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

The Law of the Republic of Kazakhstan dated November 22, 1996 No. 43-I

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of Romania on the Promotion and Mutual Protection of Investments, signed in Bucharest on April 25, 1996.

President of the Republic of Kazakhstan

 agreement BETWEEN THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN AND THE GOVERNMENT OF ROMANIA 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 5, 1997)

The Government of the Republic of Kazakhstan and the Government of Romania, hereinafter referred to as the "Contracting Parties", desiring to strengthen and expand economic cooperation between the two Contracting Parties, desiring to create favorable conditions for the implementation of investments by investors of one Contracting Party in the territory of the other Contracting Party, recognizing that the promotion and mutual protection of investments will contribute to the economic development of the Contracting Parties, have agreed as follows:  

ARTICLE 1 DEFINITIONS For the purposes of this Agreement: 1. The term "Investments" means all types of property values and rights to them that investors of one Contracting Party invest in the territory of the other Contracting Party in accordance with its legislation, in particular, but not exclusively: - movable and immovable property and any other related property rights, including guarantees, liens, easements, mortgages; - shares, unit contributions, bonds, and any other forms of participation in enterprises, joint-stock companies, and other legally recognized legal entities registered in accordance with the laws of each of the Contracting Parties; - loans, credits, targeted bank and financial deposits, and other monetary claims related to investments; - intellectual property rights, including copyrighted objects, patents, trademarks, service marks, goodwill, trade names, industrial designs, business secrets and "know-how"; - rights to concessions in accordance with the law, including concessions for the exploration, extraction and exploitation of natural resources, and as well as other rights granted by law, contract, or government decision in accordance with the law; - reinvestment of income and payments of principal and interest on loan agreements. 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. 2. The term "investor" refers in relation to the Contracting Parties to a) natural persons who, in accordance with the law of one Contracting Party, are considered its citizens; b) any legal entity established in accordance with the applicable legislation of one of the Contracting Parties; 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: - In relation to the Republic of Kazakhstan, the state territory of the Republic of Kazakhstan, including free economic zones, the continental shelf and the subsoil over which the Republic of Kazakhstan exercises, in accordance with international law, its sovereign rights and jurisdiction; - In relation to Romania, the territory of Romania, including the territorial sea, as well as the exclusive economic zone over which Romania, in accordance with its legislation and international law, exercises its sovereign rights and jurisdiction.  

ARTICLE 2 PROMOTION AND PROTECTION OF INVESTMENTS 1. Each Contracting Party will encourage investments made in its territory by investors of the other Contracting Party and will allow these investments in accordance with its legislation. 2. If one Contracting Party has agreed to invest in its territory, it will submit, in accordance with its laws and regulations, the necessary permits related to this investment, including the right to hire managerial and technical personnel of its choice, regardless of nationality.

 ARTICLE 3 LEGAL REGIME OF INVESTMENTS 1. Each of the Contracting Parties will ensure fair and equitable treatment for investments by investors of the other Contracting Party and will not infringe through arbitrary or discriminatory measures on the management, operation, use or disposal of these investments. 2. Each of the Contracting Parties shall ensure in its territory a regime for investments no less favorable than that provided to investments of its own investors or investments of investors from third countries. 3. The most-favored-nation treatment provided in accordance with paragraphs 1 and 2 of this Article will not apply to benefits that a Contracting Party provides or will provide in the future: a) in connection with participation in a free trade area, customs or economic union; b) on the basis of an International Agreement for the Avoidance of Double Taxation or other agreements on taxation; c) agreements on cross-border trade.  

ARTICLE 4 EXPROPRIATION 1. Investments of investors of one of the Contracting Parties may not be requisitioned, nationalized, expropriated or subjected to other measures having such consequences as requisition, nationalization, expropriation (hereinafter referred to as expropriation), except in cases where expropriation is carried out in the public interest and is carried out: - in accordance with the procedure established by law; - without discrimination- with the payment of immediate, adequate and effective compensation. 2. Compensation should be equal to the actual market value of the expropriated investment immediately before the time of expropriation or before the impending expropriation became known, whichever occurs first. 3. Compensation must include interest corresponding to the effective interest rate of the National Bank and calculated for the period between the date specified in paragraph 2 of this Article of this Agreement and the date of payment of compensation. Compensation is paid in the currency in which the investment was made, or, with the investor's consent, in any other currency. Compensation is subject to transfer abroad without restrictions and unnecessary delay.

 ARTICLE 5 COMPENSATION FOR DAMAGE 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.

ARTICLE 6 TRANSFER OF PAYMENTS RELATED TO INVESTMENTS 1. The Contracting Parties guarantee that all transfers of funds related to investments are carried out freely and without unnecessary delay in accordance with the procedure established by the legislation of the Contracting Party in whose territory the investment was made and this procedure may provide for: - rules for processing such transfers, taking into account that the the right of free transfer; - withholding taxes and fees from the amounts transferred; - 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, in particular, but not exclusively: - income as defined in paragraph 3 of Article 1 of this Agreement; - amounts paid to repay loans recognized by both Contracting Parties as investments; - amounts received by the investor in connection with partial or complete liquidation or sale of investments; - compensation for damages and losses in accordance with Articles 4 and 5 of this Agreement. 2. Transfers will be carried out without unnecessary delay in freely convertible currency at the exchange rate applicable on the day of transfer, in accordance with the currency legislation.

 ARTICLE 7 THE PRINCIPLE OF MORE FAVOURABLE TREATMENT 1. If the legislation of any Contracting Party contains a provision that provides investors of the other Contracting Party with more favorable treatment than is provided for in this Agreement, this provision, if it has more favorable treatment, shall take precedence over this Agreement. 2. Each Contracting Party will comply with any other obligations that it has assumed for investments made in its territory or by investors of the other Contracting Party.

 ARTICLE 8 SUBROGATION If a Contracting Party or any institution authorized by it makes payments to any of the investors of its State within the framework of a guarantee or insurance concluded in connection with the investment, the other Contracting Party will recognize the assignment to the first Contracting Party or its institution of any rights or claims inherent in the investor. A Contracting Party or any of its institutions that have taken over the investor's rights are entitled to the same rights that the investor has and to claim such rights to the same extent, subject to the investor's obligations related to the investment insured in this way.

ARTICLE 9 SETTLEMENT OF DISPUTES BETWEEN THE CONTRACTING PARTIES 1. Disputes between the Contracting Parties concerning the interpretation and application of the provisions of this Agreement will be resolved through diplomatic channels. 2. If no agreement is reached by the Contracting Parties within six months from the date of the dispute, the dispute, at the request of either Contracting Party, will be referred to a three-member arbitral tribunal. Each of the Contracting Parties appoints one arbitrator, and the appointed arbitrators select a chairman who will be a citizen of a third country maintaining diplomatic relations with both Contracting Parties. 3. If one of the Contracting Parties does not appoint an arbitrator and does not agree with the invitation of the other Contracting Party to make such an appointment within two months, the arbitrator shall be appointed at the request of that Contracting Party by the President of the International Court of Justice in The Hague. 4. If the two arbitrators cannot agree on the choice of a chairman within two months from the date of their appointment, he shall be appointed at the request of either Contracting Party by the President of the International Court of Justice. 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 one of the Contracting Parties, such appointment will be made by the Vice-President, and if he is unable to perform the relevant functions or is a national of one of the Contracting Parties, then The appointment will be made by the most senior judge of the International Court of Justice, who is not a citizen of either Contracting Party. 6. Without violating other decisions between the Contracting Parties, the arbitral tribunal will establish its own rules of procedure. The arbitration court makes a decision by a majority vote. 7. Each of the Contracting Parties shall bear the expenses for the maintenance of its member of the court, as well as in accordance with its share in the arbitration procedure, the expenses for the maintenance of the chairman and other expenses shall be covered by the Contracting Parties in equal parts. 8. The court's decisions are final and binding on each of the Contracting Parties.  

ARTICLE 10 SETTLEMENT OF DISPUTES BETWEEN A CONTRACTING PARTY AND AN INVESTOR OF THE SECOND CONTRACTING PARTY 1. In order to resolve a dispute between a Contracting Party and an investor of the second Contracting Party in relation to an investment, negotiations will be conducted between the Parties concerned. 2. If negotiations do not lead to a resolution of the dispute within six months from the date of the request for resolution. The parties to the dispute may submit the dispute for resolution: (a) to the competent court of the Contracting Party in whose territory the investment was made; or (b) to the International Center for Settlement of Investment Disputes (ICSID) in accordance with the Agreement on Settlement of Investment Disputes between States and Persons of Other States, opened for signature in Washington on March 18, 1965.; or c) to an Arbitral tribunal, which, unless otherwise agreed between the parties to the dispute, will be convened in accordance with the terms of the arbitration rules of the United Nations Commission on International Commercial Law (UNCITRAL). 3. Each Contracting Party agrees to submit investment disputes to international arbitration. 4. During the arbitration proceedings or the enforcement of the award of the arbitral tribunal, the Contracting Party involved in the dispute will not put forward as an argument that the investor of the other Contracting Party has received partial or full compensation for the damage incurred on the basis of insurance.

 ARTICLE 11 FINAL PROVISIONS 1. The Contracting Parties shall exchange notes on the implementation of the legal procedures provided for by the national legislation of each Contracting Party with regard to the entry into force of international agreements. This Agreement shall enter into force 30 days after the date of the mutual exchange of notes of the Contracting Parties. 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. (Independence of the Republic of Kazakhstan). However, the Agreement will not apply to disputes arising prior to its entry into force. 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 a period of 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 that it has regulated all its own formalities preventing the entry into force of such amendment in accordance with the procedure provided for in paragraph 1 of this Article. 6. Each of the Contracting Parties may notify the other Contracting Party in writing one year before the expiration date of the termination of this Agreement upon the expiration of the first nine years or at any time thereafter.

If no official note on termination of the Agreement has been notified, the Agreement is considered updated. In witness whereof, we, duly authorized representatives, have signed this Agreement.

Done in Bucharest on April 25, 1996, in two original copies each in the Kazakh, Romanian and Russian languages, all texts being equally authentic.

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

FOR THE GOVERNMENT FOR THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN ROMANIA

President

Republic of Kazakhstan

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