On ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the French Republic on Mutual Promotion and Protection of Investments and its Protocol

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Law of the Republic of Kazakhstan dated July 5, 2000 No. 77

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the French Republic on Mutual Promotion and Protection of Investments and its Protocol, signed in Paris on February 3, 1998.

President of the Republic of Kazakhstan

Agreement * between the Government of the Republic of Kazakhstan and the Government of the French Republic on Mutual Promotion and Protection of Investments

*(Entered into force on August 21, 2000 - Bulletin of International Treaties of the Republic of Kazakhstan, 2004, No. 5, art. 27)

The Government of the Republic of Kazakhstan and the Government of the French Republic, hereinafter referred to as the "Contracting Parties", wishing to strengthen economic cooperation between the two countries and create favorable conditions for the growth of investments between the two countries, convinced that the promotion and protection of these investments stimulate the transfer of capital and technology between the two countries in the interests of their economic development, agreed as follows:

Article 1

For the purposes of this Agreement: 1. The term "investment" includes property values of all kinds, such as property, economic or financial rights and interests invested in the territory or in the maritime zone of one of the Contracting Parties in accordance with its legislation before or after the entry into force of this Agreement, and in particular, but not exclusively: a) movable and real estate, as well as any other real rights such as mortgages, liens, usage rights, sureties, and similar rights; b) shares, issue bonuses and other types of participation, including participation by a minority of votes and indirect participation, in companies established in the territory of one of the Contracting Parties; c) bonds, claims on funds and services of economic value; d) copyrights, industrial property rights (such as patents, licenses, trademarks and brand names, industrial designs and layouts), technological processes, know-how and clientele; e) concessions granted under the law or under a contract, including concessions for the exploration, development, extraction and use of natural resources, including those located in the maritime zone of the Contracting Parties defined by paragraph 5 of this Article. Any change in the form of investments does not affect their qualification as an investment, provided that such a change does not contradict the legislation of the Contracting Party in whose territory or in the marine zone this investment is made. 2. The term "citizen" means an individual who holds the citizenship of the Republic of Kazakhstan or the French Republic in accordance with the legislation of each of the Contracting Parties. 3. The term "company" means any legal entity established in the territory of one of the Contracting Parties in accordance with the legislation of that Contracting Party and having its location in the territory of that Contracting Party, or controlled directly or indirectly by nationals of one of the Contracting Parties or legal entities having their location in the territory of one of the Contracting Parties and established in accordance with in accordance with the legislation of this Contracting Party. 4. The term "income" means all amounts received from investments, such as profits, interest, deductions and dividends received during a given period. Income from investments, as well as, in the case of repeated investments, income from repeated investments will be provided with the same protection as the investments themselves. 5. This Agreement applies to the territory of the Republic of Kazakhstan and the French Republic, respectively, as well as to their maritime zone, hereinafter defined as the economic zone and continental shelf extending beyond the territorial waters of each of these States, over which they exercise sovereign rights and jurisdiction in accordance with international law for the purposes of exploration, development and conservation of natural resources.

Article 2

Each Contracting Party shall allow and encourage, within the framework of its national legislation and the provisions of this Agreement, investments made by citizens and companies of the other Contracting Party on its territory and in its maritime zone.

Article 3

Each Contracting Party undertakes to ensure fair treatment on its territory and in its maritime zone, in accordance with the principles of international law, for investments of citizens and companies of the other Contracting Party, and to ensure that the exercise of the right thus recognized is not infringed either by law or in fact.

Article 4

Each Contracting Party will provide, on its territory and in its maritime zone, citizens and companies of the other Contracting Party with no less favourable treatment for their investments and activities related to these investments than that which it provides to its own citizens and companies or that which is provided to citizens or companies of the most favoured nation, if the latter is more favorable. However, this regime will not apply to privileges granted by one Contracting Party to citizens or companies of a third country resulting from participation in or entry into a free trade area, customs union, common market or any other form of regional economic organization, or arising from a double taxation agreement or any other agreement. in the field of taxation.

Article 5

1. Investments made by citizens and companies of one Contracting Party will be provided with full and comprehensive protection and security on the territory and in the maritime zone of the other Contracting Party. 2. The Contracting Parties will not take any expropriation or nationalization measures or any other measures aimed at depriving, directly or indirectly, citizens or companies of the other Contracting Party of their investments in their territory and in their maritime zone, except in cases where this is necessary in the public interest, and provided that that such measures will not be discriminatory and will not contradict a special commitment made by the Contracting Party concerned or its relevant institutions. Any dispossession measures that can be taken should be accompanied by prompt and adequate compensation, the amount of which should be calculated based on the actual value of the relevant investments. This amount should be estimated in relation to the normal economic situation that existed before the threat of dispossession. This compensation, the amount and the terms of payment must be determined no later than the moment of the deprivation of property. The compensation is effectively implemented, is paid without delay, is freely transferable and includes interest accrued at the appropriate interest rate up to the time of payment. 3. Citizens and companies of one Contracting Party whose investments have suffered losses as a result of war or any other armed conflict, revolution, state of emergency or uprising on the territory or in the maritime zone of the other Contracting Party will be provided by the latter Contracting Party, in respect of compensation for these losses, a regime no less favorable than that which it provides to its own citizens and companies, or citizens and companies of the most favored nation, if the latter regime is more favorable.

Article 6

Each Contracting Party in whose territory or in the maritime zone investments have been made by citizens or companies of the other Contracting Party shall provide these citizens and companies with a free transfer of: a) interest, dividends, profits and other current income; b) deductions arising from intangible rights in accordance with subparagraphs "d" and "e" of paragraph 1 of Article 1; c) amounts intended for repayment of loans under legally concluded contracts; (d) Amounts from the sale, total or partial liquidation of investments, including income from surplus value; (e) Compensation for loss of property or for losses provided for in paragraphs 2 and 3 of Article 5. Citizens of each Contracting Party who have received permission to work in the territory or in the maritime zone of the other Contracting Party as a result of approved investments, It will also be allowed to transfer an appropriate share of your earnings to your country. The transfers provided for in the preceding paragraphs are made without delay at the normal exchange rate officially applicable on the date of transfer in the country, territory or maritime zone of which the investment was made.

Article 7

If the legislation of one of the Contracting Parties provides for a guarantee for investments made outside its borders by citizens or companies of that Contracting Party, this guarantee may be provided, as part of a case-by-case study, to investments made by citizens or companies of that Contracting Party on the territory or in the maritime zone of the other Contracting Party. Investments made by citizens and companies of one of the Contracting Parties in the territory or in the maritime zone of the other Contracting Party may receive the guarantee specified in the previous paragraph only if they are previously approved by the latter Contracting Party in cases where such approval is required.

Article 8

Any dispute related to investments that arises between one Contracting Party and a citizen or company of the other Contracting Party will be settled, as far as possible, through direct negotiations and consultations between the parties to the dispute. If such a dispute cannot be resolved within six months from the moment when it was raised by one or the other of the disputing parties, then it can be submitted at the choice of a citizen or a company: either to arbitration at the International Center for Settlement of Investment Disputes (ICSID), when both Contracting Parties become parties to the Convention on Settlement of Investment Disputes between by States and citizens of other States, opened for signature in Washington on March 18, 1965; or for consideration by the ad hoc arbitration court, which is established in accordance with the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL).

Article 9

If one of the Contracting Parties, by virtue of a guarantee given for an investment made on the territory or in the maritime zone of the other Contracting Party, makes payments to one of its citizens or one of its companies, this Contracting Party in this case has the full right of subrogation with respect to the rights and actions of this citizen or this company. The above-mentioned payments do not affect, however, the rights of the person using the guarantee to seek assistance from ICSID or to continue the claim until the completion of the procedure.

Article 10

Investments that are the subject of a special obligation of one of the Contracting Parties in respect of citizens and companies of the other Contracting Party will be subject, without prejudice to the provisions of this Agreement, to the terms of the said obligation, if the latter contains provisions more favorable than the provisions of this Agreement.

Article 11

1. Disputes relating to the interpretation or application of this Agreement will, as far as possible, be settled through diplomatic channels. 2. If the dispute cannot be settled within six months from the moment when it was raised by one of the Contracting Parties, it is referred to the arbitration court at the request of either Contracting Party. 3. The said arbitration court will be established in each individual case as follows: Each Contracting Party will appoint one arbitrator, and these two arbitrators will choose by mutual agreement a citizen of a third country, who will be appointed chairman of the arbitral tribunal by both Contracting Parties. All arbitrators must be appointed within two months from the date of notification by one of the Contracting Parties to the other Contracting Party of its intention to submit the disputed issue to the arbitral tribunal. 4. If the deadlines specified in paragraph 3 are not met, any Contracting Party, in the absence of any other arrangements, shall invite the Secretary-General of the United Nations to make the necessary appointments. If the Secretary-General is a national of one of the Contracting Parties or for some other reason is unable to perform the specified function, the Deputy Secretary-General, who is next in seniority to the Secretary-General and is not a national of one of the Contracting Parties, shall make the necessary appointments. 5. The Arbitration court makes its decisions by a majority vote. These decisions are final and binding on both Contracting Parties. The Arbitration Court will set its own rules of procedure. He will interpret his decision at the request of either Contracting Party. The costs associated with the arbitration proceedings, including the remuneration of the arbitrators, shall be distributed equally between the Contracting Parties, unless the court decides otherwise, taking into account special circumstances.

Article 12

Each Contracting Party will notify the other Contracting Party of the completion of the internal procedures necessary for the entry into force of this Agreement. The Agreement will enter into force one month after the date of the last notification. The agreement is concluded initially for a period of 10 years. It will remain in force thereafter until neither Contracting Party notifies the other Contracting Party of its denunciation through diplomatic channels one year in advance.

Upon expiration of the period of validity of this Agreement, investments made while it was in force will be protected in accordance with the provisions of the Agreement for an additional period of twenty years.

Done in Paris on February 3, 1998, in two original copies, each in the Kazakh, French and Russian languages, all three texts being equally authentic.

For the Government For the Government of the Republic of Kazakhstan of the French Republic

Protocol

When signing the Agreement between the Government of the Republic of Kazakhstan and the Government of the French Republic on Mutual Promotion and Protection of Investments, the Contracting Parties agreed that the following provisions are an integral part of the Agreement: Regarding paragraph 3 of Article 1: Direct or indirect control over a legal entity can be established, in particular, on the basis of the following facts: the status of a branch; the presence of a share of direct or indirect participation that allows effective control, and in particular the presence of participation exceeding 50 %; direct or indirect possession of the right to vote, allowing to have a decisive role in governing bodies or otherwise have a decisive influence on their work. Regarding article 3: (a) Any restriction on the purchase and transportation of raw materials and related materials, energy and fuel, as well as means of production and operation of all types, any infringement on the sale and transportation of products inside and outside the country, as well as any other measures, are considered infringements on the law or on the essentially fair regime. having an effect similar to the infringement of a rightfully or essentially just regime; b) The Contracting Parties, within the framework of their domestic legislation, will favourably consider requests for entry and residence, work and movement permits submitted by citizens of one Contracting Party in connection with investments made in the territory or in the maritime zone of the other Contracting Party. Citizens authorized to work on the territory and in the maritime zone of one of the Contracting Parties should be able to use, in accordance with the legislation of this Contracting Party, the material conditions necessary for the performance of their professional activities.

Done in Paris on February 3, 1998, in two original copies, each in the Kazakh, French and Russian languages, all three texts being equally authentic.

For the Government For the Government of the Republic of Kazakhstan of the French Republic

President

Republic of Kazakhstan

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