On approval of the agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of India on promotion and mutual protection of investments

Home / RLA / On approval of the agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of India on promotion and mutual protection of investments

Law of the Republic of Kazakhstan dated May 8, 1998 No. 226

To approve the agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of India on the promotion and mutual protection of investments, signed in Delhi on December 9, 1996.

President Of The Republic Of Kazakhstan

Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of India on promotion and mutual protection of investments

(Entered into force on July 26, 2001 - Bulletin of international treaties of the Republic of Kazakhstan, 2002, No. 2, Article 26)

The Government of the Republic of Kazakhstan and the Government of the Republic of India, referred to below as the "contracting parties", agreed on the following issues, with the intention of strengthening and expanding economic cooperation between the two contracting parties, recognizing that the promotion and mutual protection of investments in accordance with the agreement will promote the economic development of the Contracting Parties:

Article 1 Definition

For the purposes of this Agreement: (a). "Investments" means any type of fixed and acquired assets, including those that have changed in accordance with the internal state laws of the contracting party in whose territory the investments are being made, in particular, but not exclusively: (I) movable and immovable property, as well as other rights, such as collateral, the right to seize property for debt or guarantee; (II) shares in the company and its shares and other; (III) monetary claims or other claims that have a financial meaning based on the results of activities under the treaty; (IV) the rights of reasonable property, "goodwill", technical procedures and instructions in accordance with the relevant laws of the known Contracting Party; (V) concessions specified in the law or in accordance with the agreement, including a concession for the exploration and production of oil and other minerals; (b) an "investor" means any individual and legal entity making investments in the territory of the other contracting party. (i) "individual" means: a person who has citizenship or citizenship of the Republic of Kazakhstan, in the Republic of Kazakhstan, or a person residing there in accordance with its laws; in the Republic of India, a person who has citizenship status in accordance with the laws applicable in India. (II) "legal entity" means any legal entity in relation to the two Contracting Parties - companies, corporations, firms, associations, legal entities or an enterprise that has a constituent right or is based in accordance with its applicable laws in any part of that contracting party. (C)" investment income " - capital gains income, such as dividends, royalties, or commissions, refers to the monetary amounts received as a result of the investment. (d) "territory": means the state territory of the Contracting Party, covering its territorial waters and airspace above it, and other maritime areas in which the contracting party exercises sovereignty, sovereign rights or exclusive authority in accordance with its applicable laws and international law, including the United Nations Convention on the law of the Sea of 1982. (E) may be allowed in accordance with the laws and other regulatory acts of the contracting party in whose territory the investment was made, changes in the types of investments do not significantly change their nature.

Article 2 Scope of the agreement

This agreement applies to all investments made by investors of any contracting party in the territory of another Contracting Party, regardless of whether it was carried out before or after the entry into force of this Agreement, which is accepted as in accordance with its laws and regulations.

Article 3 Promotion and protection of investments

(1) each Contracting Party encourages and creates favorable conditions for investors of the other Contracting Party to make investments in its territory and permits such investments in accordance with its laws and policies. (2) investments and income from investments by investors of each contracting party are granted fair and equal freedom in the territory of the other Contracting Party.

Article 4 national order and order of maximum convenience

(1) each Contracting Party grants no less freedom than the freedom granted to investments of investors of another Contracting Party, investments of its own investors or investments of investors of any third state.  (2) in addition, each Contracting Party grants investors of the other Contracting Party, including income related to their investments, freedom that is considered no less acceptable than that granted to investors of any third state. (3) the provisions of Paragraphs 1 and 2 may not be interpreted in such a way as to oblige one Contracting Party to extend the privilege of any procedure to investors of the other Contracting Party: (A) from any customs union in life and in the future, or from such an international agreement to which it is a party: or (b)

Article 5 Expropriation

(1) investments by investors of any contracting party shall not be subject to nationalization, expropriation or action of measures, the results of which will be nationalization and expropriation (hereinafter referred to as expropriation) in the territory of another contracting party, except when it is a matter of public interest in accordance with the non - discriminatory law and equitable compensation. Such compensation should be equated to the amount of the actual value of the expropriated investment, regardless of which of these events occurred earlier, just before the expropriation or before the disclosure of the fact of the upcoming expropriation, should include interest at a fair and equal rate before the payment period, should be paid without delay without grounds, its payment should be practically feasible and the amount of payment should be freely exchangeable. (2) an investor whose interest has been harmed has the right, in accordance with the laws of the contracting party conducting the expropriation, to review his or her situation, the value of his or her investments through the judicial and other authority of that party in accordance with the principles set out in this paragraph. The Contracting Party conducting the expropriation will take all measures to ensure that such a revision is carried out immediately. (3) in the event that a Contracting Party expropriates the assets of a company acting in any part of its territory, exercising the rights of a legal entity or established in accordance with the law, and in which it owns shares of investors of another contracting party, it shall ensure the application of the provisions of Paragraph (1) of this article to the limits necessary for the provision of fair and equal compensation for their investments to investors of another contracting party that owns these shares.

Article 6 compensation for damage

If investors of the contracting party have been harmed in the territory of another contracting party as a result of war or other armed conflict, a state of emergency declared in the state or civil malfeasance on the territory of the second contracting party, the second Contracting Party shall provide no less favorable conditions for restitution, compensation or other settlement of damage than the second contracting party has done to its own investors or investors of any third state. In this regard, payments must be freely transferred.

Article 7 return of investments and their income

Each Contracting Party authorizes the free transfer of all funds of investors of the other contracting party in connection with investments in its territory on a non-binding basis, without delay or discrimination, as the investor fulfills its obligations related to taxation. Such funds include: (a) capital and additional amounts of capital used to maintain and increase investments; (b) net operating income, which includes dividends and interest equal to the number of shares in their possession; (C) cover any loan, including interest on it in connection with the investment; (d) royalties and payment for services related to the investment; (E) the rationality of the sale of their shares; (f) the amount of rationality received by investors in the event of a sale or partial sale or liquidation; (g) may include the work; (2) none of the provisions of Paragraph (1) of this article shall, in accordance with Article 6 of this Agreement, contribute to the transfer of any compensation. 3.if there is no other agreement between the parties, the currency transfer shall be made in the currency of the initial investment or in any substitute currency in accordance with paragraph (1) of this article. Such transfer is made at the current market exchange rate on the day of the transfer.

Article 8 Subrogation

If one of the Contracting Parties or the body appointed by it guarantees compensation for non-commercial risks in respect of investments made by any of its investors in the territory of the contracting party and has made payments to such investors in respect of their claims in accordance with this Agreement, the other Contracting Party agrees that the first contracting party or the body appointed by it has the right to exercise rights in accordance with the power of the subrogation and make claims to these investors. Subrogated rights or claims must not exceed the initial rights or claims of such investors.

Article 9 settlement of disputes between investors and Contracting Parties

(1) any dispute between one Contracting Party and the other Contracting Party concerning the investments of the former shall be resolved in accordance with this agreement, as far as possible, by mutual transaction through negotiation between the parties involved in the dispute. (2) any such dispute, resolved by mutual agreement within a period of six months, shall, by agreement of both parties: (A) to be resolved in accordance with the laws of the Contracting Party authorizing the implementation of investments, to the Almighty judicial or administrative authorities of that Contracting Party; or (b) may be submitted to the United Nations Commission on international trade laws for an international conciliation procedure; (3) disputed matters may be submitted for arbitration if the parties do not agree to the dispute resolution procedure provided for in paragraph 2 of this article, or if the dispute is filed for Conciliation procedure and the conciliation procedure ends differently from the signing of a dispute resolution agreement. The arbitration procedure is as follows: (a) if both the contracting party of the investor and the other Contracting Party are considered members of the 1965 Convention on the settlement of disputes related to investments between states and citizens of other states, and the investor has agreed to submit the dispute to the International Centre for the settlement of disputes related to investments; or (b) if both parties to the dispute give such consent during the conciliation procedure, additional arbitration proceedings and the procedure for establishing and evaluating the facts; or (C) in the case of an arbitration court established in each individual case, one of the parties to the dispute shall, in accordance with the provisions of the United Nations arbitration proceedings on International Trade Laws of 1976, comply with the following amendments: (i) in accordance with Article 7 of the rules, the person making the appointment shall be The third arbitrator must not be a citizen of one of the Contracting Parties.  (ii) The Parties shall appoint their arbitrators within two months. (iii) the arbitration decision shall be made in accordance with the provisions of this article. (iv) The Arbitration Court confirms the justification of its decisions and gives explanations at the request of any party.

Article 10 settlement of disputes between the Contracting Parties

(1) disputes between the Contracting Parties regarding the interpretation or application of this Agreement shall be resolved, as far as possible, by negotiation. (2) if the dispute between the Contracting Parties has not been resolved in this way for six months after the occurrence of the disputed issue, it shall be submitted to the arbitration court at the request of one of the Contracting Parties. (3) in any individual case, such an arbitration court shall be appointed in the following manner. After receiving an application for arbitration proceedings, each of the Contracting Parties elects one member to the board within two months. These two members then select a citizen of the third state, who, with the approval of the two Contracting Parties, is appointed chairman of the court. The chairman is appointed within two months from the date of appointment of the other two members. (4) if the necessary appointments are not made during the period of time specified in paragraph (3) of this article, and there is no other agreement, any contracting party may invite the chairman of the International Court of justice to make such an appointment. If the chairman is a citizen of one of the Contracting Parties or cannot perform the above duties for other reasons, the deputy chairman is called to make the necessary appointments. If the deputy chairman is a citizen of one of the Contracting Parties, or he is also unable to fulfill the above task, then the next issue of the International Court of justice, who is not a citizen of one of the Contracting Parties, is convened to make the necessary appointments. (5) The Arbitration Court shall make its decision by a majority vote. Such decisions are binding on both Contracting Parties. Each Contracting Party bears the costs associated with the work of the member of the court to which it belongs and its powers in the arbitration court, while the other costs are borne by the two Contracting Parties in equal parts. However, the court may indicate by its decision that one of the two Contracting Parties will reimburse the majority of the costs, and such a decision will be binding on both Contracting Parties. The arbitration court establishes the procedure for work that suits it.

Article 11 arrival and residence of members of the collective

The contracting party, in accordance with its laws and legal norms in force regarding the residence of persons who are not members of it, authorizes individuals of the other Contracting Party and persons belonging to the legal entities of the other contracting party to enter and reside in its territory in order to engage in activities related to investments.

Article 12 applicable legal norms

(1) all investments, except as otherwise provided for in this Agreement, are governed by the laws applicable in the territory of the contracting party in which such investments are made. (2) regardless of the provision of Paragraph 1 of this article, the user does not prevent the Contracting Party from taking appropriate measures to protect the fundamental interests of its security or in cases where it is absolutely necessary in accordance with its laws, usually normal measures on a non-discriminatory basis.

Article 13 application of other norms

If the provisions of the law of one of the Contracting Parties or obligations in force in accordance with international law or to be established later between the Contracting Parties in addition to this agreement, regardless of their commonality or direct affiliation, create a more favorable situation on the part of investors of the other Contracting Party than as provided for in this agreement, such norms shall prevail over the provisions of this agreement with more favorable conditions.

Article 14 entry into force, validity period and termination of the validity period

(1) this Agreement shall be subject to ratification and shall enter into force on the day of exchange of certificates of ratification.  (2) this Agreement shall be valid for 10 (ten) years after its entry into force and shall remain in force until its termination in accordance with paragraph (6) of this article. (3) the provisions of this agreement apply to investments made since its entry into force on December 16, 1991. (4) regardless of the termination of the validity period of this agreement, it shall remain valid for the next period of ten years from the moment of termination of its validity period in respect of investments made or acquired prior to the termination of the validity period of this agreement. (5) this agreement may be amended at any time after its entry into force by mutual consent of the Contracting Parties in writing. (6) after the expiration of a period of nine months or more of the duration of the agreement, any of the Contracting Parties may notify the other contracting party in writing of its intention to terminate the agreement. The agreement is terminated within one year from the moment of receipt of written notification.  In confirmation of this, Representatives duly appointed by their governments for this purpose signed this agreement.  On December 9, 1996, two copies were made in Kazakh, Hindi, Russian and English, and all texts are equally valid.  In case of any divergence, the English text has priority power.

 Kazakhstan for the Government of the Republic of India

President

Republic of Kazakhstan

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