The COMMUNICATION FROM the
Ministry of Foreign Affairs
Ministry of Foreign Affairs says that the 8 March. October 1996
Prague agreement signed between the Czech Republic and the Republic of Kazakhstan on
the promotion and mutual protection of investments.
Parliament gave its assent to the agreement the United States and the President of the
the Republic has ratified the agreement.
Agreement entered into force, pursuant to article 12 paragraph 2. 1 day 2.
The Czech version of the agreement shall be published at the same time. In the Russian text of the agreement, which
for its interpretation of the applicable, can be consulted at the Ministry of
Foreign Affairs and the Ministry of finance.
between the Czech Republic and the Republic of Kazakhstan on the promotion and mutual
protection of investments
Czech Republic and the Republic of Kazakhstan (hereinafter referred to as "the Contracting Parties"),
Desiring to intensify and expand economic cooperation between the
both Contracting Parties,
intending to create favourable conditions for investments by investors of one
Contracting Party in the territory of the other Contracting Party,
Noting that the promotion and reciprocal protection of investments in accordance with this
the agreement will encourage the development of entrepreneurial initiatives in this area,
have agreed upon the following:
The definition of the
For the purposes of this agreement: 1. The term "investment" refers to all kinds of
assets invested in accordance with the economic activities
profit investors of one Contracting Party in the territory of the other
the Contracting Parties in accordance with its laws, regulations, and includes, in particular,
but not limited to:
a) movable and immovable property, as well as all associated property
law, such as pledges, mortgages, guarantees and similar rights;
b) stocks, bonds of companies, bonds or any other form of
the participation in the assets of a legal person;
(c) the claim or claims) cash from such kinds of activities that have
economic value and is associated with the investment.
(d)) intellectual property rights and industrial law, including
Copyright, patents, trade marks, trade names,
industrial designs, marketing secrets, trade secrets,
technological processes, know-how and goodwill associated with the investment.
(e)) the rights conferred by law or contract, licence or
the concession issued under the law, including rights relating to concessions to
exploration, extraction, cultivation or exploitation of natural resources.
Any change in the form in which the values are invested does not affect the
their character as investments.
2. the term "investor" means any natural or legal person,
that invests in the territory of the other Contracting Party.
and) the notion of "natural person" means any natural person who is a national
the citizenship of one of the Contracting Parties in accordance with its legal regulations;
b) "legal person" means, with regard to both parties
any company registered or established in accordance with the applicable
jurisdiction and recognised as a legal person, which has a permanent seat on the
the territory of one of the Contracting Parties.
3. The term "returns" means the amounts yielded from investments and includes
in particular, but not exclusively, profits, dividends, interest, capital gains,
interest on loans, royalties, and any other legal income.
4. the term "territory" means the territory of the United States and the territory of the Kazakh
Republic, over which each Contracting Party exercises sovereign
rights and jurisdiction in accordance with international law.
The promotion and protection of investments
1. Each Contracting Party shall encourage and create favourable conditions
for investors of the other Contracting Party, to invest in its territory in
accordance with its legal system.
2. Investments of investors of one Contracting Party in the territory will be provided
the other party proper and fair treatment, and these investments
will be on this territory enjoy full protection and security.
National treatment and MFN clause
1. each Contracting Party shall in its territory for investments and returns
investors of the other Contracting Party treatment, which is the proper and fair
and no less favourable than that accorded to investments or the proceeds of their
its own investors or investments of investors of any proceeds or
of a third State, if this is more favourable.
2. each Contracting Party shall accord to investors of the other party within its territory
the parties, regarding the management, maintenance, use, recovery or disposal
with their investments, treatment which is the proper and equitable and not less
favorable, than to its own investors or to investors
any non-Member State, if this is more favourable.
3. the provisions on national treatment and MFN clause referred to in
This article shall not apply to benefits, which provides Contracting
Party on the basis of its obligations arising from its membership in the
the customs, economic or monetary Union, a common market or free zone
4. each Contracting Party agrees that the obligations of the other party
-Member of the customs, economic or monetary Union, a common market or zone
free trade-includes the obligations deriving from international treaties
regarding this customs, economic or monetary Union, a common market
or free trade zone.
5. the provisions of this agreement may not be construed as a commitment
the Contracting Parties to provide investors of the other party, their
investments or the proceeds of such an advantage, preference or privilege, that
a party may provide to you under the agreement for the avoidance of
of double taxation and the prevention of fiscal evasion with respect to taxes on income and
capital, or on the basis of other international agreements relating to
Compensation for damage
1. If the investments of investors of one Contracting Party suffer damage
as a result of war or other armed conflict, a State of emergency,
civil disturbance or other similar events on the territory of the other
the Contracting Parties shall provide the Contracting Party with regard to compensation,
compensation, compensation or other settlement, a treatment no less favourable than that
than what will provide the contracting party to its own investors or
investors of third States.
2. Notwithstanding paragraph 1 of this article will be to investors of a Contracting
the parties, who, during the events referred to in the preceding paragraph have suffered
damage in the territory of the other Contracting Party of:
) and seize their assets, by the armed forces or by an
the other Contracting Party;
(b)) the destruction of their property by the armed forces or by the official authorities of the other
the Contracting Parties, which was not due to combat action or not
invoked when the necessity of the situation,
given fair and reasonable compensation for any damage suffered during the
grabbing or as a result of destruction of property. The resulting payment will be without
delay in freely convertible currency is converted.
1. investments of investors of one Contracting Party may not be nationalized,
expropriated or subjected to a measure having the same effect as
nationalization or expropriation (hereinafter referred to as "expropriation") on the territory of the other
the Contracting Parties, with the exception of cases, when the expropriation shall be carried out in
the public interest. Expropriation shall be carried out according to the law, without
discrimination and will be accompanied by measures to pay immediate,
adequate and effective compensation. Such compensation will be equal to the value of the
the expropriated investment immediately before the expropriation or before the
the intended expropriation became publicly known, whichever occurred
previously; the compensation shall include interest from the date of expropriation, it is converted
abroad without restrictions and without undue delay in a freely convertible
currency and will be freely transferable.
2. The investor has the right to request an urgent review of its
the case and the assessment of its investments to the judicial or other independent
authority of a Contracting Party in accordance with the principles contained in this article.
1. without prejudice to the measures adopted by the European Union, each of the
the Contracting Party in whose territory the investors of the other party
they placed their investments, will allow those investors, after all
their tax obligations, the free transfer of payments relating to these
investments in the freely transferable currency, without obstacles and undue
delay, in particular, but not limited to:
and) originally invested capital and also any extra capital to
maintain or increase the investment;
(b)) gains, interest, dividends and other current income;
(c)) the amounts on the redemption of loans;
d) license or other fees;
(e)) the proceeds of the total or partial sale or liquidation of the investment;
f) remuneration for legally work by natural persons of the other party
parties engaged in activities associated with investments, in accordance with the
the legal order of the Contracting Party where the investment takes place.
2. transfers will be made in freely convertible currency according to the constituent
rate applicable on the date of transfer, unless otherwise agreed.
3. transfers that were made "without undue delay" referred to in paragraph 1 of this
Article means transfers effected within the time limit, which is usually
necessary for the implementation of such a conversion. This period shall in no case
shall not exceed two months.
Assignment of rights
1. If a Contracting Party or any authorized her agency
makes a payment to any your own investor because of the guarantees
or insurance contained in relation to investment, recognised by the other Contracting
and the assignment of any right or) claim the investor Party
or her authorised agency regardless of whether a transfer has occurred from
the law or on the basis of the legal arrangements in this country; as well as the
(b)) that the Contracting Party or its designated agency is by way of referral
the rights of the investor shall be entitled to exercise the rights and entitlements of this float
Investor and assume the obligations related to the investment.
2. The assignee's rights or claims shall not exceed the rate of indigenous rights or
claims of the investor.
Settlement of investment disputes between a Contracting Party and an investor of the other Contracting
1. Any dispute which may arise between the Contracting Parties and
the investor of the other Contracting Party in connection with an investment in the territory of the
the other Contracting Parties, will be solved by negotiations between the parties in dispute.
2. If a dispute between an investor of one Contracting Party and other Contracting
a party will not be as follows settled within 6 months from the date of receipt of the written
the notice of dispute, the young investor is entitled, at its discretion,
submit the dispute to the decision of either:
and) to the competent court of the Contracting Party in whose territory the investment has been
(b) the International Centre) settlement of investment disputes (ICSID)
taking into account the applicable provisions of the Convention on the settlement of investment disputes
between States and nationals of other States, opened for signature in Washington, d.c.
D.c. on 18. March 1965 in the case that the two parties are parties to the
This Convention, or
(c)) the arbitrator or a Court of arbitration set up by the international ad hoc basis
conciliation rules of the United Nations Commission for international
business law (UNCITRAL). The parties in dispute may agree in writing
on the changes of these rules. The arbitration award shall be final and binding for the
both parties to the dispute, if the arbitration rules or international agreements
involving both parties, something else.
The resolution of disputes between the Contracting Parties
1. disputes between the Contracting Parties concerning the interpretation or application of this
the agreement will, if possible, resolved through consultations or
2. If the Contracting Parties have not reached agreement within the time limit of six months from the
the emergence of the dispute, the dispute shall, at the request of either contracting party be submitted
arbitration in accordance with the provisions of this article.
3. the arbitral tribunal shall be established for each individual case in the following
way. Each Contracting Party shall designate one arbitrator, within two
months from receipt of the request for arbitration. These two arbitrators then
Select a citizen of a third State, that will be with the consent of both Contracting
party appointed President of the Court (hereinafter referred to as "the Chairman"). The Chairman will
appointed to three months from the date of the appointment of the two arbitrators.
4. If, in one of the periods referred to in paragraph 3 of this article has not been
performed necessary appointment, shall appoint an arbitrator at the request of one of the
of the parties to the UNITED NATIONS the President of the International Court of Justice. If
the President of the International Court of Justice UNITED NATIONS citizen of a Contracting
the parties cannot enforce this Act or for any other reason, shall appoint an arbitrator
Vice-President of the International Court of Justice of the UNITED NATIONS. If you also
Deputy Chairman of a citizen of either Contracting Party or is unable to do this
the Act will be to perform the necessary appointment asked senior
Member of the International Court of Justice of the UNITED NATIONS, who is not a citizen of any of the
of the Contracting Parties.
5. the arbitral tribunal adopts its decisions by majority vote. Such
the decision is final and binding on both parties. Each Contracting
Party shall bear the costs associated with the activities of her appointed arbitrator and of its
participation in the arbitration proceedings; the costs of the Chairman and other expenses will be
be borne by the parties equally. In other matters, shall determine
The arbitral tribunal's own rules of procedure.
The use of other provisions and specific commitments
1. in the event that there is some question dealt with at the same time this agreement and
another international agreement, to which both parties are party,
Nothing in this Agreement shall not preclude any Contracting Party, or
any investor that owns its investment in the territory of the other Contracting
the Party took advantage of any law which are for him
2. If the treatment granted by either party to investors
the other Contracting Party in accordance with its legal regulations or other
special contractual provisions is more favourable than that
provided for in this agreement, will be used this more favourable treatment.
Essential security interests
1. None of the provisions in this Agreement shall be interpreted so that it is prevented from
any of the Contracting Parties to take measures it deems
necessary for the protection of its essential security interests:
and) relating to criminal offences;
(b)) regarding the trade in weapons, ammunition and military equipment, and
transactions in other goods, materials, services, and technologies that
are carried out with the purpose of supplying a military or other security forces;
(c)) taken in time of war or in time of emergencies in the
(d)) related to the implementation of national policies or international agreements
relating to the prohibition of the dissemination of nuclear weapons or other nuclear
explosive devices, or
(e)) in accordance with its obligations under the Charter of the UNITED NATIONS to the maintenance of
international peace and security.
2. the essential security interests of the Contracting Parties may involve the interests of the
arising from its membership in the customs, economic or monetary Union,
common market or free trade zone.
The applicability of this agreement
The provisions of this Agreement shall be applicable to future investments made
investors of one Contracting Party in the territory of the other Contracting Party and also on the
investments made in accordance with its legal system before the entry
the agreement enters into force.
1. The Contracting Parties shall replace the note about the fulfilment of constitutional requirements
each of the parties required for the entry of international treaties in the
force. This agreement shall enter into force on the date of receipt of the later note.
2. this Agreement shall remain in force for a period of 10 years, and after this
time will remain in effect until the next twelve months from the date of
When a contracting party informs the other party of its
intention to terminate the agreement.
3. for investments made before the expiry of this agreement,
the provisions of any previous articles remain of this agreement are effective for a period of
10 years from the date of their expiry.
4. By mutual agreement of the parties, this agreement may be amended and
supplemented by separate protocols, which are an integral part of it.
In witness whereof the undersigned, duly authorised thereto, have signed this agreement.
Done at Prague on 8. October 1996, in duplicate in the Czech,
Kazakh and Russian languages. In case of inconsistencies in the interpretation of the provisions of the
Agreement, the parties will follow the Russian text of the agreement.
For the Czech Republic:
Ing. Ivan Kočárník, CSc. v. r.
Deputy Prime Minister and Minister of finance
In the Kazakh Republic:
A. m. Kažegeldin in r.
the Prime Minister