Convention on protection of the rights of the investor

of March 28, 1997

The State Parties of this Convention, the hereinafter referred to as Parties,

considering effective protection of the rights of the investor necessary condition of development of economies of the Parties,

promoting investment attraction in national economies of the Parties,

being guided by the Agreement on creation of Economic union of September 24, 1993,

in development of the Agreement on cooperation in the field of investing activities of December 24, 1993,

aiming at creation of general investment space and the approved approach to the questions connected with investment attraction

agreed as follows:

Part I. General provisions

Article 1. Main terms

For the purposes of this Convention the following terms are used:

the investor - the state, the legal entity or physical person performing investments of own, loan or raised funds in the form of investments;

investments - enclosed by the investor financial and appliances in different objects of activities, and also the transferred rights to property and intellectual property for the purpose of profit earning (income) or achievement of social effect if they are not withdrawn from circulation or are not limited in turnover according to the national legal system of the Parties;

the investment country of source - the state in the territory of which the investor - the legal entity is registered or the citizen of which is the investor - physical person;

the country recipient - the state in the territory of which there is investment object;

the corporeal right - right of possession, uses and orders property.

Article 2. Sphere of operations of the Convention

This Convention determines the legal basis of implementation of different types of the investments registered in the territory of the Parties, and guarantee of the rights of investors for implementation of investments and income gained from them.

The regulations and rules determined by this Convention are applied in case in the course of investment subjects of legal relationship of two and more states participate.

Regulation of the questions connected with activities of the investor and protection of its rights is performed by authorized state bodies of the country recipient.

Functions of coordination of the questions connected with operation of this Convention from bodies of the Commonwealth of Independent States are performed by Interstate economic Committee of Economic union (further - MEK).

Article 3. Investors

The states, legal entities and physical persons of both the Parties, and the third countries if other is not provided by the national legal system of the Parties can be investors.

Article 4. Forms of implementation of investments

The investor has the right to perform investments by any methods which are not prohibited by the legislation of the country recipient.

The party as the country recipient has the right of conducting examination of investment projects to observance of ecological, anti-monopoly and other requirements.

Article 5. Legal regime of implementation of investments and guarantee from changes of legislations

Conditions of implementation of investments, and also legal regime of activities of investors in connection with the performed investments cannot be less favorable, than conditions of implementation of investments and the mode of the related activities for legal entities and physical persons of the country recipient, except for withdrawals which can be established by the national legal system of the country recipient.

The parties have the right to review the list of withdrawals. In such cases they inform MEK on these changes.

The parties have the right to determine lists of priorities concerning industries, types of activity and regions for which more preferential terms of investment attraction are entered.

If after the introduction of this Convention in force, the Parties will change the legislative arrangements concerning investments which, according to one or several concerned parties, worsen conditions and the mode of investing activities this question can be submitted for consideration of Economic Court of the Commonwealth of Independent States and/or other international courts or international Arbitration Courts.

In case of removal by the specified courts of the decision confirming the fact of deterioration in conditions and the mode of investing activities, the mentioned legislative arrangements are suspended from the moment of their acceptance (that is such conditions and the mode as though these regulations were not accepted remain) and renews from the moment of the expiration of five-year term from the date of decision under condition and in part, not contradicting this Convention. This provision does not extend to changes of the legislation concerning defense, homeland security, protection of public order, the environment, morality and health of the population, the taxation and also to the list of withdrawals.

Article 6. Lists of withdrawals and priorities of the countries - recipients

The list of withdrawals contains names of industries, the companies, organizations which according to the national legal system of the Parties are not subject to privatization, incorporating or other forms of privatization of property.

The list of priorities establishes industries, the companies, the organizations, types of activity and regions for which preferential terms of investment attraction are entered.

Lists of withdrawals and priorities are subject to publication in official publications of the Parties and MEK.

Part II. State guarantees of protection of investments

Article 7. Legal regulation of investing activities

The relations connected with implementation of investments and activities of investors in connection with them are regulated by this Convention, the national legal system of the Parties, and also international treaties which participants they are.

Article 8. Legal protection of investments

Unconditional legal protection which is provided with this Convention, the national legal system of the Parties, and also international treaties which participants they are is provided to investments in the territory of the Parties.

Article 9. Guarantees of protection of investments against nationalization,

requisitions, from decisions and actions (failure to act) of the state bodies and officials infringing the investor's rights

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