Agreement between the Government of the Republic of Kazakhstan and Government of the Republic of Uzbekistan on encouragement and mutual protection of investments

of June 2, 1997

The government of the Republic of Kazakhstan and the Government of the Republic of Uzbekistan, hereinafter referred to as "Contracting parties",

wishing to promote on long-term basis to broader economic cooperation between them for mutual advantage of both states,

recognizing need of encouragement and protection of investments for the purpose of creation and preserving advantageous conditions for investments to investors of the state of one Contracting Party in the territory of the state of other Contracting Party,

agreeing that the stable basis of investments will provide maximum efficiency of use of economic resources and development of productive forces,

agreed as follows:

Article 1. General determinations

For the purposes of this agreement:

1. The term "investor" extends and includes:

a) legal entities of the states of Contracting Parties;

b) citizens, consolidation of citizens and stateless persons of the states of Contracting Parties.

2. The term "investments" means any kind of property and the rights to them, and also the intellectual property rights put by investors of one Contracting Party on the territory of the state of other Contracting Party for the purpose of profit earning (income) and covers, in particular, but not only:

a) personal and real estate and related property rights;

b) money, shares, deposits and other securities and any forms of participation in the companies, joint-stock companies, economic partnerships, associations and other legal entities registered according to the legislation of each of Contracting Parties;

c) the monetary claims and other rights having the economic value connected with implementation of investments;

d) copyright, right to intellectual and industrial property, such as inventions, patents, industrial projects and samples, trademarks, trade names, indexes of origin, technology, know-how and others;

e) rights of possession and uses of the earth (including on the basis of lease) and natural resources.

3. Change of form of investments, implementation according to the legislation of the state of the Contracting Party in the place of investment, does not change its qualification as investment.

4. The term "legal entities" means any legal entity, education according to the legislation of the state of one Contracting Party and performing investments in the territory of the state of other Contracting Party.

5. The term "citizens" means the faces having the nationality and legal capacities by the legislation of the state of one Contracting Party which are constantly living in its territory or abroad and performing investments in the territory of the state of other Contracting Party.

6. The term "stateless persons" means the persons without citizenship who are constantly living in the territory of the state of one Contracting Party, registered according to the legislation of the state of this Contracting Party for conducting business activity and performing investments in the territory of the state of other Contracting Party.

7. The term "income" means, but is not exclusive, the means received as a result of investments as they are determined in Item 2 of this Article in the form of profit, percent, dividends, royalty, license and commission fees, payments for technical assistance, maintenance and other forms of remunerations.

8. The term "territory" means respectively the territory of the state of the Contracting Party over which it performs the sovereign rights and jurisdiction according to rules of international law.

Article 2 Encouragement and protection of investments

1. Each Contracting Party according to the legislation of the state will allow and encourage in the territory of the state of investment of investors of the state of other Contracting Party, and also to guarantee to these investments complete and unconditional legal protection.

2. Within the legislation of the state each Contracting Party will keep various shape of mutual investments, to provide their protection in the territory of the state and will not restrain these investments by any measures of management, concerning their functioning, use and arrangement.

3. If the Contracting Party within this agreement allowed on the territory of the state of investment, then this Contracting Party, according to the legislation of the state, to investors of the state of other Contracting Party will issue necessary permissions, connected, with such investments.

Article 3 National treatment and most favored nation treatment

1. Each of Contracting Parties will provide in the territory of the state to investments and the income of investors of the state of other Contracting Party the fair and equal mode, at least favorable, than that which it provides to investments and the income of own investors and/or investments and the income of investors of any third state.

2. Each Contracting Party concerning the investments performed by investors of the state of other Contracting Party will observe any obligations which follow from its national legal system and this agreement.

3. Provisions of this agreement concerning most-favored-nation principle shall not be interpreted as the preferential mode of preference or the privileges following from obliging one of Contracting Parties to extend to investors of the state of other Contracting Party:

a) the custom, currency and payment unions, free trade areas and single tariffs, the total market or any other forms of agreements on regional economic integration existing or possible in the future which member is or there can be one of Contracting Parties;

b) agreements on avoidance of double taxation or other international agreements on the tax matters.

Article 4 Application of Other Rules

If the provisions in the legislation of the state of one Contracting Party or the obligation connected with international law, existing in the present or created in the future in addition to this agreement contain regulations of general or specific nature on provision to investments of investors of the state of other Contracting Party of the mode more favorable, than that which is provided by this agreement, these provisions in that amount in which they are more favorable, will have priority in comparison with this agreement.

Article 5 Transfers

1. The contracting party in the territory of which state investments by investors of the state of other Contracting Party were performed after payment by these investors of the corresponding taxes, duties and charges, will provide free payment transfer, connected with these investments, in particular, but not only:

a) percent, dividends, profits and other current incomes as they are determined in Item 7 of Article 1 of this agreement;

b) the amounts of repayment of the loans recognized as both Contracting Parties as investments;

c) the licensed receipts and other payments coming from the rights provided in Item 2 of Article 1 of this agreement;

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