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

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Law of the Republic of Kazakhstan dated 2.07.96 N 17-I

To ratify the Agreement on Mutual Promotion and Protection of Investments between the Government of the Republic of Kazakhstan and the Government of the Islamic Republic of Iran, signed in Almaty on January 16, 1996.

President of the Republic of Kazakhstan

Application

Agreement on Mutual Promotion and Protection of Investments between the Government of the Republic of Kazakhstan and the Government of the Islamic Republic of Iran

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on April 3, 1999)

 The preamble The Government of the Republic of Kazakhstan and the Government of the Islamic Republic of Iran, hereinafter referred to as the "Contracting Parties", Wishing to strengthen and expand economic cooperation between the two Contracting Parties, Intending to create and maintain favorable conditions for investments by investors of one of the Contracting Parties in the territory of the other Contracting Party, Recognizing the need to promote and protect the investments of investors of one Contracting Party in the territory of the other Contracting Party, Have agreed on the following:

 Article 1 Definitions For the purposes of this Agreement: 1. The term "Investment" means any type of property or asset listed below that is invested by investors of one Contracting Party in the territory of the other Contracting Party: a) movable and immovable property, as well as rights related to ownership; b) shares or any type of participation in companies, as well as rights related to them; c) rights to money or to any other actions having economic value; d) industrial and intellectual property rights, such as patents, industrial designs or models, trade or service marks, trade names, know-how and goodwill; e) rights granted in accordance with the law, contract or in connection with the decision of the authority in accordance with the legislation for exploration, production and the use of natural resources, as well as other rights of enterprises; f) reinvestment of income. 2. The term "investor" in relation to any Contracting Party means: a) an individual who, in accordance with the legislation of another Contracting Party, is considered its citizen; b) legal entities established in accordance with the legislation of this Contracting Party, having its location and carrying out its actual activities in the territory of the same Contracting Party; who invest in the territory of the other Contracting Party. of the other Contracting Party. 3. The term "income" means: funds received as a result of investments or related to them, in cash or in kind, including profits, dividends, remuneration for enterprise management, maintenance and any other legitimate income. 4. The term "territory" means: with respect to both Contracting Parties: territories under the jurisdiction of the Contracting Parties, and in which they exercise their delegated rights, and also include, respectively, their maritime territories.

 Article 2 Investment promotion 1. Each Contracting Party encourages and creates favorable conditions for its citizens to invest in the territory of the other Contracting Party. 2. Each Contracting Party shall encourage and create favorable conditions for citizens of the other Contracting Party to invest in its territory.

 Article 3 Admission of investments 1. Each Contracting Party accepts investments of investors of the other Contracting Party in its territory in accordance with its legislation and regulations. 2. If any Contracting Party accepts investments in its territory, it shall provide all necessary permits for the appropriate implementation of such investments.

 Article 4 Investment protection 1. Investments of investors of one of the Contracting Parties made within the territory of the other Contracting Party, in accordance with the legislation and regulatory documents of the latter, receive full legislative protection and fair treatment in the territory of the other Contracting Party no less favorable than that provided to investors of any third State in a comparable situation. 2. If one of the Contracting Parties grants special privileges to investors of any third State on the basis of an agreement on the establishment of a free trade zone, customs union, common market or any other similar regional organization or on the basis of an agreement on the avoidance of double taxation, it will not be obliged to grant such privileges to investors of the other Contracting Party.

 Article 5 More favorable conditions 1. Notwithstanding the conditions specified in this Agreement, more favorable conditions that have been or may be agreed by either Contracting Party with an investor of the other Contracting Party are also acceptable. 2. If the legislation of one Contracting Party or the existing circumstances that have arisen between the Contracting Parties in accordance with international law contain additional adjustments that generally or in detail provide for a more favorable treatment in relation to investments made by investors of the second Contracting Party than provided for in this Agreement, then such adjustments, to the extent that where they are more beneficial, they will have priority over this Agreement.

Article 6 Expropriation and compensation 1. Investments of investors of one of the Contracting Parties should not be expropriated, nationalized or subjected directly or indirectly to measures of a similar nature by the other Contracting Party, except for state needs, on a non-discriminatory basis, until timely, effective and fair compensation is paid and in accordance with legislative procedures. 2. Compensation for the expropriation of investments must be equivalent to the value of the investment immediately before the expropriation is completed or it becomes known. 3. In the event of a delay in payment of compensation, the investor and the receiving Party shall negotiate and agree on the amount of financial compensation for the overdue period from the date of payment of compensation to the investor until the date of payment in accordance with international practice.  

Article 7 Compensation of losses Investors of each Contracting Party whose investments have been damaged due to war, or any other armed conflict, revolution, state of emergency or uprising, or other similar events in the territory of the other Contracting Party shall be provided with treatment by the other Contracting Party no less favorable than that provided to their own investors or investors of any other Contracting Party. a third country, and which will be more favorable in terms of compensation, restitution, compensation for such losses.

 Article 8 Repatriation and transfer 1. Each Contracting Party guarantees to carry out in good faith all transfers related to investments, which must be made freely and without undue delay in its territory or abroad in accordance with the procedures defined by the legislation of the Contracting Parties. Such transfers include: (a) income; (b) proceeds from the sale or liquidation of any part of the accepted investments; (c) compensation in accordance with articles 6 and 7; d) payments under loan agreements, as well as compensation in connection with intellectual and industrial property rights, payments under management transfer agreements, technical and maintenance agreements; e) salaries, earnings or any other types of remuneration received by citizens of one of the Contracting Parties who have received a special work permit related to investments in the territory of the other Contracting Party; f) payments arising from disputes related to investments. 2. Transfers must be made on time in a convertible currency and at the official exchange rate in effect on the day of transfer.

Article 9 Subrogation 1. If the investments of an investor of one of the Contracting Parties are insured against non-commercial claims in accordance with the system established by the legislation of the insurance company of that Contracting Party, any subrogation of the policyholder resulting from the terms of the insurance agreement must be recognized by the other Contracting Party. 2. Such policyholder is not entitled to exercise any other rights except those that will be granted to him. 3. Disputes between one of the Contracting Parties and such policyholder should be regulated in accordance with the provisions of Article 11 of this Agreement.

Article 10 Compliance with obligations Each Contracting Party must constantly ensure compliance with the obligations it has assumed with respect to investments by investors of the other Contracting Party.

Article 11 Disputes between one of the Contracting Parties Parties and investor 1. In the event of any dispute between a Contracting Party and one or more investors regarding investments, the Contracting Party and the investor(s) should first try to resolve the matter through consultations or negotiations. 2. If the Contracting Party and the designated investor(s) cannot reach an agreement within 6 months after the date of written notification of dispute settlement negotiations by one of the Parties to the dispute, the dispute, at the request of either Contracting Party, in accordance with the laws and regulations, or investors, must be submitted to an Arbitration Court consisting of three members. Each of the Contracting Parties and the investor(s) appoint one arbitrator, and these two arbitrators must appoint a chairman. 3. Any Contracting Party or investor(s) that has initiated the arbitration procedure shall appoint its own arbitrator in the request for arbitration. If the Contracting Party or the investor(s) does not appoint its own arbitrator within 30 days of receiving the request for arbitration, the said arbitrator must be appointed, at the request of the Contracting Party or the investor(s), as a possible option, by the Secretary General of the Permanent Court of Arbitration. 4. If two arbitrators cannot reach an agreement within 60 days of the appointment of the second arbitrator, at the choice of the chairman, the latter must be appointed at the request of each Contracting Party or investor(s) by the Secretary General of the Permanent Court of Arbitration. 5. The Chairman of the arbitration court must be a representative of a State having diplomatic relations with both Contracting Parties at the time of appointment. 6. The arbitration procedure must be conducted in accordance with the provisions of Uncitral. 7. The place of arbitration is Paris. 8. The court's decisions are final and binding on the Contracting Party and the investor(s).

Article 12 Settlement of disputes between the Contracting Parties 1. In the event of any disputes between the Contracting Parties concerning the interpretation or application of this Agreement, the Contracting Parties should first try to resolve them through consultations or negotiations. 2. If the Contracting Parties are unable to reach an agreement within 12 months after written notification of negotiations by one of the parties to the dispute, the dispute must be referred.... at the request of any Contracting Party, in accordance with its laws and regulations, to an arbitration court consisting of three persons. Each Contracting Party appoints one arbitrator, and these two arbitrators appoint the chairman, who must be a national of a third State having diplomatic relations with both Contracting Parties at the time of appointment. 3. The Contracting Party that initiated the arbitration proceedings shall appoint its own arbitrator in the application for arbitration. If the other Contracting Party does not appoint its own arbitrator within 30 days of receiving the request for arbitration, the arbitrator must be appointed in accordance with the request of the Contracting Party that initiated the arbitration procedure to the President of the International Court of Justice. 4. If the two arbitrators are unable to reach an agreement within 60 days of the appointment of the second arbitrator regarding the selection of a chairman, the chairman must be appointed by the President of the International Court of Justice at the request of either Contracting Party. 5. If, in the cases specified in paragraphs 3 and 4 of this Article, the President of the International Court of Justice is unable to perform the specified function or if he is a national of either Contracting Party, the appointment must be made by the Vice-President of the International Court of Justice, and if the Vice-President is unable to perform the above function, or he also If he is a citizen of either Contracting Party, then the appointment must be made by one of the oldest members of the International Court of Justice who is not a citizen of either Contracting Party. 6. The Court, in accordance with the provisions approved by both Contracting Parties, determines its procedure and the place of arbitration. 7. Each Contracting Party shall bear the expenses of its member of the Court or his representation in arbitration investigations; the expenses of the Chairman and other expenses shall be borne by both Contracting Parties in equal parts. However, the Court may, by its own decision, order the payment of various shares of expenses by both Contracting Parties. The court determines its own procedure. 8. The court's decisions are final and binding on the Contracting Parties.

Article 13 Entry into force This Agreement will enter into force and will be binding from the date of receipt by one of the Contracting Parties of the last instrument of ratification of the other Contracting Party. Article 14 Amendments The text of this Agreement may be amended only after receiving a written agreement from the Contracting Parties. Such amendments shall enter into force only after completion of all procedures specified in A Article 13 Entry into force This Agreement will enter into force and will be binding from the date of receipt by one of the Contracting Parties of the last instrument of ratification of the other Contracting Party. Article 14 Amendments The text of this Agreement may be amended only after receiving a written agreement from the Contracting Parties. Such amendments shall enter into force only after completion of all procedures specified in Article 13 of this Agreement.

Article 15 Duration and Termination 1. This Agreement shall remain in force for a period of 10 years and may remain in force until terminated in accordance with paragraph 2 of this article. 2. Any Contracting Party has the right to provide one year's written notification to the other Contracting Party ole 15 Duration and Termination 1. This Agreement shall remain in force for a period of 10 years and may remain in force until terminated in accordance wparagraph 2 of this article. 2. Any Contracting Party has the right to provide one year's written notification to the other Contracting Party on the reduction of this Agreement at the end of the initial summer period or at any other time after the end of this year. 3. With respect to investments made or received prior to the termination of this agreement, the prct to investments made or received prior to the termination of this agreement, the provisions of all other articles of this agreement shall remain in force for an additional period of 10 years from the date of termination of this agreement.

In witness whereof, the undersigned, officially authorized by their Governments, have signed this agreement.

Committed in _____________ "__" ______ 199_ G. in Kazakh, Persian and English, all texts are equally identical. In case of disagreement on the interpretation of the text of this agreement, the English t Committed in _____________ "__" ______ 199_ G. in Kazakh, Persian and English, all texts are equally identical. In case of disagreement on the interpretation of the text of this agreement, the English text will prevail.

For the Government For the Government of the Republic of Kazakhstan of the Islamic Republic of Iran

 Protocol on signing the Agreement on Mutual Promotion and Protection of Investments between the Government of the Republic of Kazakhstan and By the Government of the Islamic Republic of Iran

The Contracting Parties have agreed to adopt the following provisions, which are considered an integral part of this Agreement: With respect to the Islamic Republic of Iran, the term "investments" mentioned in Articles 1-1 and 3-1, as well as in all other Articles of this Agreement, refers exclusively to such investments that are accepted and registered in the territory of the Islamic Republic of Iran in accordance with the Law "On Attracting and Protecting Foreign Investments in Iran" and regulations adopted by in accordance with this law, or laws and acts, adopted on the basis of the aforementioned Law. The acceptance and registration of the investment(s) of investors of the Republic of Kazakhstan in the territory of the Islamic Republic of Iran must be certified by a "Certificate of Acceptance" - a special document provided by the Ministry of Economic Relations and Finance, the Organization for Investment, Economic and Technic

President

Republic of Kazakhstan

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