The Agreement Between The Czech Republic And Kazakh Republic On The Promotion And Vzáj. Protection Of Investments

Original Language Title: dohoda mezi ČR a Kazašskou rep. o podpoře a vzáj. ochraně investic

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217/1999 Coll.



The COMMUNICATION FROM the



Ministry of Foreign Affairs



Change: 81/Coll.



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.

April 1998.



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.



The AGREEMENT



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:



Article 1



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.



Article 2



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.



Article 3



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

trade.



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

taxation.



Article 4



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.



Article 5



The expropriation



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.



Article 6



Transfers



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.



Article 7



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

page:



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.



Article 8



Settlement of investment disputes between a Contracting Party and an investor of the other Contracting

the parties



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

implemented, or



(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.



Article 9



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

negotiations.



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.



Article 10



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

more favourable.



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.



Article 11



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

international relations;



(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.



Article 12



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.



Article 13



Final provisions



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

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