Agreement between the Government of the Republic of Tajikistan and Government of the Republic of Armenia on encouragement and mutual protection of investments

of April 2, 2002

The government of the Republic of Tajikistan and the Government of the Republic of Armenia which are hereinafter referred to as with "Contracting parties"

understanding that encouragement and mutual protection of investments will promote development mutually advantageous trade and economic and sci-tech cooperation between two Contracting Parties, and also will increase welfare of both states;

wishing to create favorable conditions for investors of one Contracting Party in the territory of other Contracting Party;

providing to equal protection of the rights, interests and property of subjects of investing activities of Contracting Parties;

based on the principles of equality, mutual respect, sovereignty and mutual advantage,

agreed as follows:

Article 1. Determinations

For the purposes of this agreement the following terms mean:

1. The term "investor" means concerning each of Contracting Parties:

a) any physical person who is the citizen of the state of the Contracting Party or constantly living pas of the territory of the Contracting Party and competent according to its legislation to perform investments in the territory of other Contracting Party;

b) any legal entity or other company created or founded according to the legislation of one of Contracting Parties, having the location in the territory of one of Contracting Parties and recognized by the legislation of the last.

2. The term "investments" covers all types of property intellectual values which with chain of implementation of economic activity are invested or reinvested by the investor of one Contracting Party in the territory of other Contracting Party in accordance with the terms, the provided legislations of each of Contracting Parties, in particular, but not only:

a) money, purpose-oriented bank deposits, shares, shares, debt obligations and other securities;

b) personal and real estate (buildings, constructions, the equipment and other material values) and the related property rights, including the right of pledge, lease and deduction of mortgage;

c) monetary claims and rights to claim on any activities having economic value, contractual commitments;

d) rights to intellectual property items (copyright, rights to inventions, patents, industrial projects and samples, trademarks, brand names, indexes of origin, technology, "know-how" and others);

e) the concessions provided on the basis of the law or the agreement, including in particular, the rights to investigation, development and operation of natural resources.

Within this agreement, legal change of form in which property is invested or reinvested will not influence their nature as investment.

3. The term "income" means the amounts received as a result of investments as profit and includes, in particular, but not only: profit, dividends, interest payments, fees, capital gain, royalty, license and commission fees.

4. The term "territory" means:

a) concerning the Republic of Tajikistan - the territory of the Republic of Tajikistan;

b) concerning the Republic of Armenia - the territory of the Republic of Armenia.

Article 2. Encouragement and protection of investments

1. Each of Contracting Parties will encourage investors of other Contracting Party to perform investments in the territory and to allow such investments according to the legislation.

2. Investments as they are determined according to Item 2 of Article 1, and the related income will use complete protection according to this agreement. The same treats without prejudice to provisions of Item 1 of this Article and all income gained in case of reinvestment of such income. The expansion performed within the law, change or transformation of investment will be considered as new investments.

Article 3. National treatment of investments

1. Each of Contracting Parties shall provide in the territory concerning investments of investors and activities in connection with investments of other Contracting Party the fair and equal mode excluding application of measures of discrimination nature which could interfere with management and the order of investments.

2. The mode mentioned in Item 1 of this Article will be at least favorable, than the mode which is provided own investors or investors of any third state and the activities connected with such investments.

3. Provisions of this Article do not extend to privileges and benefits which the Contracting Party provides or will provide in the future to investors of any other third state or their investments on basis:

a) its participations in the free trade area, custom or economic union, in the organization of economic mutual assistance or in the international agreement providing privileges and benefits, similar to those which are provided by the Contracting Party to members of the specified organizations;

b) on the basis of the agreement about avoidance of double taxation or other arrangement on the taxation.

Article 4. Expropriation of investments and compensation of losses

1. The investments of investors of one of Contracting Parties performed in the territory of other Contracting Party will not be expropriated, nationalized or subjected to the measures equal for expropriation effects (further hereinafter are referred to as - expropriation), except as specified, when such measures are taken in public and state interests and are performed in the procedure established by the legislation, and are followed by payment of preliminary and equivalent compensation.

2. Compensation shall correspond to real market value of the expropriated investments not indifferently till the moment when officially it became known of the actual implementation, or of the forthcoming expropriation. Compensation will be paid without unreasonable delay, in freely convertible currency and freely to be transferred from the territory of one Contracting Party on the territory of other Contracting Party. Until complete payment on compensation amount percent according to percent and rate of that Contracting Party in the territory of which investments are performed will be charged.

3. Owing to war or other armed conflict, emergency state, civil conflicts, coup, revolt or other similar event, in the territory of the last Contracting Party the mode, at least favorable will be provided to investors of one Contracting Party to whose investments damage in the territory of other Contracting Party is caused, than that which the last Contracting Party provides to own investors or investors of any third state, except cases of natural disasters, the fires, accidents, epidemics, and other circumstances, the having extreme character.

Article 5. Payment transfer connected with investments

1. Each of Contracting Parties, will guarantee to investors of other Contracting Party after accomplishment of all tax and other types of obligatory payments by them free transfer abroad of payments in connection with investments, and in particular, on not exclusively:

a) the amounts of initial investment and the additional amounts for maintenance and increase in investments;

b) the profit got from investments;

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