On the ratification of the Agreement on the Promotion and Mutual Protection of Investments in the Member States of the Eurasian Economic Community

Home / RLA / On the ratification of the Agreement on the Promotion and Mutual Protection of Investments in the Member States of the Eurasian Economic Community

The Law of the Republic of Kazakhstan dated July 10, 2009 No. 173-IV.

To ratify the Agreement on the Promotion and Mutual Protection of Investments in the Member States of the Eurasian Economic Community, signed in Moscow on December 12, 2008.

THE AGREEMENT on the Promotion and Mutual Protection of Investments in the Member States of the Eurasian Economic Community Entered into force on January 11, 2016 - Bulletin of International Treaties of the Republic of Kazakhstan 2016, No. 1, art. 6

The Governments of the member States of the Eurasian Economic Community, hereinafter referred to as the Parties,

Guided by the Treaty on the Establishment of the Eurasian Economic Community of October 10, 2000,

realizing the goals and objectives of the Eurasian Economic Community,

Intending to create and maintain favorable conditions for investors of the States of the Parties making investments in the territories of these States,

Recognizing that the promotion and mutual protection of investments on the basis of this Agreement will contribute to the development of integration processes, mutually beneficial trade, economic, scientific and technical cooperation between the States of the Parties,

Striving to promote the economic growth of the States of the Parties,

agreed on the following:

Article 1 Basic concepts

The terms used in this Agreement mean the following:

a) "investor" - in relation to the State of each of the Parties:

any natural person who is a citizen of the State of one Party, making investments in the territory of the State of the other Party in accordance with the legislation of the latter.;

any legal entity established (established) and registered in the territory of the State of one Party, making investments in the territory of the state of the other Party in accordance with the legislation of the latter;

b) "investments" - tangible and intangible assets invested by an investor of the state of one Party in objects of entrepreneurial activity on the territory of the state of the other Party in accordance with the legislation of the latter, including:

cash (money), securities, other property;

business rights granted on the basis of the legislation of the States of the Parties or under an agreement, including, in particular, the rights to explore, develop, extract and exploit natural resources;

property and other rights that have a monetary value.

A change in the form in which investments are invested or reinvested does not affect their qualification as investments, provided that such a change does not contradict the legislation of the recipient State.;

c) "investment related activities" - ownership, use and (or) disposal of investments;

d) "income" means funds received as a result of investments, in particular, profits, dividends, interest, royalties, commissions and other remuneration;

e) "recipient State" - the State of the Party in whose territory investments are made by investors of the states of other Parties;

f) "legislation" - laws and other regulatory legal acts of the State of the Party;

g) "territory" means the territory of the State of the Party, as well as its exclusive economic zone and continental shelf, in respect of which it exercises sovereign rights and jurisdiction in accordance with international law and domestic legislation.

Article 2 Admission and protection of investments

1. Each Party creates favorable conditions for the implementation of investments in the territory of its State by investors of the States of other Parties and allows such investments in accordance with the legislation of its State.

2. Each Party guarantees and ensures, in accordance with the legislation of its State, protection on its territory of investments of investors from the States of other Parties.

Article 3 Openness of legislation

Each Party ensures the openness and accessibility of the legislation of its state regulating investment activities.

Article 4 Investment regime

1. Each Party shall ensure in the territory of its State a fair and equitable treatment of investments and activities in connection with investments carried out by investors of the States of the other Parties.

2. The treatment referred to in paragraph 1 of this Article should be no less favourable than that provided by that Party with respect to investments and activities in connection with such investments by national investors or investors of any other State, including those not party to this Agreement, and should be provided at the investor's choice, depending on which of these regimes, in his opinion, is the most favorable?

3. Each Party reserves the right, in accordance with the legislation of its State, to restrict the activities of foreign investors, as well as to apply and introduce other exemptions from the national regime specified in paragraph 2 of this article.

4. The provisions of paragraphs 1 and 2 of this Article with respect to the most-favored-nation treatment should not be interpreted as obliging a Party to extend to investments and activities in connection with such investments by investors of other Parties the advantages of any regime, preferences or privileges that are granted or may be granted in the future by this Party.:

in connection with its participation in the free trade area, the customs union, the monetary union, the common market and any similar economic integration entities or any international agreements leading to the creation of such unions or entities;

based on agreements for the avoidance of double taxation or other tax arrangements.

5. Without prejudice to the provisions of Articles 5, 6 and 9 of this Agreement, each of the Parties has the right not to grant more favorable treatment to investments of investors of the States of the other Parties and their activities in connection with such investments than that which it provides in accordance with the obligations assumed under the Agreement on the Establishment of the World Trade Organization of April 15, 1994. including obligations under the General Agreement on Trade in Services (GATS), as well as in accordance with any multilateral agreement, which can be achieved with the participation of the Parties and which will relate to the investment regime.

Without prejudice to the provisions of paragraph 1 of Article 14 of this Agreement, the provision of the first paragraph of this paragraph shall enter into force for each of the Parties from the date of its acceptance of obligations under the Agreement establishing the World Trade Organization, including obligations under the GATS, or from the date of entry into force of the multilateral agreement referred to in paragraph one of this paragraph.

Article 5 Compensation for damage

Investors have the right to compensation for damage caused to their investments and income as a result of civil unrest, military operations, revolution, rebellion, the imposition of a state of emergency or other similar circumstances on the territory of the recipient State. At the same time, such investors are provided with treatment no less favorable than that provided by a Party to the recipient State to national investors or investors of any other State, including those not party to this Agreement, with respect to measures taken by that Party in connection with compensation for such damage.

Article 6 Guarantees of investors' rights in case of expropriation

1. Investments of investors of the State of one Party made in the territory of the State of the other Party and the income of such investors may not be subjected directly or indirectly to expropriation, nationalization, or other measures equivalent in consequences to expropriation or nationalization (hereinafter referred to as expropriation), except in cases where such measures are taken in the public interest in accordance with the legislation of the State-the recipient's order is non-discriminatory and is accompanied by the payment of prompt, adequate compensation.

2. The compensation specified in paragraph 1 of this article must correspond to the market value of the expropriated investments and the income of investors on the date immediately preceding the date of their actual expropriation, or the date when it became generally known about the impending expropriation.

3. The compensation referred to in paragraph 1 of this Article shall be paid without delay within the time period provided for by the legislation of the recipient State, but no later than three months from the date of expropriation, in freely convertible currency and, in accordance with Article 7 of this Agreement, freely transferred abroad from the territory of the recipient State.

In case of delay in payment of compensation, from the date when compensation is due in accordance with the first paragraph of this paragraph, until the date of actual payment of compensation, interest calculated at the rate of the national interbank market on loans actually provided in US dollars for up to 6 months or in accordance with the procedure determined by agreement between the investor and By the party of the recipient State.

Article 7 Use of income, money transfers and payments

1. A party of the recipient state guarantees investors of the states of other Parties after they have fulfilled all tax and other obligations stipulated by the legislation of the recipient state.:

the right to use and dispose of the income received as a result of investments for any purposes not prohibited by the legislation of the recipient State;

the right to freely transfer funds (money) and payments related to investments to any country at the discretion of the investor, in particular:

income;

funds paid to repay loans and credits recognized by the Parties as investments;

funds received by the investor in connection with the partial or complete liquidation of a commercial organization, or the sale of investments;

funds received by the investor as compensation for damages in accordance with Article 5 of this Agreement and compensation provided for in Article 6 of this Agreement;

salaries and other remuneration received by investors and citizens of other Parties who are allowed to work in connection with investments in the territory of the recipient State.;

royalties and royalties arising from intellectual property rights paid by investors.

2. The transfer of funds (money) and the making of payments specified in paragraph 1 of this Article shall take place without undue delay in the currency in which the investments were originally made, or in any other freely convertible currency. The conversion of such funds and payments is carried out at the exchange rate applicable in the territory of the recipient State on the date of the transfer of funds (money) and payments, in compliance with the requirements of the currency legislation of the recipient State.

Article 8 Transfer of investor's rights

A party or its authorized body that has made a payment to an investor of its state on the basis of a guarantee of protection from non-commercial risks in connection with such an investor's investments in the territory of the recipient State will be able to exercise the investor's rights in the same amount as the investor himself by way of subrogation. Such rights are exercised in accordance with the legislation of the recipient State.

Article 9 Settlement of disputes between a Party and an investor

1. Disputes between a Party of the recipient State and an investor of the other Party's State arising in connection with the investor's investments in the territory of the recipient State, including disputes concerning the amount, conditions or procedure for payment of amounts received as compensation for damages in accordance with Article 5 of this Agreement and compensation provided for in Article 6 of this Agreement. Agreements, or the procedure for making payments and transferring funds (money) provided for in Article 7 of this Agreement, are resolved, if possible, through negotiations.

2. If the dispute cannot be resolved through negotiations within six months from the date of written notification by any of the parties to the dispute about its settlement through negotiations, it may be submitted for consideration at the investor's choice.:

a) the court of the recipient State competent to consider the relevant disputes;

b) international commercial arbitration at the Chamber of Commerce of any State, agreed upon by the parties to the dispute;

c) an "ad hoc" arbitration court, which, unless the parties to the dispute agree otherwise, must be established and operate in accordance with the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL);

d) the International Center for the Settlement of Investment Disputes, established in accordance with the Convention on the Settlement of Investment Disputes between States and Natural or Legal Persons of Other States of March 18, 1965, to resolve the dispute in accordance with the provisions of this Convention (provided that it has entered into force for both States of the parties to the dispute) or in accordance with with Additional Rules of the International Center for Settlement of Investment Disputes (in case the Convention has not entered into force for both or one of the States of the parties to the dispute).

3. Any arbitral award on a dispute considered in accordance with sub-paragraphs (b), (c) and (d) of paragraph 2 of this article shall be final and binding on the parties to the dispute. Each Party undertakes to ensure the enforcement of such a decision in accordance with the legislation of its State.

Article 10 Settlement of disputes between the Parties

1. Disputes between the Parties related to the interpretation and/or application of the provisions of this Agreement shall be resolved, if possible, through consultations and negotiations between the Parties concerned.

2. If the dispute is not resolved through consultations and negotiations within six months from the date of the official written request for their holding sent by one of the interested Parties to the other interested Party, then, in the absence of any other agreement between the interested Parties on the method of dispute resolution, any of these Parties may apply to the Court of the Eurasian Economic Community for dispute resolution.

3. The Court of the Eurasian Economic Community shall rule on the dispute in accordance with its rules.

Article 11 Consultations

The Parties, at the request of either of them, shall consult on issues related to the interpretation and/or application of this Agreement.

Article 12 Application of the Agreement

This Agreement applies to all investments made by investors of the State of one Party in the territory of the State of the other Party starting from January 1, 1992.

This Agreement does not apply to disputes and/or claims related to investments made by investors of the State of one Party in the territory of the State of the other Party, the grounds for which took place or which were settled and/or satisfied before the entry into force of this Agreement.

Article 13 Amendment of the Agreement

By agreement of the Parties, this Agreement may be amended in writing, which are formalized in separate protocols.

Article 14 Entry into force and duration of the Agreement

1. This Agreement shall enter into force on the date of receipt by the depositary of the last written notification that the signatory Parties have completed the internal procedures necessary for the entry into force of this Agreement.

The depositary of this Agreement is the Integration Committee of the Eurasian Economic Community.

2. Either Party may withdraw from this Agreement by sending a written notification to the depositary. This Agreement shall terminate with respect to this Party upon the expiration of six months from the date of receipt by the depositary of such notification.

3. With respect to investments made before the date of termination of this Agreement and subject to it, the provisions of this Agreement will remain in force for a further ten years after that date.

The provision of the first paragraph of this paragraph shall also apply in the event of termination of this Agreement in respect of one or more Parties.

Done in Moscow on December 12, 2008, in one original copy in the Russian language. The original copy is kept in the Integration Committee of the Eurasian Economic Community, which will send a certified copy to each Signatory to this Agreement.

For the Government

Republic of Belarus

Republic of Kazakhstan

For the Government

Of the Kyrgyz Republic

Of the Russian Federation

For the Government

Republic of Tajikistan

President

Republic of Kazakhstan

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