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

Law of the Republic of Kazakhstan dated December 5, 1997 No. 198

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Azerbaijan on the Promotion and Mutual Protection of Investments, signed on September 16, 1996 in Baku.

President of the Republic of Kazakhstan

 AGREEMENT between the Government of the Republic of Kazakhstan and the Government of the Republic of Azerbaijan 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 30, 1998)

The Government of the Republic of Kazakhstan and the Government of the Republic of Azerbaijan, hereinafter referred to as the "Contracting Parties", 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, recognizing that the promotion and mutual protection of investments, in accordance with this Agreement, will stimulate business initiative in this area, agreed on the following:

 Article 1 Definition For the purposes of this Agreement: 1. The term "investment" will cover any type of assets invested in connection with the economic activities of investors of one Contracting Party in the territory of the other Contracting Party in accordance with the applicable legislation of the latter and will include, in particular, but not exclusively: a) movable and immovable property and any property rights, such as mortgage l  Article 1 Definition For the purposes of this Agreement: 1. The term "investment" will c type of assets invested in connection with the economic activities of investors of one Contracting Party in the territory of the other Contracting Party in accordance with the applicable legislation of the latter and will include, in particular, but not exclusively: a) movable and immovable property and any property rights, such as mortgage law, collateral the right; b) shares, securities, debt obligations, reinvested income, targeted bank and financial deposits related to investments; c) monetary claims or any other claims related to activities of financial importance; d) intellectual property rights, including copyrights, trademarks, patents, industrial designs, technological processes, know-how, trade secrets, brand names and goodwill related to the investment; (e) Reinvested income and payments of principal and interest on loan agreements; (f) Licenses and permits in accordance with legislation, including concessions for the exploration, extraction, development and exploitation of natural resources. 2. The term "investor" means: a) any natural person who has citizenship or permanent residence in any of the Contracting Parties in accordance with its laws; b) any legal ny legal entity established in accordance with the current legislation of one of the Contracting Parties and which has the right to make investments in the territory of the other Contracting Party. 3. The term "income" means the monetary amounts received as a result of investments and includes, in particular, but not exclusively, income, interest, capital gains, dividends, royalties and fees for services. 4. The term "territory" means: in relation to the Republic of Azerbaijan - the territory of the Republic of Azerbaijan, including the internal waters of the Republic of Azerbaijan, the sector of the Caspian Sea (lake) belonging to the Republic of Azerbaijan, the airspace over the Republic of Azerbaijan, as well as any other territory defined or to be defined in the future in accordance with international law and the national legislation of the Republic of Azerbaijan, within which the Republic of Azerbaijan exercises its sovereign rights inthe territory of the Republic of Azerbaijan, including the internal waters of the Republic of Azerbaijan, the sector of the Caspian Sea (lake) belonging to the Republic of Azerbaijan, the airspace over the Republic of Azerbaijan, as well as any other territory defined or to be defined in the future in accordance with international law and the national legislation of the Republic of Azerbaijan, within which the Republic of Azerbaijan exercises its sovereign rights in relation to subsurface, seabed, continental shelf and natural resources; in relation to the Rethe Republic of Kazakhstan - the state territory of the Republic of Kazakhstan, including the airspace, the seabed, free economic zones, the continental shelf, natural resources and subsoil over which the Republic of Kazakhstan exercises, in accordance with international law, its sovereign rights and jurisdiction. 5. Changing the form of an investment permitted in accordance with the legislation and other regulatory acts of the State of the Contracting Party in whose territory the investment was made does not change its nature as an investment.

 Article 2  Application of this Agreement The terms of this Agreement will apply to all investments made by investors of one Contracting Party in the territory of the other Contracting Party both before and after the entry into force of this Agreement.

Article 3 Promotion and protection of investments 1. Each Contracting Party will encourage and create favorable conditions Article 3 Promotion and protection of investments 1. Each Contracting Party will encourage and create favorable conditions for investors of the other Contracting Party to make investments in its territory and allow such investments in accordance with its laws and regulations. 2. Investments of investors of either Contracting Party enjoy fair and equitable treatment, full protection and security in the territory of the other Contracting Party.  

Article 4 National and most-favored-nation treatment 1. Each Contracting Party in its territory will provide investments of investors of the other Contracting Party with a regime that is fair and equal and no less favorable than that which it provides to investments of its own investors or investors of any third State. 2. Each Contracting Contracting Party in its territory will provide investments of investors of the other Contracting Party with a regime that is fair and equal and no less favorable than that which it provides to investments of its own investors or investors of any third State in relation to the management, support, use and disposal of its investments. 3. The provisions of paragraphs 1 and 2 of this Article shall not be interpreted to oblige one Contracting Party to extend to investors of the otThe provisions of paragraphs 1 and 2 of this Article shall not be interpreted to oblige one Contracting Party to extend to investors of the other Contracting Party the benefits of any regime, preferences or privileges that may be extended by the latter Contracting Party arising from: a) any customs union or free trade area, or similar international Agreements that affect an investment cooperation regime or other forms of regional cooperation to which any Contracting Party is or may become a party; b) any international agreement or arrangement that relates in whole or in part to taxation.

Article 5 Compensation for damages 1. Investors of one of the Contracting Parties, whose investments in the territory of the other Contracting Party have been damaged as a result of war or other armed conflict, state of emergency, civil clashes or similar circumstances, are provided with a regime no less favorable than that applied to their investors or investors of third countries, upon compensation for the damage they suffered as a result of the above circumstances. damage. These amounts are subject to free transfer abroad. 2. Without prejudice to the terms of paragraph 1 of this Article, investors of one Contracting Party who, during any of the events referred to in this paragraph, suffer losses in the territory of the other Contracting Party resulting from: a) the requisition of their property by its forces or authorities; b) the destruction of their property by its forces or authorities, which were not caused by military action or were not caused by the necessity of the situation, will be provided with fair and adequate compensation for losses incurred by investors during the requisition or as a result of the destruction of property. Payments that arise will be transferred in freely convertible currency without delay.  

 Article 6 Expropriation 1. Investments of investors of either Contracting Party will not be nationalized, expropriated, or subject to measures having an effect equivalent to nationalization or expropriation (hereinafter referred to as "expropriation") in the territory of the other Contracting Party, except in exceptional cases detrimental to the people and State interests of the Contracting Parties. Expropriation will be carried out in accordance with the laws of the Contracting Parties, on a non-discriminatory basis, and will be accompanied by conditions for the payment of immediate, adequate and effective compensation. Such compensation will be equal to the market price of the investment when the expropriation or threat of expropriation became publicly known, will include a percentage from the date of expropriation at the rate of LIV, will be paid in the currency in which the investment was made, or by agreement of the parties in any other currency acceptable to the investor, will be made without delay, will be such that effectively implemented and freely translated. 2. The aggrieved investor will have the right to an immediate review by the judicial authority of this Contracting Party of his case, and an assessment of his investments in accordance with the principles set out in this article. 3. The provision of paragraph 1 of this Article will also apply when a Contracting Party expropriates the assets of a company that has acquired the status of a joint-stock company or is based in accordance with applicable law in any part of its own territory and in which investors of the other Contracting Party have shares.

 Article 7 Transfer of payments related to investments 1. The Contracting Parties guarantee the free and immediate transfer of funds related to investments in accordance with the procedure established by the legislation of the Contracting Party, which may provide for: - rules for processing such transfers, taking into account that the right to free transfer is not violated; - taxes, fees and deductions from transfers amounts in accordance with the legislation of the Contracting Party; - protection of the legitimate rights of creditors or enforcement of judgments rendered during court proceedings. The procedure specified in this article must be fair and non-discriminatory. In this Agreement, transfers include: - the capital initially invested, as well as any additional foreign capital used to maintain or expand investments; - profits; - compensation in accordance with Article 5 of this Agreement; - payments arising from the resolution of an investment dispute; - payments in accordance with the loan agreement, as well as remuneration in connection with intellectual and industrial property rights, payment under the management, technical and maintenance agreement; - payment for work on a regular basis for individuals of the other Contracting Party engaged in investment-related activities; - proceeds from the sale or liquidation of part of or the entire investment, provided that the proceeds can be freely transferred only with the permission of the competent authority. 2. Transfers will be made without unnecessary delay in freely convertible currency at the exchange rate applied on the day of transfer. A transfer "without unnecessary delay" will be considered a transfer made within the time normally required to perform formal actions related to the transfer.

 Article 8 Subrogation 1. If a Contracting Party or its intermediary makes payments to its own investors in accordance with the guarantee it has provided in connection with an investment in the territory of the other Contracting Party, the latter Contracting Party recognizes: a) the transfer, either by law or under a legal agreement in that country, of any right of claim of the investor to the first Contracting Party or to to her designated intermediary, since both, b) that the first Contracting Party or its designated intermediary has obtained the right as a result of subrogation to exercise the rights and make demands of this investor and will assume obligations related to this investment. 2. The rights or claims obtained as a result of subrogation will not exceed the rights and requirements of the investor.

Article 9  Dispute settlement between a Contracting Party and an investor of the other Contracting Party 1. Any dispute that may arise between an investor of one Contracting Party and the other Contracting Party in connection with an investment in the territory of the latter Contracting Party shall be the subject of negotiations between the Contracting Parties to the dispute. 2. If any dispute between an investor of one Contracting Party and the other Contracting Party cannot be resolved in this way within six months from the date of the written request, the investor will have the right to refer the case: a) to the judicial authority of the Contracting Party in whose territory the investment is being carried out, or b) to the International Center for the Decision Investment Disputes (ICSID) , bearing in mind the relevant terms of the Convention on the Settlement of Investment Disputes between States and Citizens of Other States, which was opened for signature in Washington, D.C., on March 18, 1965, in the event that both Contracting Parties became parties to this Convention, or (c) to an arbitrator or to an international ad hoc arbitral tribunal established in accordance with the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). The parties to the dispute may agree to amend these Rules in writing. The arbitral awards will be final and binding on both parties to the dispute.

Article 10  Settlement of disputes between the Contracting Parties 1. Disputes between the Contracting Parties concerning the interpretation or application of this Agreement should, if possible, be resolved through mutual consultations and negotiations. 2. If such a dispute cannot be resolved in this way within six months of its commencement, it will, at the request of either Contracting Party, be submitted to Arbitration in accordance with the provisions of this article. 3. The Arbitration Court will be established for each individual case as follows: within two months of receiving a written request for an arbitration award, each of the Contracting Parties will appoint one member of this Court. These two members will then elect a citizen of a third State, who, after approval by the Contracting Parties, will be appointed Chairman of the Court (hereinafter referred to as the "Chairman"). The Chairman will be appointed within three months from the date of appointment of the other two members. 4. If during any of the periods specified in paragraph 3 of this Article the necessary appointments have not been made, any Contracting Party may, in the absence of any other agreement, invite the President of the International Court of Justice to make the necessary appointments. If it turns out that he is a citizen of a Contracting Party or if other reasons prevent him from fulfilling this function, the Vice-Chairman will be invited to make the necessary appointments. If it turns out that the Deputy is a national of a Contracting Party or is unable to perform the specified function, the next-in-command member of the International Court of Justice, who does not have the nationality of any of the Contracting Parties, will be invited to make the necessary appointments and can perform the specified function without hindrance. 5. The Arbitration Court will reach its decisions by a majority vote. Such decisions will be binding on each Contracting Party. Each Contracting Party will bear the costs of its members of the court and its representation in the arbitration proceedings; the costs of the chairman and other costs will be borne in equal parts by both Contracting Parties. The Arbitral Tribunal will determine its own procedure and may, by its decision, determine which of the Contracting Parties will bear the majority of the costs.

Article 11  Application of other rules and special obligations 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 other Contracting Party from taking advantage of those rules that are more favorable in relation to their case. 2. If the treatment to be provided by one Contracting Party to an investor of the other Contracting Party in accordance with its laws and regulations or other special contractual provisions is more favorable than that provided by this Agreement, a more favorable one will be provided.

Article 12 Entry into force, amendments and additions 1. The Contracting Parties shall exchange notes notifying of the implementation of the domestic procedures provided for by the national legislation of each of the Contracting Parties regarding the entry into force of international agreements. The effective date of this Agreement is the date of receipt of the last note. 2. This Agreement will be valid for 10 (ten) years after its entry into force and will remain in force until its validity is terminated in accordance with paragraph 6 of this article. 3. From the moment of its entry into force, the provisions of this Agreement shall also apply to investments made since December 16, 1991. 4. With respect to those investments that were made prior to the termination of this Agreement, the provisions of all previous articles of this Agreement will remain in force for 10 (ten) years from the date of termination. 5. This Agreement may be amended by written agreement between the Parties. Any amendment shall enter into force if each Party has notified the other Party of the completion of domestic procedures in accordance with paragraph 1 of this Article. 6. Each of the Contracting Parties may notify the other Contracting Party in writing one year before the expiration of this Agreement after the expiration of the first nine years or at any time thereafter.

In witness whereof, the signatories below, duly authorized representatives, have signed this Agreement.

Done in Baku on September 16, 1996, in two original copies in the Kazakh, Azerbaijani and Russian languages, all texts being equally authentic.

In case of discrepancies in the interpretation of the provisions of this Agreement, the text in Russian is for reference.

For the Government For the Government of the Republic of Kazakhstan The Republic of Azerbaijan

President

Republic of Kazakhstan

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