On the ratification of the Convention on the Protection of Investor's Rights

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The Law of the Republic of Kazakhstan dated December 30, 1999 No. 24

To ratify the Convention on the Protection of Investor's Rights, signed in Moscow on March 28, 1997.

President of the Republic of Kazakhstan

 Convention on the Protection of Investor's Rights

It is subject to ratification by the Signatories in accordance with their domestic procedures and enters into force on the 30th day after the date of deposit of the third instrument of ratification to the depositary. For the Parties that have ratified it later, the Convention enters into force on the 30th day after they deposit their instruments of ratification.

Signed: Republic of Azerbaijan, Republic of Armenia, Republic of Belarus, Georgia, Republic of Kazakhstan, Kyrgyz Republic, Republic of Moldova, Russian Federation, Republic of Tajikistan

Notifications have been submitted:

Republic of Moldova - deposited on September 3, 2002;

Russian Federation - deposited on December 31, 2004 (domestic procedures are in progress).

The instruments of ratification have been handed over:

Republic of Belarus - deposited on December 18, 1997; Republic of Tajikistan - deposited on January 13, 1998; Republic of Armenia - deposited on December 23, 1998; Republic of Kazakhstan - deposited on April 17, 2000; The Kyrgyz Republic was deposited on June 12, 2000.

The Convention entered into force on January 21, 1999

Entered into force for the States:

Republic of Belarus - January 21, 1999; Republic of Tajikistan - January 21, 1999; Republic of Armenia - January 21, 1999; Republic of Kazakhstan - May 16, 2000; Kyrgyz Republic - July 11, 2000; Republic of Moldova - October 2, 2002.

The States Parties to this Convention, hereinafter referred to as the Parties, considering effective protection of investor rights to be a necessary condition for the development of the economies of the Parties, facilitating the attraction of investments into the national economies of the Parties, guided by The Agreement on the Establishment of the Economic Union of September 24, 1993, in development of Agreement on Cooperation in the Field of Investment dated December 24, 1993, aiming to create a common investment space and a coordinated approach to issues related to attracting investments, We have agreed on the following:

 Part I. General provisions

 Article 1. Basic terms

For the purposes of this Convention, the following terms are used: investor - a state, a legal entity or an individual who invests his own, borrowed or borrowed funds in the form of investments; investments - financial and material assets invested by an investor in various objects of activity, as well as transferred property and intellectual property rights in order to generate profit (income) or achieve a social effect, if they are not withdrawn from turnover or are not limited in turnover in accordance with the national legislation of the Parties; the country of origin of an investment is the state in whose territory the investor is registered - a legal entity or of which the investor is a citizen - an individual; the recipient country is the state in whose territory the object of investment is located; property right is the right to own, use and dispose of property.

 Article 2. Scope of the Convention

This Convention defines the legal basis for the implementation of various types of investments registered in the territory of the Parties, and guarantees the rights of investors to make investments and receive income from them. The norms and rules defined by this Convention are applied when the subjects of legal relations of two or more States participate in the investment process. The regulation of issues related to the investor's activities and the protection of his rights is carried out by the authorized state bodies of the recipient country. The Interstate Economic Committee of the Economic Union (hereinafter - IEC) performs the functions of coordinating issues related to the operation of this Convention on the part of the bodies of the Commonwealth of Independent States.

 Article 3. Investors

Investors may be States, legal entities and individuals of both Parties and third countries, unless otherwise provided by the national legislation of the Parties.

 Article 4. Forms of investment

The investor has the right to make investments by any means not prohibited by the legislation of the recipient country. The Party, as the recipient country, has the right to conduct an expert examination of investment projects for compliance with environmental, antimonopoly and other requirements.

Article 5. The legal regime of investments and guarantees against legislative changes

The conditions for making investments, as well as the legal regime of investors' activities in connection with the investments made, cannot be less favorable than the conditions for making investments and the regime of activities related to them for legal entities and individuals of the recipient country, with the exception of exceptions that may be established by the national legislation of the recipient country. The Parties have the right to review the list of exemptions. In such cases, they inform the IEC about these changes. The Parties have the right to determine lists of priorities in relation to industries, types of activities and regions for which more preferential conditions for attracting investments are introduced. If, after the entry into force of this Convention, the Parties amend the legislative norms concerning investments that, in the opinion of one or more interested Parties, worsen the conditions and regime of investment activity, this issue may be submitted to the Economic Court of the Commonwealth of Independent States and/or other international courts or international arbitration courts. If the said courts make a decision confirming the fact of deterioration of the conditions and regime of investment activity, the said legislative norms are suspended from the moment of their adoption (that is, the conditions and regime remain as if these norms had not been adopted) and are resumed from the expiration of a five-year period from the date of the decision, provided that contrary to this Convention. This provision does not apply to changes in legislation related to defense, national security, protection of public order, the environment, public morals and health, taxation, as well as to the list of exemptions.

 Article 6. Lists of withdrawals and priorities of recipient countries

The list of exemptions contains the names of industries, enterprises, and organizations that, in accordance with the national legislation of the Parties, are not subject to privatization, corporatization, or other forms of denationalization of ownership. The list of priorities establishes industries, enterprises, organizations, types of activities and regions for which preferential investment conditions are introduced. The lists of exemptions and priorities are subject to publication in the official publications of the Parties and the IEC.

 Part II. State guarantees of investment protection

 Article 7. Legal regulation of investment activity

Relations related to the implementation of investments and the activities of investors in connection with them are regulated by this Convention, the national legislation of the Parties, as well as international treaties to which they are parties.

 Article 8. Legal protection of investments

Investments in the territory of the Parties are granted unconditional legal protection, which is provided by this Convention, the national legislation of the Parties, as well as international treaties to which they are parties.

Article 9. Guarantees of protection of investments from nationalization, requisition, from decisions and actions (inaction) of state bodies and officials infringing on the rights of the investor

Investments are not subject to nationalization and may not be subject to requisition, except in exceptional cases (natural disasters, accidents, epidemics, epizootics and other circumstances of an extraordinary nature) provided for by the national legislation of the Parties, when these measures are taken in the public interest provided for by the Basic Law (Constitution) of the recipient country. Nationalization or requisition cannot be carried out without paying adequate compensation to the investor. Decisions on the nationalization or requisition of investments are made in accordance with the procedure established by the national legislation of the recipient country. Decisions of state bodies on nationalization or requisition of investments may be appealed in accordance with the procedure established by the national legislation of the recipient country. The investor has the right to compensation for damage caused to him by decisions and actions (inaction) of state bodies or officials that contradict the legislation of the recipient country and the norms of international law.

 Article 10. Compensation for damage to the investor

Compensation for damage to the investor is paid in the currency in which the investment was made. The procedure for determining the amount of compensation and its payment is established by the national legislation of the recipient country. Compensation for damage in the case specified in part four of Article 9 of this Convention shall be carried out in accordance with the norms of the national legislation of the recipient country.

Article 11. The procedure for resolving disputes arising in connection with investments

Disputes concerning the implementation of investments under this Convention are considered by the courts or arbitration courts of the countries participating in the disputes, the Economic Court of the Commonwealth of Independent States and/or other international courts or international arbitration courts.

 Article 12. Guarantees for the use of income

After paying taxes and fees on income received in cash from previously made investments, in accordance with the national legislation of the recipient country participating in the Convention, the investor is guaranteed: the use of income in the currency of the country of origin of the investment and / or the currency of the recipient country for the purposes of investment and reinvestment, as well as for the purchase of goods in the recipient country; the use of income in the currency of the recipient country for the purchase of other currencies of the Parties in the domestic foreign exchange market of the recipient country; unhindered transfer of income to any country at the discretion of the investor. After paying taxes and fees on income received in kind from previously made investments, in accordance with the legislation of the recipient country participating in the Convention, the investor is guaranteed: the use of these incomes for investment and reinvestment purposes in the territory of the recipient country; export of goods outside the customs territory of the recipient country in accordance with the procedure established by the legislation of the recipient country, taking into account the provisions of this Convention and international treaties of the recipient country. The transfer of funds in accordance with the provisions of this Convention is carried out at the official exchange rate in effect on the date of transfer in the recipient country. The recipient country may restrict the application of legislation on the transfer of income from investments to the countries of origin of these investments or other countries in cases of bankruptcy, insolvency, as well as the protection of creditor rights.

 Article 13. Property and risk insurance

Insurance of property and risks of an enterprise with investments of the Parties is carried out in accordance with the legislation of the recipient country.

Part III. Acquisition of shares and other securities by an investor. Investor's participation in privatization

 Article 14. Purchase of shares and other securities

The investor has the right to purchase shares and other securities of business entities and other issuers, including government securities, in accordance with the legislation of the recipient country. Shares and other securities traded on the stock market of the recipient country may be purchased by an investor with payment in the currency of the recipient country or in another currency, unless otherwise provided by the legislation of the recipient country.

Article 15. Investor's participation in privatization and protection of his rights

An investor may participate in the privatization of state and municipal owned facilities on the terms and in accordance with the procedure determined by the legislation of the recipient country. The cancellation of the decision on the privatization of the facility, as well as a change in the procedure and method of privatization in the event that an investor participated in the privatization of the facility, as well as the termination of privatization transactions, may be carried out in court.

Article 16. Information support of the privatization process

The parties undertake to inform each other on the following issues during the privatization process: about the nature of privatization; about the course of privatization, including auctions, contests, the place and time of their holding, about privatized enterprises; about plans and schedules for auctions, contests; about the procedure for acquiring shares of privatized enterprises; about the sale of privatization objects; about the most significant objects offered for sale; about upcoming sales objects of privatization.

Article 17. Registration of ownership rights to privatized property

The acquisition of state and municipal property in the process of privatization is carried out on the basis of purchase and sale agreements concluded between the investor and the person performing the functions of the seller of the privatized property. Contracts for the purchase and sale of shares of privatized enterprises are subject to registration in accordance with the procedure determined by the legislation of the recipient country. A different procedure for the acquisition of state and municipal property in the process of privatization is not allowed.

Part IV. Acquisition by an investor of property rights to land, other natural resources and other property rights

 Article 18. Property rights to land and other natural resources

The acquisition by an investor of property rights to land, natural resources and real estate is carried out in accordance with the legislation of the recipient country.

Article 19. Concession agreements, production sharing agreements concluded with a foreign investor

The investor is granted the rights to use natural resources and carry out activities related to the state monopoly of the recipient country, as well as the rights of entrepreneurial activity related to the use of objects owned by the recipient country, in accordance with concession agreements, production sharing agreements concluded in accordance with the procedure established by the legislation of the recipient country..

 Article 20. Provision of property for rent

The leasing to the investor of property of citizens and legal entities of the recipient country, objects of state property of the recipient country, and the leasing by the investor of his property located on the territory of the recipient country, as well as the termination of such contractual relations, are carried out in accordance with the procedure and conditions established by the legislation of the recipient country.

Part V. Final provisions

Article 21. Relationship of the Convention with international treaties

The provisions of this Convention do not affect the provisions of other international treaties to which the Parties are Parties.

 Article 22. Bilateral agreements

This Convention may serve as a basis for the Parties to conclude bilateral agreements protecting investor rights. If necessary, individual provisions of the Convention may be specified in bilateral agreements.

 Article 23. Procedure for entry into force of the Convention

This Convention is subject to ratification by the Signatories in accordance with their domestic procedures and enters into force on the 30th day after the date of deposit of the third instrument of ratification with the depositary. For the Parties that have ratified it later, the Convention enters into force on the 30th day after they deposit their instruments of ratification with the depositary.

 Article 24. Duration of the Convention

This Convention is valid for 10 years from the date of its entry into force. After this period, the Convention is automatically extended each time for a new 10-year period, unless the Parties decide otherwise. For the purposes of resolving possible disputes and claims, including those of a material nature, the provisions of this Convention shall continue to apply to the withdrawing Party until all disputes are fully resolved.

 Article 25. Procedure for accession to the Convention

After its entry into force, other States may accede to this Convention with the consent of all Parties by submitting documents on such accession to the depositary. The accession shall be deemed to have entered into force after 30 days from the date of receipt by the depositary of the last notification of the Parties' consent to such accession.

Article 26. Procedure for withdrawal from the Convention

Each Party may withdraw from this Convention by sending a written notification to the depositary no later than 12 months prior to withdrawal.

 Article 27. Procedure for making amendments and additions to the Convention

Amendments and additions may be made to this Convention by mutual agreement of the Parties.

Article 28. Settlement of disputes related to the interpretation of the Convention

Disputes related to the interpretation of this Convention shall be resolved through consultations between the Parties or by applying to the Economic Court of the Commonwealth of Independent States. Done in Moscow on March 28, 1997, in one original copy in the Russian language. The original copy is kept at the Executive Secretariat of the Commonwealth of Independent States, which will send a certified copy to each signatory State of this Convention.

Special opinion of the Republic of Armenia on the Convention on the Protection of Investor's Rights

1. In article 10, at the end of the first sentence, add the words: "or in another currency, subject to the agreement of the Parties." 2. Article 11 should read as follows: "Within the framework of this Convention, disputes arising between the country of origin of investments and the recipient country shall be resolved in accordance with the legislation of the recipient country, unless a different procedure is provided for between the Parties under a bilateral investment protection agreement." 3. The first paragraph of Article 16 should be worded as follows: "When conducting privatization, the Parties shall exchange the following information," hereinafter referred to as the text.

I hereby certify that the attached text is an authentic copy of the Convention on the Protection of Investor's Rights, adopted at the meeting of the Council of Heads of State of the Commonwealth of Independent States, which was held on March 28, 1997 in Moscow. The original copy of the above-mentioned Convention is kept at the Executive Secretariat of the Commonwealth of Independent States.

Deputy Executive Secretary The Commonwealth of Independent States

President

Republic of Kazakhstan

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