On the ratification of the Agreement on the Promotion and Protection of Investments between the Government of the Republic of Kazakhstan and the Government of the United Kingdom of Great Britain and Northern Ireland

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On the ratification of the Agreement on the Promotion and Protection of Investments between the Government of the Republic of Kazakhstan and the Government of the United Kingdom of Great Britain and Northern Ireland

The Law of the Republic of Kazakhstan dated November 22, 1996 N 44-I

To ratify the Agreement on the Promotion and Protection of Investments between the Government of the Republic of Kazakhstan and the Government of the United Kingdom of Great Britain and Northern Ireland, signed in Almaty on November 23, 1995.

President of the Republic of Kazakhstan

 INVESTMENT Promotion and Protection AGREEMENT between the Government of the Republic of Kazakhstan and the Government of the United Kingdom of Great Britain and Northern Ireland

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - Entered into force on January 9, 1997)

The Government of the Republic of Kazakhstan and the Government of the United Kingdom of Great Britain and Northern Ireland, Wishing to create favorable conditions for increasing investments made by citizens and companies of one State in the territory of another State; Recognizing that the promotion and mutual protection of such investments, carried out in accordance with an international treaty, will contribute to the development of the initiative of individual enterprises and increase the well-being of both States; agreed as follows:  

ARTICLE 1 Definitions For the purposes of implementing this Agreement: a) the term "investment" means any type of asset and in particular, but not exclusively, includes: 1. movable and immovable property and any other property rights, such as mortgages, rights to seize the debtor's property, liens and guarantees; 2. shares, securities, debt obligations of any company, as well as any other form of participation in the company; 3. monetary obligations or any other obligations under the contract that have financial value; 4. intellectual property rights, goodwill, technological processes and know-how; 5. benefits provided to the enterprise in accordance with the law or contract, including benefits for the search, development, extraction or exploitation of natural resources. A change in the form of investment of assets does not affect their nature as investments, and the term "investment" includes all types of investments made before or after the effective date of this Agreement.; a) the term "income" means the amounts received as a result of investments and, in particular, although not exclusively, includes profits, interest, capital gains, dividends, royalties and remuneration; b) the term "citizens" means: 1. in relation to the Republic of Kazakhstan: individuals with the status of citizens Of the Republic of Kazakhstan in accordance with the legislation in force on the territory of the Republic of Kazakhstan; 2. in relation to the United Kingdom: individuals who have the status of citizens of the United Kingdom in accordance with the current legislation of the United Kingdom; c) the term "companies" means; 1. In relation to the Republic of Kazakhstan: corporations, companies, associations, partnerships or other organizations, regardless of their legal form or form of ownership, established in accordance with the laws of the Republic of Kazakhstan and being legal entities in accordance with these laws; 2. In relation to the United Kingdom: corporations, firms, and associations established or incorporated in accordance with the applicable laws of the United Kingdom or in any territory to which this Agreement applies in accordance with the provisions of Article 12; d) the term "territory" means: 1. In relation to the Republic of Kazakhstan: the State territory of the Republic of Kazakhstan, including exclusive economic zones, the continental shelf and the subsoil over which the Republic of Kazakhstan exercises its sovereign rights and jurisdiction in accordance with international law. 2. In relation to the United Kingdom: Great Britain and Northern Ireland, including the territorial sea and any other maritime territory located along the territorial sea of the United Kingdom, which is considered or may be considered such in the future in accordance with the national legislation of the United Kingdom and in accordance with international law, in whose territory the United Kingdom may exercise rights in respect of the seabed and its subsoil, as well as natural resources, as well as any territory, which is covered by this Agreement in accordance with the provisions of Article 12.  

ARTICLE 2 Promotion and protection of investments 1. Each Contracting Party shall encourage and create favorable conditions for citizens or companies of the other Contracting Party to invest capital in its territory and, in accordance with its right to exercise the powers granted by its legislation, accept such capital. 2. Investments of citizens or companies of each Contracting Party are always provided with fair and equal treatment, as well as full protection and security in the territory of the other Contracting Party. Neither Contracting Party shall in any way apply discriminatory or unjustified measures to control, preserve, use, dispose of or own investments of citizens or companies of the other Contracting Party on its territory. Each Contracting Party must comply with any obligations it may have with respect to investments by citizens or companies of the other Contracting Party.  

ARTICLE 3 Provisions on national and most-favored-nation treatment 1. None of the Contracting Parties in its territory shall provide investments or incomes of citizens or companies of the other Contracting Party with a regime less favorable than that which it provides investments or incomes to citizens or companies of any third State. 2. None of the Contracting Parties in its territory should provide citizens or companies of the other Contracting Party with a regime less favorable than that which it provides to its own citizens or companies with respect to the management, preservation, use, possession or disposal of its own investments. 3. In order to avoid misunderstandings, this Agreement confirms that the treatment provided in accordance with the above paragraphs 1 and 2 comply with the provisions of Articles 1-11 of this Agreement.  

ARTICLE 4 Compensation of losses 1. Citizens or companies of one Contracting Party whose investments in the territory of the other Contracting Party have suffered losses as a result of war or other armed conflict, revolution, emergency, insurrection, rebellion or mass disorder in the territory of the latter Contracting Party must be provided by the latter Contracting Party with a regime regarding restitution, compensation, compensation or any other settlement, not including less favorable than that one, which is provided by the latter Contracting Party to its own citizens or companies of any third country. Final payments must be freely transferable. 2. Without prejudice to the provisions of paragraph 1 of this Article, citizens and companies of one Contracting Party who have suffered losses as a result of the situations listed in this paragraph in the territory of the other Contracting Party as a result of: a) the requisition of their property by force or authorities, or b) the destruction of their property by force or authorities that were not caused by military action or if the requirements of the situation did not dictate, restitution or adequate compensation should be provided. Final payments must be freely transferable.

 ARTICLE 5 Expropriation 1. Investments of citizens or companies of either Contracting Party shall not be nationalized, expropriated or subjected to measures equivalent to nationalization or expropriation (hereinafter referred to as "expropriation") in the territory of the other Contracting Party, except in cases where this is done in the public interest related to the domestic needs of that Party, on a discriminatory basis and in accordance with accurate, adequate an ARTICLE 5 Expropriation 1. Investments of citizens or companies of either Contracting Party shall not be nationalized, expropriated or subjected to measures equivalent to nationalization or expropriation (hereinafter referred to as "expropriation") in the territory of the other Contracting Party, except in cases where this is done in the public interest related to the domestic needs of that Party, on a discriminatory basis and in accordance with accurate, adequate and effective compensation. Such compensation is calculated in accordance with the initial value of the expropriated investments, determined immediately before the expropriation or before the date of notification of the expropriation, includes interest in accordance with the usual commercial rate, in accordance with the date of payment, is carried out without delay, is effectively realizable and freely convertible. A citizen or company subjected to expropriation has the right, in accordance with the legislation of the expropriating Contracting Party, to have its own case accurately assessed by legal or independent authorities of that party and to evaluate investments in accordance with the principles set out in this paragraph. 2. In cases where any Contracting Party expropriates the assets of any company established or established in accordance with applicable law in any part of its own territory, and in which citizens or companies of the other Contracting Party n cases where any Contracting Party expropriates the assets of any company established or established in accordance with applicable law in any part of its own territory, and in which citizens or companies of the other Contracting Party own shares. The Contracting Party shall ensure that the provision of paragraph 1 of this Article is applied to the extent necessary in order to ensure the guarantee of correct, adequate and effective compensation in respect of their investments to those citizens and companies of the other Contracting Party who own such shares.

 ARTICLE 6 Repatriation of investments and income Each Contracting Party guarantees unlimited transfer of investments and income to citizens and companies of the other Contracting Party in respect of investments. Transfers must be made without delay in such convertible currencies in which the capital was originally invested, or in any other convertible currencies agreed upon between the inv ARTICLE 6 Repatriation of investments and income Each Contracting Party guarantees unlimited transfer of investments and income to citizens and companies of the other Contracting Party in respect of investments. Transfers must be made without delay in such convertible currencies in which the capital was originally invested, or in any other convertible currencies agreed upon between the investor and the interested Contracting Party, until otTransfers must be made without delay in such convertible currencies in which the capitalas originally invested, oin any other convertible currencies agreed upon between the investor and the interested Contracting Party, until other agreements are reached, the investor's funds are transferred in accordance with the exchange rates applicable on the day of the transfer in accordance with with the current rules of currency regulation.  

ARTICLE 7 Exceptions The provisions of this agreement regarding the granting of treatment no less favorable than that granted to citizens or companies of any of the Contracting Parties or to any third State should not be formulated in such a way as to oblige any of the Contracting Parties to grant citizens or companies of the other Contracting Party the benefits of any regime, preferences or privileges as a result of: a) any existing ora) any existing or future Customs Union or similar international agreement to which any of the Contracting Parties is or may become a party; b) any international agreement or treaty relating wholly or mainly to taxation, or any domestic legislation relating wholly or mainly to taxation.  

ARTICLE 8 Settlement of disputes between the investor and the receiving Party 1. Disputes between citizens or companies of one Contracting Party and the other Contracting Party in respect of the latter's obligations under this agreement in relation to investments ARTICLE 8 Settlement of disputes between the investor and the receiving Party 1. Disputes between citizens or companies of one Contracting Part e other Contracting Party in respect of the latter's obligations under this agreement in relation to investments that have not been settled on a friendly basis must be submitted to the international arbitration body three months after the written notification of claims, if the concerned citizen or company wishes to do so. 2. In cases where a dispute is submitted to international arbitration bodies, a citizen or company, as well as an interested Contracting Party, have the right to apply to the following bodies for dispute settlement: a) The International Center for Settlement of Investment Disputes (referring to the provisions, where appropriate, of the Convention on Settlement of Investment Disputes between States and Nationals of Other States, opened for signature in Washington on March 18, 1965, as well as to the provisions of the Supplementary Agreement on the Management of Reconciliation Processes, arbitration and investigative procedures); b) The Arbitration Court of the International Chamber of Commerce; c) the International Arbitration Court or a specially appointed arbitration court in accordance with the rules of arbitration of UNCITRAL (UN Commission on International Trade Law). If, after a period of three months from the date of written notification of claims, no agreement has been reached in accordance with any of the above alternative procedures, the dispute, in accordancIf, after a period of three months from the date of written notification of claims, no agreement has been reached in accordance with any of the above alternative procedures, the dispute, in accordance with a written application from the citizen or company concerned, is submitted to arbitration in accordance with the applicable UNCITRAL arbitration rules. The parties to the dispute have the right to agree in writing to modify these Rules.

 ARTICLE 9 Disputes between the Contracting Parties 1. Disputes between the Contracting Parties concerning the interpretation or application of this Agreement should, if possible, be settled through diplomatic channels. 2. If the dispute between the Contracting Parties cannot be resolved in this way, it may be referred to an arbitration court upon a written request from either Contracting Party. 3. Such an arbitration court should be appointed for each individual case as follows. Within two months from the date of receipt of the application, each Contracting Party must appoint one member of the court. These two members must then select a third-country national, who will be appointed President of the Court after approval by both Contracting Parties. The Chairman is appointed within two months after the date of appointment of these two members. 4. If the necessary appointments have not been made during the period referred to in paragraph 3 of this article, either Contracting Party has the right, in the absence of any other agreement, to invite the President of the International Court of Justice to make any necessary appointments. If the President is a national of any of the Contracting Parties or impedes the performance of this function, then a member of the International Court of Justice who holds the next highest position and is not a citizen of any of the Contracting Parties is invited to make the necessary appointments. 5. The Arbitration Court shall make its decisions by a majority vote. Such decisions are binding on both Contracting Parties. The Court determines its own procedures independently.

ARTICLE 1O Subrogation 1. If one Contracting Party or an Agency authorized by it (the "first Contracting Party") makes a loss compensation payment in respect of any investments in the territory of the other Contracting Party (the "second Contracting Party"), the second Contracting Party recognizes: a) the assignment to the first Contracting Party in accordance with the law or legally executed transactions, the transfer of all the rights and claims of the Party who suffered losses; b) that the first Contracting Party is authorized to exercise such rights and to enforce claims through subrogation and to the same extent as the aggrieved party. 2. The first Contracting Party shall be provided in all cases with the same treatment in respect of: (a) the rights and claims acquired by it through the appointment, and (b) any payments received as a result of the exercise of such rights and claims, as the Party that suffered losses was ordered to receive through this agreement in respect of the relevant investments and related income. 3. Any payments received in non-convertible currencies by the first Contracting Party, in accordance with the acquired rights and claims, must be freely provided to the first Contracting Party in order to cover any expenses incurred in the territory of the second Contracting Party.

 ARTICLE 11 Application of other rules If the provisions of the laws of either Contracting Party or obligations under international law currently existing or subsequently adopted between the Contracting Parties in an addendum to this Agreement contain rules, regardless of whether they are general or specific, prescribing a more favorable treatment for investments of citizens or companies of the other Contracting Party than that which is provided in accordance with this agreement, such rules to the extent, to which extent they are more favorable prevail over this agreement.

ARTICLE 12 Territorial distribution At the time of entry into force of this Agreement, or at any time after entry into force, the provisions of this agreement may be extended to such Territories for whose international relations the Government of the United Kingdom is responsible, by agreement between the Contracting Parties in the form of an exchange of notes.

ARTICLE 13 Entry into force Each Contracting Party shall notify the other Party in writing of the completion of the constitutional formalities necessary in its territory for entry into force on the date of receipt of the last of the two notifications.  

ARTICLE 14 Duration and expiration dates This agreement is valid for a period of ten years. Thereafter, it shall remain in force after the expiration of twelve months from the date of written notification by either Contracting Party to the other Party of the termination of this agreement, its provisions shall continue to apply to such investments for a period of twenty years after the date of termination and without prejudice to the application of the rules of universal international law.

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

Done in duplicate in London on this day, November 23, 1995, in Kazakh and English, both texts are equally authentic.

For the Government For the Government of the Republic of Kazakhstan Of the United Kingdom Great Britain and Northern Ireland

President

Republic of Kazakhstan

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