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

of December 16, 1999

The government of the Republic of Kazakhstan and the Government of the Republic of Tajikistan, is lower referred to as "Contracting parties",

wishing to strengthen and expand economic cooperation between two Contracting Parties,

wishing to create favorable conditions for implementation of capital investments of investors of one Contracting Party in the territory of other Contracting Party,

recognizing that encouragement and mutual protection of investments according to the Agreement will promote economic development of Contracting Parties,

agreed as follows:

Article 1. Determinations

For the purposes of this agreement:

1. The term "investments" means all types of property and the rights to them, and also the intellectual property rights put by investors in objects of business activity for the purpose of profit earning (income) and covers, in particular, but not only:

- personal and real estate and any other related property rights, including mortgages, right to retain of mortgage or other pledge and means on accounts in banks and other financial institutions;

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

- the loans, the credits, purpose-oriented bank and financial deposits and other monetary claims connected with implementation of investments;

- the rights to objects of intellectual and industrial property, including the objects protected by copyright, patents, trademarks, service marks, trade names, industrial designs, economic secrets and "know-how";

- reinvestment of the income and payments of principal debt and percent on credit agreements.

2. The term "investor" means:

a) the physical person who is the citizen of one of the states of Contracting Parties according to their current legislation;

b) any legal entity founded according to the current legislation of the state of one of Contracting Parties;

c) the legal entity who is not founded according to the legislation of the state of one of Contracting Parties, but directly or indirectly controlled by physical persons or legal entities of the state of the same Contracting Party.

3. The term "income" means:

The means received as a result of implementation of investments or related in cash or natural form, including profit, dividends, remuneration for enterprise management, the maintenance and any other means received in the legal way.

4. The term "territory" means:

the state territory of the states of Contracting Parties, including free economic zones, the continental shelf and subsoil over which the states of Contracting Parties perform, according to international law, the sovereign rights and jurisdiction.

5. Change of form of the investment permitted according to the legislation and other regulations of the state of the Contracting Party in the territory of which investments were performed does not change their nature as investments.

Article 2. Encouragement and protection of investments

1. Each of Contracting Parties will promote investments of investors of other Contracting Party and will resolve such investments according to the legislation of the state.

2. Each of Contracting Parties will provide the fair and equal mode for investments of investors of other Contracting Party and will not restrain management, functioning, use or the order of these investments due to any or discriminatory measures.

Article 3. Legal regime of investments

1. Contracting parties mutually provide in the territory concerning investments the mode, at least favorable, than that which is provided to investments of own investors or investments of investors of the third countries.

2. This mode does not extend on:

a) benefits which one of Contracting Parties provides to investors of the certain countries in connection with participation, joint with them, in custom or economic union of free trade;

b) benefits which one of Contracting Parties provides to investors of the certain countries based on the agreement on avoidance of double taxation or other agreements on tax questions.

Article 4. Guarantees to investments

Investments of investors of one of Contracting Parties cannot be confiscated, nationalized, expropriated or subjected to other measures having such effects as requisition, nationalization, expropriation (further - expropriation) unless expropriation is performed in public concerns and is made:

- according to the procedure, established by the legislation of the state of the Contracting Party performing expropriation;

- without discrimination;

- with payment without delay of adequate compensation.

Compensation shall be equal to fair market value of the expropriated investments for a moment when the investor knew of expropriation.

Compensation shall include percent corresponding to effective interest rate and the expropriations calculated for the period between date and compensation payment date. Compensation is paid in that currency in which investments, or, with the consent of the investor, in any other currency were performed. Compensation is subject to transfer abroad without restrictions and excess delay.

Article 5. Compensation of damage

To investors of one of Contracting Parties, to whose investments in the territory of other Contracting Party the damage as a result of war or other armed conflict, emergency state, civil collisions or similar circumstances was caused, the mode, at least favorable, than applied concerning national investors, or investors of the third countries is provided, in case of compensation of the damage suffered by them as a result of the above-stated circumstances.

Article 6. Payment transfer, connected with investments

1. Contracting parties guarantee that all money transfers connected with investments are made freely and without excess delay according to the procedure established by the legislation of the state of the Contracting Party by which can be provided:

- rules of registration of such transfers taking into account that the right of free transfer was not violated;

- tax withholding and charges from the transferred amounts;

- protection of legitimate rights of creditors or ensuring accomplishment of the decisions passed during legal proceedings.

The procedure specified in this Article shall be fair and non-discriminatory. In this agreement transfers include:

- originally invested capital, and also any supplementary foreign capital used for maintenance or expansion of investments;

- profit;

- compensation according to Article 4 of this agreement;

- the payments following in case of the decision of investment dispute;

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