are not discriminatory or do not contradict any obligations that the Contracting Party undertaking such measures measures she could have given; measures have been taken with regard to fair compensation. Such compensation represents the true value of the investment and includes interest at the usual commercial rate up to the payment date, and in order to be effective for applicants, must be paid and transferred without delay to the country indicated by the interested applicant and in the currency of the country of which the applicants are persons, or in any convertible currency. acceptable to the applicant.

Article 7

Persons of one Contracting Party who have suffered losses in respect of their investments in the territory of the other Contracting Party as a result of war or other armed conflict, revolution, state of emergency, insurrection, rebellion or mass riots, shall be provided by this Contracting Party with a regime no less favorable than the one that this Contracting Party provides to its own persons or to persons of any third State, depending on, which is more favorable for stakeholders?

Article 8

1. If a Contracting Party or an authority designated by it (hereinafter referred to as the "Indemnifying Party") makes a payment in compensation for losses or under a guarantee provided in respect of an Investor's investment (hereinafter referred to as the "receiving Party") in the territory of another Contracting Party (hereinafter referred to as the "receiving Party"), the receiving Party recognizes: transfer of To the Party compensating for losses, all rights and claims in respect of such investment; the right of the indemnifying Party to exercise all such rights and enforce such claims by virtue of subrogation.

2. In any case, the Party compensating for losses is entitled to: the same treatment with respect to the rights and claims transferred to it by virtue of the transfer of the rights referred to in paragraph 1; the same payments due in accordance with these rights and claims, to which the receiving Party was entitled by virtue of this Agreement in in relation to the relevant investment.

3. In any proceedings under Article 9, a Contracting Party shall not insist, as a defense, counterclaim, right to set off claims, or for any other reason, that compensation for damage or other compensation for all or part of the claimed damage has been received or will be received in accordance with an insurance or surety agreement.

Article 9

Each Contracting Party hereby confirms its agreement to submit for consideration any legal dispute that has arisen between one Contracting Party and a person of the other Contracting Party regarding investments of this person in the territory of the latter Contracting Party to the International Center for Settlement of Investment Disputes for settlement by conciliation or arbitration in accordance with the Convention on Settlement of Investment Disputes between States and Persons of Other Contracting Parties. of the United States, opened for signature in Washington on March 18, 1965. A legal entity that is a person of one Contracting Party and which, prior to the occurrence of such a dispute, was controlled by persons of the other Contracting Party, in accordance with Article 25 (2) (b) of the said Convention, for the purposes of this Convention, must be considered as a person of the other Contracting Party.

Article 10

The provisions of this Agreement, after the entry into force of this Agreement, apply to investments that were made before the date of signing the Agreement.

Article 11

Either Contracting Party may invite the other Contracting Party to consult on any issue regarding the interpretation or application of this Agreement. The other Party should pay attention to the proposal and ensure that such consultations are possible.

Article 12

1. Any dispute between the Contracting Parties concerning the interpretation or application of this Agreement, which cannot be resolved within a reasonable period of time through diplomatic negotiations, shall, unless otherwise agreed by the Parties, be referred to an Arbitration Court consisting of three members at the request of either Party. Each Contracting Party must appoint one arbitrator, and thus the two arbitrators appointed must jointly appoint a third arbitrator who is not a national of either Contracting Party as its chairman.

2. If one of the Contracting Parties is unable to appoint its own arbitrator and has not done so within two months of the other Contracting Party's proposal to make the appointment, the latter may invite the President of the International Court of Justice to make the necessary appointment.

3. If two arbitrators are unable to reach an agreement on the choice of a third arbitrator two months after their appointment, either Contracting Party may invite the President of the International Court of Justice to make the necessary appointment.

4. If, in the cases provided for in paragraphs 2 and 3 of this article, the President of the International Court of Justice encounters obstacles in the exercise of this function or he is a national of either Contracting Party, the Vice-President must be invited for the necessary appointment. If the Vice-President encounters obstacles in the exercise of this function or is a national of one of the Contracting Parties, the most senior member of the International Court of Justice who is not a national of either Party should be invited to make the necessary appointments.

5. The arbitration court must make decisions based on respect for the law. Before making a court decision, at any stage of the process, the Contracting Parties can be invited to resolve the dispute amicably. The above provisions should not prevent the fair settlement of the dispute with the consent of the Contracting Parties.

6. If the Contracting Parties decide otherwise, the court must determine its own procedure.

7. The Arbitration court shall make a decision by a majority vote. Such a decision must be final and binding on the Contracting Parties.

Article 13

With respect to the Kingdom of the Netherlands, this Agreement shall apply to the European part of the Kingdom, the Netherlands Antilles and the Islands of Aruba, unless otherwise provided in paragraph 1 of article 14.

Article 14

1. This Agreement shall enter into force on the first day of the second month following the date of written notification through diplomatic channels by the Contracting Parties of the completion of the necessary domestic procedures and shall be valid for fifteen (15) years.

2. If, at least 6 months before the expiration date of this Agreement, either Contracting Party does not notify the other Contracting Party in writing of its withdrawal from this Agreement, its validity is automatically extended for ten (10) years, while preserving the right of each Contracting Party to withdraw from this Agreement in accordance with the above procedure.

3. With respect to investments made prior to the date of termination of this Agreement, the provisions of all preceding articles of this Agreement shall remain in force for an additional period of 15 years from that date.

4. In accordance with paragraph 2 of this article, the Kingdom of the Netherlands, upon written notification from the Republic of Kazakhstan, has the right to terminate the application of this Agreement separately in certain parts of the Kingdom. In witness whereof, the undersigned representatives, duly authorized, have signed this Agreement. Done in duplicate in The Hague on November 27, 2002, in Kazakh, Dutch, Russian and English, all four texts being authentic. In case of disagreement in the interpretation of the provisions of this Agreement, the Contracting Parties will be guided by the English text.

For the Republic For the Kingdom Kazakhstan Netherlands

I hereby certify the accuracy of this copy from the original of the Agreement on the Promotion and Mutual Protection of Investments between the Republic of Kazakhstan and the Kingdom of the Netherlands dated November 27, 2002.

Advisor to the International Law Department of the Ministry of Foreign Affairs of the Republic of Kazakhstan

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

President

Republic of Kazakhstan

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