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

Home / RLA / On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the Promotion and Mutual Protection of Investments

The Law of the Republic of Kazakhstan dated December 11, 1998 No. 314

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the Promotion and Mutual Protection of Investments, signed in Moscow on July 6, 1998. President of the Republic of Kazakhstan  

Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the Promotion and Mutual Protection of Investments  

(Bulletin of International Treaties of the Republic of Kazakhstan, 2001, No. 1, Article 12) (Entered into force on February 11, 2000 - J. "Diplomatic Courier", special issue No. 2, September 2000, p. 182) The Government of the Republic of Kazakhstan and the Government of the Russian Federation, hereinafter referred to as the Contracting Parties, developing the main provisions of the Agreement on Cooperation in the Field of Investment dated December 24, 1993, wishing to strengthen economic cooperation on a long-term basis for the mutual benefit of both Contracting Parties, intending to create and maintain favorable conditions for investors of one Contracting Party in the territory of the other Contracting Party. The Parties, recognizing, That the promotion and mutual protection of investments on the basis of this Agreement will contribute to the development of mutually beneficial trade, economic, scientific and technical cooperation, agreed as follows:

Article 1 Definitions For the purposes of this Agreement: 1. The term "investment" covers all types of property and intellectual property invested by an investor of one Contracting Party in the territory of the State of the other Contracting Party in accordance with its legislation, and in particular: a) movable and immovable property, as well as any other related property rights; b) monetary funds, as well as shares, deposits, and other forms of participation; (c) The right to claim funds invested to create economic values or services of economic value related to investments; (d) exclusive intellectual property rights (copyrights, rights to inventions, industrial designs, utility models, trademarks or service marks, trade names, technology, information having commercial value and know-how); e) the rights to conduct business provided on the basis of a law or contract. No change in the form in which property assets are invested or reinvested will affect their nature as investments, provided that such a change does not contradict the legislation of the Contracting Party in whose territory the investments are made. 2. The term "investor" means in relation to each of the Contracting Parties: a) any natural person who is a national of the State of the Contracting Party or permanently resides in the territory of the State of the Contracting Party and is authorized in accordance with its legislation to make investments in the territory of the State of the other Contracting Party; b) any legal entity established in accordance with the legislation in force in the territory of the State of this Contracting Party, provided that the legal entity is authorized in accordance with the legislation of its Contracting Party to make investments in the territory of the State of the other Contracting Party. 3. The term "income" means funds received as a result of investments, in accordance with paragraph 1 of this Article, and includes, in particular: profits, dividends, interest, royalties and commissions, as well as other remuneration. 4. The term "legislation of the Contracting Party" means the legislation of the State of the Contracting Party.

Article 2 Promotion and protection of investments 1. Each Contracting Party will encourage investors of the other Contracting Party to make investments in the territory of its State and allow such investments in accordance with its legislation. 2. Each Contracting Party guarantees, in accordance with its legislation, legal protection to investments of investors of the other Contracting Party.

Article 3 Investment regime 1. Each Contracting Party shall ensure in the territory of its State investments made by investors of the other Contracting Party and activities in connection with such investments a fair and equitable treatment, excluding the application of discriminatory measures that could hinder the management and management of investments. 2. The treatment referred to in paragraph 1 of this Article will be no less favorable than the treatment given to investments and activities in connection with investments of its own investors or investors of any third State. 3. Each Contracting Party reserves the right to identify industries and areas of activity in which the activities of foreign investors are excluded or restricted. 4. The most-favored-nation treatment provided in accordance with paragraph 2 of this Article will not apply to benefits that a Contracting Party provides or will provide in the future: a) in connection with participation in a free trade zone, customs or economic union; b) on the basis of an agreement on the avoidance of double taxation or other agreements on taxation issues.

Article 4 Essential personnel 1. A Contracting Party, in accordance with its legislation concerning the entry, stay and work of persons who are not its citizens, shall allow natural persons who are investors of the other Contracting Party and essential personnel (managerial, administrative, technical) employed by legal entities of this Contracting Party to enter and remain in its territory. States for the purpose of carrying out activities in connection with investments. 2. A Contracting Party, in accordance with its legislation, shall allow investors of the other Contracting Party who have made investments in the territory of the State of the first Contracting Party to hire in the territory of their State the main staff of their choice, regardless of nationality.

Article 5 Openness and accessibility of legislation Each Contracting Party, in order to facilitate the understanding of its legislation relating to or affecting investments made by investors of the other Contracting Party in the territory of its State, ensures the openness and accessibility of such legislation.

Article 6 Compensation for damages Investors of one Contracting Party whose investments have suffered damage in the territory of the State of the other Contracting Party as a result of war, civil unrest or other similar circumstances will be provided with treatment no less favorable than that which the latter Contracting Party provides to its own investors or investors of any third State in respect of any form of compensation for such damage.

Article 7 Expropriation 1. Investments of investors of one Contracting Party made in the territory of the State of the other Contracting Party will not be expropriated, nationalized or subjected to measures equal 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 procedure established by law, are not discriminatory and are accompanied by prompt, adequate and effective compensation. 2. Compensation must correspond to the market value of the expropriated investments immediately prior to the date when it officially became known about the actual implementation or impending expropriation. Compensation is paid without delay in freely convertible currency and is freely transferred from the territory of the State of one Contracting Party to the territory of the State of the other Contracting Party. Prior to the payment date, interest will be charged on the compensation amount at the LIV rate.

Article 8 Transfer of payments 1. Each Contracting Party guarantees investors of the other Contracting Party, after fulfilling all tax obligations, unhindered transfer abroad of payments in connection with investments, and in particular: a) amounts of initial investments and additional amounts to maintain and increase investments; b) income; c) amounts paid in repayment of loans recognized by both Contracting Parties in accordance with the Legislation of the Russian Federation. as an investment; d) the amounts received by the investor in connection with the partial or complete liquidation or sale of investments; e) compensation provided for in Article 7 of this Agreement; f) salaries and other remuneration received by investors and key personnel of the other Contracting Party who are allowed to work in connection with investments in the territory of the State of the first Contracting Party. 2. The transfer of payments will be carried out without delay in freely convertible currency at the exchange rate applicable on the date of transfer in accordance with the current currency regulations of the Contracting Party in whose territory the investments were made.

Article 9 Subrogation A Contracting Party or its authorized body, which will make a payment to an investor on the basis of a guarantee against non-commercial risks in connection with his investments in the territory of the State of the other Contracting Party, will be able to exercise the investor's rights in the same amount as the investor himself by way of subrogation. Such rights will be exercised in accordance with the legislation of the last Contracting Party.

Article 10 Settlement of disputes between a Contracting Party and an investor of the other Contracting Party 1. Any dispute between a Contracting Party and an investor of the other Contracting Party arising in connection with investments, including disputes concerning the amount, conditions or procedure for payment of compensation provided for in Article 7 of this Agreement, or the procedure for transferring payments provided for in Article 8 of this Agreement, will be the subject of a written notification accompanied by detailed comments provided by the investor will send it to the Contracting Party involved in the dispute. The parties to the dispute will seek to resolve such dispute through negotiations, if possible. 2. If the dispute is not resolved in this way within six months from the date of the written notification referred to in paragraph 1 of this Article, then, at the investor's choice, it will be referred to: a) the competent court or arbitration of the Contracting Party in whose territory the investments were made; b) the international arbitration court of one of the Trading chambers, with the consent of both parties to the dispute; c) the arbitral tribunal of the United Nations in accordance with the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). 3. The arbitration award will be final and binding on both parties to the dispute. Each Contracting Party undertakes to enforce such a decision in accordance with its legislation.

Article 11 Settlement of disputes between the Contracting Parties 1. Disputes between the Contracting Parties concerning the interpretation and application of this Agreement will be settled through negotiations. 2. If the dispute is not resolved in this way, it will be referred to an arbitration court at the request of either Contracting Party. 3. Such an arbitration court will be established for each specific case as follows. Each Contracting Party will appoint one member of the arbitral tribunal within two months from the date of receipt of the notification of the arbitration proceedings. These two members of the court will then elect a citizen of a third State, who, with the consent of both Contracting Parties, will be appointed Chairman of the court within one month from the date of appointment of the other two members of the court. 4. If the necessary appointments are not made within the time limits specified in paragraph 3 of this Article, either Contracting Party may, in the absence of any other agreement, request the President of the International Court of Justice to make the necessary appointments. If the President of the International Court of Justice is a national of one of the Contracting Parties or is unable to perform this function for other reasons, the Deputy President of the International Court of Justice will be invited to make the necessary appointments. If the Vice-President of the International Court of Justice is also a national of one of the Contracting Parties or is unable to perform this function for other reasons, the next member of the International Court of Justice who is not a national of either Contracting Party will be invited to make the necessary appointments. 5. The arbitration court makes its decision by a majority vote. Such a decision will be final and binding on both Contracting Parties. Each Contracting Party will bear the costs associated with the activities of its appointed member of the court and its representation in the arbitration proceedings; the costs associated with the activities of the Chairman of the Court, as well as other costs, the Contracting Parties will bear in equal shares. However, the Court may provide in its decision that one of the Contracting Parties will bear a greater share of the costs, and such a decision will be binding on both Contracting Parties. The arbitration court will determine the order of its work independently.

Article 12 Consultations The Contracting Parties, at the request of either of them, shall consult on matters relating to the interpretation or application of this Agreement.

Article 13 Application of the Agreement This Agreement applies to all investments made by investors of one Contracting Party in the territory of the State of the other Contracting Party starting from December 16, 1991. The provisions of this Agreement shall apply to disputes referred to in articles 10 and 11 of this Agreement from the date of its entry into force.

Article 14 Application of other rules 1. If the issue is regulated simultaneously by this Agreement and another international agreement to which both Contracting Parties are parties, nothing in this Agreement will prevent the Contracting Parties or any of their investors who invest in the territory of the State of the other Contracting Party from taking advantage of those rules that are more favorable in relation to their case. 2. If the treatment provided by one Contracting Party to investors of the other Contracting Party in accordance with the provisions of the contracts concluded between them is more favorable than that provided by this Agreement, then investors of the latter Contracting Party are provided with more favorable treatment.

Article 15 Entry into force and duration of the Agreement 1. This Agreement shall enter into force on the date of receipt of the last notification that the Contracting Parties have completed the internal procedures necessary for its entry into force. 2. This Agreement will be valid for fifteen years. At the end of this period, it will remain in force until the expiration of twelve months from the date of written notification by one of the Contracting Parties of its intention to terminate this Agreement. 3. This Agreement may be amended with the mutual written consent of the Contracting Parties. Any amendment will enter into force on the date of receipt of the last notification that the Contracting Parties have completed the internal procedures necessary for its entry into force. 4. In respect of investments made before the termination date

the operation of this Agreement and the provisions falling under it

Articles 1 to 14 of this Agreement will remain in force for a period of

the next fifteen years after that date.

Made in Moscow on July 6, 1998 in two original copies,

each is in Kazakh and Russian, with both texts having the same

the power.

In case of disagreement, the Russian text has

pre-emptive force.

President

Republic of Kazakhstan

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