On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Latvia on the Promotion and Mutual Protection of Investments

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Law of the Republic of Kazakhstan dated March 17, 2006 No. 132

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Latvia on the Promotion and Mutual Protection of Investments, signed in Astana on October 8, 2004.

President of the Republic of Kazakhstan

Agreement <*> between the Government of the Republic of Kazakhstan and the Government of the Republic of Latvia on the Promotion and Mutual Protection of Investments

(Entered into force on April 21, 2006 - Bulletin of International Treaties of the Republic of Kazakhstan, 2006, No. 6, Article 42)

The Government of the Republic of Kazakhstan and the Government of the Republic of Latvia, hereinafter referred to as the "Parties", recognizing the need to protect investments of investors of one Party in the territory of the other Party on a non-discriminatory basis; wishing to promote the expansion of economic cooperation in the field of investments of individuals and legal entities of one Party in the territory of the other Party; recognizing that the agreement on the treatment provided to such investments, It will stimulate the flow of private capital and the economic development of the States of the Parties.; Agreeing that a stable investment framework will contribute to maximizing the efficient use of economic resources and improve living standards, we agreed as follows:

Article 1 Definitions

For the purposes of this Agreement, 1. The term "investment" means any type of assets invested or invested by investors of one Party for business purposes in accordance with the national legislation of the State of the other Party in the territory of the latter, as well as the rights resulting therefrom, and in particular, but not exclusively, may include: (a) movable and immovable property and related property rights. rights such as leases, mortgages, property retention rights, and mortgages; (b) shares, shares, debentures and any other form of participation in the company; (c) monetary claims or any performance under a contract having economic value; (d) intellectual property rights, including copyrights, trademarks, patents, industrial designs and technical processes, know-how, trade secrets, trade names and goodwill; (e) business concessions that are granted in accordance with law or under contract, including concessions for the exploration, development, extraction or use of natural resources. A change in the form of investments made in accordance with the legislation of the State receiving investments in its territory does not prevent the application of the provisions of this Agreement in order to protect the interests of investors with respect to the rights they acquire in this regard. 2. The term "investor" means any natural or legal person who invests in the territory of the other Party: (a) in relation to the Republic of Kazakhstan: (i) "natural person" means a citizen of the Republic of Kazakhstan, or a person permanently residing in its territory, who is authorized in accordance with the legislation of the Republic of Kazakhstan to make investments; (ii) "legal entity" - a legal entity or organization that does not have the status of a legal entity, established or registered in accordance with the legislation of the Republic of Kazakhstan. (b) with respect to the Republic of Latvia: (i) "natural person" means a citizen and a non-citizen in accordance with the laws and regulations of the Republic of Latvia and in accordance with the Protocol to this Agreement regarding the definition of "non-citizen"; (ii) "legal entity" means an enterprise (company) or a public organization. an organization, association, institution registered or established in accordance with the laws and regulations of the Republic of Latvia. 3. The term "income" means funds received as a result of an investment, including profits, interest, capital gains, dividends, royalties, royalties and other payments. 4. The term "territory" means the territory of the State of the Party, including the land territory, internal and territorial waters and the airspace above them, as well as maritime zones outside the territorial sea, including the seabed and subsoil, over which the State of the Party exercises sovereign rights or jurisdiction in accordance with national legislation and international law for the purpose of exploration and exploitation of natural resources. resources of such areas.

Article 2 Promotion and protection of investments

1. Each Party encourages and creates favorable conditions in its territory for investments by investors of the other Party and allows such investments in accordance with the national legislation of its State. 2. Each Party in its territory provides investments and income from investments of investors of the other Party with fair and equitable treatment, as well as full and permanent protection and security. 3. No Party in its territory shall, by unreasonable, discriminatory or arbitrary measures, impair the increase, management, preservation, use, possession and sale or other disposal of investments by investors of the other Party.

Article 3 Legal regime

1. Each Party will provide investors of the other Party and their investments and investment income with treatment no less favorable than that it provides to national investors or third-country investors and their investments with respect to expansion, management, maintenance, use, ownership and sale or other disposal of investments. 2. Each Party shall provide investors of the other Party and their investments and income from investments with the treatment that is the most favorable of those specified in paragraph 1 of this Article.

Article 4 Release

The provisions of this Agreement shall not be interpreted as obliging a Party to provide investors of the other Party and their investments and investment income with existing or future benefits of any regime, preference or privilege resulting from: (a) membership in a free trade area, customs union, monetary union, common market or any international agreement to which it is a party. the State of any Party and leading to such unions or similar organizations; (b) any international agreement or national legislation of the State of the Party relating wholly or primarily to taxation.

Article 5 Expropriation and compensation

1. Any Party shall not expropriate or nationalize, directly or indirectly, the investments of an investor of the other Party or take any such measures (hereinafter referred to as expropriation), except for those taken: (a) for public purposes; (b) in a non-discriminatory manner; (c) in accordance with due process of law; (d) with the payment of prompt, adequate and effective compensation in accordance with paragraphs 2 and 3 of this Article. 2. Compensation must: (a) be paid without delay. In the event of a delay, any loss related to the exchange rate resulting from this delay will be borne by the receiving Party; (b) equal to the fair market value of the expropriated investment immediately before the expropriation occurred. The fair market value should not reflect any change in value due to the fact that the expropriation became publicly known earlier; (c) be fully realizable and freely transferable; (d) include interest at the commercial rate established on a market basis for the currency of payment from the date of expropriation to the date of actual payment. 3. An investor of any Party who claims to have suffered from the expropriation of the other Party should have the right to an urgent review of his case, including an assessment of his investments and compensation in accordance with the provisions of this Article, by a judicial authority or other competent and independent body of the latter Party.

Article 6 Compensation of losses

1. An investor of a Party who has suffered losses in connection with his investments in the territory of the other Party as a result of war or other armed conflict, national emergency, revolution, uprising, civil unrest or any other similar event in the territory of the latter Party must be provided by the latter Party with respect to restitution, compensation, compensation or any other settlement, The regime is no less favorable than the one it provides to its investors or to investors from any third country., which one is the most favorable for the investor. 2. Any investor of a Party who, in any of the cases referred to in paragraph 1, suffers losses as a result of: (a) the confiscation of his investment or part of it by the forces or authorities of the other Party, or (b) the destruction of the investment or part of it by the forces or authorities of the other Party, which was not required by the necessity of the situation, In any case, the latter Party has provided restitution or compensation, which in any case must be prompt, adequate and effective. In this case, compensation must be provided in accordance with paragraphs 2 and 3 of Article 5.

Article 7 Transfers

1. Each Party, in accordance with the national legislation of its State, shall ensure to the investors of the other Party the transfer to and from its territory of their investments and transferable payments related to investments. Such payments should include, in particular, but not exclusively: (a) initial capital and additional amounts to maintain or increase the contribution; (b) income; (c) proceeds from the full or partial sale or liquidation of investments; (d) payments made under the contract, including loans; (e) compensation paid in accordance with Articles 5 and 6; (f) payments arising from the dispute; (g) salaries and other remuneration for personnel employed abroad and working in connection with investments. 2. Each Party will ensure that the transfer referred to in paragraph 1 of this Article is made in freely convertible currency at the market exchange rate of the Party in whose territory the investment was made effective on the day of the transfer. 3. In the absence of an exchange market for foreign currency, the exchange rate to be applied should be the most recent exchange rate for converting the currency into Special Drawing Rights. 4. Without prejudice to paragraphs 1, 2 and 3 of this Article, any Party may restrict the transfer by fair, non-discriminatory and fair application of the laws of its State relating to: (a) bankruptcy, insolvency or protection of creditors' rights; (b) issuance, trading or transactions in securities, futures, options, or derivatives; (c) violations; (d) financial reporting or accounting of transfers when it is necessary to facilitate the implementation of the law or financial regulatory authorities; (e) enforcement of orders or court decisions in judicial or administrative proceedings.

Article 8 Subrogation

1. If a Party or a designated authority makes a payment to its investors in accordance with a guarantee provided for investments in the territory of the other Party, the latter Party must recognize: (a) the assignment, according to law or in accordance with a legal transaction in that State, of any right or claim of the investor to the previous Party or its designated authority, as well as(b) that the previous Party or its designated authority has the right, by virtue of subrogation, to exercise the rights and assert the claims of such an investor and must assume obligations with respect to investments. 2. The rights or claims transferred by virtue of subrogation must not exceed the primary rights or claims of the investor.

Article 9 Disputes between an investor and a Party

1. Any disputes between the investor and the Party regarding the interpretation or application of this Agreement should, if possible, be resolved through consultations through diplomatic channels. 2. If the dispute has not been resolved within three (3) months from the date on which it was submitted in writing, the dispute may, at the investor's option, be submitted: (a) to the competent court of the Party in whose territory the investment was made; (b) to arbitration at the International Center for Settlement of Investment Disputes (hereinafter - ICSID), established in accordance with the Convention on Settlement of Investment Disputes between States and Natural or Legal Persons of Other States, opened for signature in Washington on March 18, 1965 (hereinafter referred to as the "Center"), provided that and the disputing Party and the Investor's Party are parties to this Convention; or (c) to arbitration by the ICSID Subsidiary Body, provided that the disputing Party or the Investor's Party is a party to this Convention; or (d) to any specially created arbitration court, which, unless otherwise agreed by the parties, must be established in accordance with the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). 3. None of the Parties to the dispute may raise an objection at any stage of the arbitration process or the execution of the award due to the fact that the investor, who is a party to the dispute, has received compensation covering part or all of his losses on the basis of insurance. 4. The arbitration court established in accordance with this Article must make decisions based on the national legislation of the State of the Party that is a party to the dispute, the provisions of this Agreement, as well as applicable international law. 5. The arbitral award must be final and binding on both parties to the dispute. Both Sides must ensure the enforcement of the decision.

Article 10 Settlement of disputes between the Parties

1. Disputes between the Parties regarding the interpretation or application of this Agreement, if possible, are resolved through negotiations and consultations. 2. If the dispute cannot be resolved in this way within three (3) months, it will be submitted to the Arbitral Tribunal at the request of either Party in accordance with the provisions of this Article. 3. An arbitration court should be established for each individual case as follows. Within two (2) months of receiving the request for arbitration, each Party must appoint one member of the court. These two members must select a citizen of a third Country, who, with the approval of the two Parties, must be appointed Chairman of the Court (hereinafter referred to as the "Chairman"). The Chairman must be appointed within two (2) months from the date of appointment of the other two members. 4. If the necessary appointments have not been made during the periods specified in paragraph 3 of this Article, a request for appointments may be sent to the President of the International Court of Justice. If it turns out that he is a citizen of one of the Parties, or if something else prevents him from performing this function, the Vice President should be invited to make the appointments. If the Vice-President also happens to be a national of one of the Parties or is otherwise prevented from performing this function, the next oldest member of the International Court of Justice, who is not a national of one of the Parties, will be invited to make the appointment. 5. The Arbitration Court must make a decision by a majority vote. Such a decision is mandatory. Each Party must bear the costs of paying for the services of its arbitrator and his representation at the arbitration hearings. The Chairman's fees and other expenses must be borne in equal parts by both Parties. The Arbitral Tribunal may, however, decide that one of the two Parties will bear most of the costs, and this decision is binding on both Parties. The Arbitration Court must determine its own procedure.

Article 11 Application of other rules and special obligations

1. When the issue is regulated simultaneously by this Agreement and another international agreement to which the States of the Parties are parties, nothing in this Agreement shall prevent any Party or any of the investors who own investments in the territory of the other Party from taking advantage of the provisions that are most favorable in his case. 2. If the treatment provided by one Party to the investments of investors of the other Party in accordance with the national legislation of its State or the conditions defined in other Treaties is more favorable than the treatment provided under this Agreement, a more favorable treatment will be provided.

Article 12 Applicability of this Agreement

This Agreement should apply to investments made in the territory of one of the Parties, in accordance with the national legislation of its state, by investors of the other Party before and after the entry into force of this Agreement, but should not apply to any dispute that has arisen regarding investments or any claim that was resolved before the entry into force of this Agreement.

Article 13 General exceptions

1. Nothing in this Agreement shall be interpreted as restricting a Party from taking any measures necessary to protect the security interests of its State during a war or armed conflict. 2. Provided that such measures are not applied in an arbitrary or illegal manner or do not constitute a disguised restriction on international trade or investment, nothing in this Agreement shall be interpreted as restricting a Party from taking or maintaining measures, including environmental protection measures: (a) necessary to maintain public order; (b) necessary to protect the life or health of humans, animals or plants. 3. The provisions of this Article shall not apply to Article 5, Article 6 or paragraph 1 (e) of Article 7 of this Agreement.

Article 14 Transparency

1. Each Party shall, without delay, issue or otherwise make publicly available its laws, regulations, procedural rules and administrative decisions, judicial decisions of general application, as well as international agreements that may affect investments by investors of the other Party in the territory of the previous Party. 2. Nothing in this Agreement shall require a Party to provide or allow access to any confidential or proprietary information, including information regarding individual investors or investments, the disclosure of which would interfere with compliance with laws or contradict its laws protecting confidentiality, or harm the legitimate commercial interests of individual investors.

Article 15 Consultations

The Parties must, at the request of either Party, hold consultations on reviewing the implementation of this Agreement and exploring any issue that may arise from this Agreement. Such consultations should be conducted between the competent authorities of the Parties at the place and at the time agreed through appropriate channels.

Article 16 Entry into force and termination

1. By mutual agreement of the Parties, amendments and additions may be made to this Agreement, which are formalized in separate protocols that are integral parts of this Agreement. 2. This Agreement, as well as amendments and additions made in accordance with paragraph 1 of this Article, shall enter into force on the date of the last written notification by the Parties that the internal procedures necessary for its entry into force have been completed. 3. This Agreement is concluded for a period of ten years and after that its validity is extended for the same period until one of the Parties receives a written notification from the other Party of its intention to terminate the Agreement after 12 months. 4. With respect to investments made prior to the termination of this Agreement, the provisions of articles 1-15 of this Agreement shall apply for a period of ten years after the date of termination of the Agreement.

Done in Astana on October 8, 2004, in two originals, each in the Kazakh, Latvian and Russian languages, all texts being equally authentic. In case of different interpretation of the provisions of this Agreement, the text in Russian is used as the basis.

For the Government For the Government of the Republic of Kazakhstan Of the Republic of Latvia

PROTOCOL to the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Latvia on the Promotion and Mutual Protection of Investments

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on April 21, 2006)

When concluding the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Latvia on the Promotion and Mutual Protection of Investments, the undersigned representatives of the Parties agreed on the following provisions, which form an integral part of the Agreement: The Government of the Republic of Kazakhstan takes note of the statement of the Government of the Republic of Latvia that the term "non-citizen" in relation to subparagraph (i) of subparagraph (b) of paragraph 2 of Article 1 means persons, who, in accordance with the Law of the Republic of Latvia "On Former Citizens of the USSR", do not have citizenship of Latvia or any other state and are not stateless persons, but are entitled to a non-citizen passport issued by the Republic of Latvia.

For the Government For the Government of the Republic of Kazakhstan Of the Republic of Latvia

President

Republic of Kazakhstan

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