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

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Law of the Republic of Kazakhstan dated July 12, 1996 No. 22-I

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the State of Israel on the Promotion and Mutual Protection of Investments, signed in Jerusalem on December 27, 1995.

The President of the Republic Kazakhstan

Application

Agreement between the Government of the Republic of Kazakhstan and The Government of the State of Israel 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 February 19, 1997)

The Government of the Republic of Kazakhstan and the Government of the State of Israel (hereinafter referred to as the "Contracting Parties"), wishing to promote the strengthening of economic cooperation on a mutually beneficial basis, striving to create favorable conditions for increasing investments by investors of one Contracting Party in the territory of the other Contracting Party, and recognizing that the promotion and mutual protection of investments based on this Agreement will lead to the stimulation of individual business initiatives and will contribute to the prosperity of both countries, We have agreed on the following:

Article 1 Definitions For the purposes of this Agreement: 1. The term "investment" means any type of funds invested in accordance with the laws and regulations of the Contracting Party in whose territory the investment is made, including, in particular, but not exclusively: a) movable and immovable property, as well as other property rights such as mortgages, the right to seize property, liens and any other similar rights, as determined in accordance with the laws and regulations of the Contracting Parties on whose territory the property is located.; b) rights arising from shares, bonds and other forms of participation in the company; c) claims for monetary amounts, goodwill, other assets and any other performance claims of economic value; d) intellectual property rights, technical processes and "know-how"; e) commercial concessions provided for by by law or contract, including concessions for exploration, exploration, extraction or exploitation of natural resources. 2. A change in the form in which funds are invested or reinvested in accordance with the laws and regulations of the Contracting Party in whose territory the investment is carried out does not affect their nature as investments in accordance with the meaning of this Agreement. 3. The term "investor" means: with respect to investments in the State of Israel: a) individuals who are citizens of the Republic of Kazakhstan and who are not citizens or permanent residents of Israel; or b) companies, including corporations, firms or associations, founded or established in accordance with the law of the Republic of Kazakhstan, which are not directly or indirectly managed by citizens or permanent residents of Israel. Regarding investments in the Republic of Kazakhstan: a) individuals who are citizens of Israel and who are not citizens of the Republic of Kazakhstan; or b) companies, including corporations, firms or associations, founded or established in accordance with the law of the State of Israel, which are not directly or indirectly managed by citizens or permanent residents of the Republic of Kazakhstan. 4. The term "income" means the amount received in the investment process, including, but not limited to: dividends, profits, amounts received from the total or partial liquidation of investments, interest, profits from operations on the stock exchange, royalties or fees. 5. The term "territory" in relation to each Contracting Party means the territory of a Contracting Party, including territorial waters, as well as the continental shelf and exclusive economic zone, to which the Contracting Party has sovereign rights or jurisdiction in accordance with international law.

 Article 2 Investment promotion and protection 1. Each Contracting Party promotes and creates favorable investment conditions on its territory for investors of the other Contracting Party and, using the right to exercise authority, authorizes such investments in accordance with the law. 2. None of the Contracting Parties should violate the rights of investors related to investment activities by using unjustified and discriminatory actions.

Article 3 Most-favored-nation treatment and its national application 1. No Contracting Party in its territory, with respect to investments or profits from investments of investors of another Contracting Party, shall grant treatment less favorable than that granted to investments or profits from investments of its investors or investments or profits of investors of any third country. 2. None of the Contracting Parties in its territory should provide investors of the other Contracting Party with a less favorable treatment for the management, maintenance, use or placement of their investments than that provided in relation to their own investors of any third country.  

Article 4 Compensation of losses 1. Investors of one of the Contracting Parties whose investments in the territory of the other Contracting Party suffer losses as a result of war or other armed conflict, revolution, state of emergency, uprising, riot or similar activities in the territory of the latter Contracting Party must receive appropriate treatment from the latter Contracting Party in respect of damages, compensation or other settlements., no less favorable than that, which the latter Contracting Party provides to its own investors or to investors of any third country. 2. Without prejudice to paragraph (1) of this Article, investors of one of the Contracting Parties who, in any of these situations relevant to this paragraph, suffer losses in the territory of the other Contracting Party as a result of: a) the requisition of their property by its forces or authorities, or b) the destruction of their property by its forces or authorities, which was not caused by the fighting or was not a requirement of necessity in this situation, restoration of the original legal status or adequate compensation must be provided. The resulting payments must be freely transferable.

 Article 5 Expropriation 1. Investments of investors of one of the Contracting Parties should not be nationalized, expropriated or subjected to measures having the effect of nationalization or expropriation (hereinafter referred to as "expropriation") in the territory of the other Contracting Party on a non-discriminatory basis with prompt, adequate and effective compensation. Such compensation should be equal to the market value of investments expropriated immediately before expropriation or before impending expropriation becomes publicly known, and should include a percentage corresponding to the rate stipulated by the Contracting Party on the day of payment, should be made without delay, should be feasible and freely transferable. Investors should have the right, in accordance with the law of the Contracting Party that carried out the expropriation, to review his case with the help of judicial or other independent bodies of the other Contracting Party and evaluate the investment, in accordance with the provisions set out in this paragraph. 2. If a Contracting Party expropriates the assets of a company under Article 1 (3), which is incorporated or founded in accordance with a law in force in its territory and in which investors of the other Contracting Party hold shares or other ownership rights, it shall ensure that the provisions of paragraph (1) of this article are applied to the extent that It is necessary to ensure prompt, adequate and effective compensation.

 Article 6 Repatriation of investments and income 1. Each Contracting Party must, with respect to investments, guarantee to investors of the other Contracting Party all rights and benefits with respect to the unrestricted transfer of their investments and income that were in force on the date of the current investment, provided, however, that the investor has fulfilled all his financial obligations and fulfilled all requirements for currency regulation. Transfers must be made without delay in the convertible currency in which the capital was originally invested or in another convertible currency as agreed with the investor and the Contracting Party. Unless otherwise decided by the investor, transfers must be made in accordance with the current regulations on currency regulation. 2. In the event of a change in the provisions on currency regulation by one Contracting Party, this Contracting Party guarantees that no such changes will adversely affect the state of investments already made in the territory of this Contracting Party.

Article 7 Exceptions The provisions of this Agreement concerning the granting of a regime no less favorable than that granted to investors by any of the Contracting Parties or to any third State should not be interpreted in such a way that one of the Contracting Parties is obliged to provide investors of the other with the advantages of any regime, preferences or privileges arising from: a) anyeither by international agreement or arrangement, wholly or mainly related to taxation or any domestic legislation wholly or mainly related to taxation; b) any existing or future agreement on a customs union, free trade area or similar international agreement to which a Contracting Party is or may become a party; c) agreements on the promotion and mutual protection of investments, signed by the State of Israel before January 1, 1992.

 Article 8 Appeal to the International Center for Settlement of Investment Disputes and Disagreements 1. In the event that the Republic of Kazakhstan becomes a party to the Convention, each Contracting Party hereby agrees to apply to the International Center for Settlement of Investment Disputes (hereinafter referred to as the "Center") for a settlement through conciliation or arbitration, in accordance with the Convention on Settlement of Investment Disputes between States and Nationals of Other States, opened for signature in Washington on March 18, 1965 (hereinafter referred to as the "Convention"), any legal dispute, arising between this Contracting Party and an investor of the Other Contracting Party in respect of investments made by the latter in the territory of the former. 2. A company registered or incorporated, according to the applicable legislation, in the territory of one Contracting Party, and in which, prior to the occurrence of such a dispute, the majority of shares belonged to citizens or companies of the other Contracting Party, in accordance with Article 25(2)(b) of the Convention, for the purposes of the Convention, shall be considered as a company of the other Contracting Party. 3. If any such dispute arises and it cannot be resolved amicably or otherwise within 3 months from the date of written notification of the existence of the dispute, the investor whose interests are affected may initiate conciliation or arbitration proceedings by sending a request to the Secretary General of the Center, as stipulated in Article 28 or 36 of the Convention. accordingly. A Contracting Party that is a party to the dispute should not raise as an objection at any stage of the proceedings or the enforcement of a court decision the fact that the investor, who is the opposing party to the dispute, has received compensation in respect of any or all of his losses in accordance with the insurance contract. 4. Neither Contracting Party shall initiate proceedings through diplomatic channels in respect of any dispute referred to the Center, unless: (a) the Secretary General of the Center or a conciliation commission organized by him or an arbitration court decides that the dispute does not fall under the jurisdiction of the Center; or (b) the other Contracting Party does not complies with or does not comply with any decision made by the arbitration court. 5. Until the Republic of Kazakhstan becomes a party to the Convention, any dispute arising between one Contracting Party and an investor of the other Contracting Party that cannot be resolved amicably or otherwise within 6 months from the date of written notification of the claim is referred, upon request, to a special arbitration court. The Court shall be established and operate in accordance with the rules laid down in Article 9, paragraphs (3) to (5).

Article 9 Disputes between the Contracting Parties 1. Disputes between the Contracting Parties concerning the interpretation or application of this Agreement shall be resolved, if possible, through diplomatic channels, which may include, if both Contracting Parties so wish, referral to a bilateral commission consisting of representatives of both Contracting Parties. 2. If the dispute between the Contracting Parties cannot be resolved in this way within 6 months from the date of notification of the dispute, the case shall be referred to an arbitration court at the request of one of the Contracting Parties. 3. Such an arbitration court is established for each individual case as follows: within 2 months after receiving the request for a trial, each Contracting Party appoints one member of the court. These two members then select a citizen of a third State, who, upon approval by the two Contracting Parties, is appointed Chairman of the Court. The Chairman is appointed within 2 months from the date of appointment of the other two members. 4. If the necessary appointments are not made within the period specified in section (3) of this Article, either Contracting Party may, in the absence of any other agreement, invite the Chairman of the Arbitration Court of the International Chamber of Commerce in Paris (hereinafter referred to as the ICC) in order to make any necessary appointments. If the Chairman is a national of any of the Contracting Parties or for any other reason cannot be allowed to perform this function, then one of the Vice-Chairmen who is not a citizen of any of the Contracting Parties will be invited to make the necessary appointments. 5. The arbitration court shall make a decision by a majority vote. Such a decision will be binding on both Contracting Parties. Each Contracting Party shall bear the costs of its member of the court and of its representation in the judicial proceedings.; The costs of the Chairman and the remaining costs are paid equally by the Contracting Parties. The Court will determine its own procedure.

Article 10 Subrogation 1. If one of the Contracting Parties or an organization designated by it (hereinafter referred to as the "First Contracting Party") makes a payment under a loss guarantee issued in respect of an investment in the territory of the other Contracting Party (hereinafter referred to as the "Second Contracting Party"), the Second Contracting Party recognizes: a) the transfer to the First Contracting Party by law or a legitimate transaction of all the rights and claims of the party to whom the losses were reimbursed; and b) that the First Contracting Party has the right to enjoy the same rights and enforce such claims through subrogation as the party to whom the losses were reimbursed, and will assume obligations related to the investment. 2. The first Contracting Party will in all circumstances be entitled to: (a) The same treatment with respect to the rights, claims and obligations acquired by it through transfer; and b) any payments received in fulfillment of these rights and claims that the party to whom the losses were reimbursed was entitled to receive through this Agreement in respect of said investments of their respective profits.

 Article 11 Application of other rules If the provisions of the law of either Contracting Party or obligations under international law currently existing or subsequently established between the Contracting Parties in addition to this Agreement contain rules, whether general or specific, entitling investments of investors of one Contracting Party to a more favorable regime than that provided for by the Agreement. to this Agreement, such rules will prevail over this Agreement to the same extent of a more favorable regime.

 Article 12 Application of the Agreement The provisions of this Agreement are applicable to investments made after or before the entry into force of this Agreement, but in any case are not applicable to investments made before 12/16/91.

Article 13 Entry into force Each Contracting Party shall notify the other Contracting Party in writing through diplomatic channels of the completion of its internal legal procedures necessary to bring this Agreement into force.

Article 14 Term of validity and termination This Agreement remains in force for 10 years. It may then remain in force until the expiration of 12 months from the date of written notification by one of the Contracting Parties of its termination to the other Contracting Party. As for investments made while this Agreement remains in force, its provisions will remain in force after the date of termination and without prejudice to the subsequent application of the rules of general international law in respect of those investments that were designed for a 10-year period. This Agreement may be amended by both parties.

Any amendments to the Agreement will be made according to a procedure similar to the entry into force of this Agreement.

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

Done in Jerusalem on December 27, 1995, which corresponds to____ ____________ 5756, in two copies in Kazakh, Hebrew and English, all three texts being equally authentic.

In case of discrepancies in the interpretation of the provisions of this Agreement, the English text will prevail.

President

Republic of Kazakhstan

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