The Saeima has adopted and the President promulgated the following laws: For the Government of the Republic of Latvia and the Government of the Republic of Estonia, the agreement on investment promotion and reciprocal protection of article 1. 1996. February 7, Vilnius signed by the Government of the Republic of Latvia and the Government of the Republic of Estonia agreement on mutual investment promotion and protection (hereinafter contract) with this law is adopted and approved. 2. article. The law shall enter into force on the date of its promulgation. To put the contract in law Latvian and English. 3. article. In accordance with article 12 (1) of the Ministry of Foreign Affairs shall notify the Government of the Republic of Estonia concerning the statutory requirements. 4. article. The agreement shall enter into force 12 in paragraph 1 within the time and in order. The Parliament adopted the law of 2 May 1996. The President g. Ulmanis in Riga 15 May 1996, the Government of the Republic of Latvia and the Government of the Republic of Estonia agreement on investment promotion and protection between the Government of the Republic of Latvia and the Government of the Republic of Estonia (hereinafter referred to as "the Contracting Parties"), desiring to promote economic cooperation on a mutually beneficial basis, in order to create and maintain favourable conditions for investments by investors of one Contracting Party shall be carried out in the territory of the other Contracting Party, and realizing that, in accordance with this agreement, investment promotion and protection between the stimulus will serve as a business in this area and thus deepen economic cooperation and integration between the Baltic States, agreed as follows: article 1 definitions for the purposes of this agreement: 1. The term "investment" include all kinds of assets, invested in connection with business activities, which the investors of one Contracting Party shall, in the territory of the other Contracting Party in accordance with its legislation, and including, but not limited to, include: (a) movable and immovable property and any other property right, including mortgages, mortgages, property values, a burdens and similar rights; (b) the company shares, securities and Treasury bills bezsegum, or any other form of financial participation in a company; (c) property rights to money or to any performance having an economic value and associated with an investment; (d) intellectual property rights related to the investments, including copyrights, trademarks, patents, industrial design, technological processes, know-how or know-how, trade secrets, trade names; (e) all rights stipulated by legislation or contracts, and all licenses and permits for the legislative framework, including the concession to natural resource exploration, extraction, cultivation or use. Any changes to the original form of investment can not be a reason to change their status as investment. 2. The term "investor" means any natural or legal person who makes investments in the territory of the other Contracting Party. (a) the term "person" means any natural person who, in accordance with the legislation of a Contracting Party granted its nationality; (b) the term "legal person", in relation to any Contracting Party represents any company that founded or created under the legislation. 3. The term "proceeds" shall mean funds derived from investments, and including, but not limited to, include profit, interest, capital gains, dividends, and royalties. 4. The term "territory" means the territory of a Contracting Party, including the coastal waters of territorial, as well as any other water area which that Contracting Party in accordance with international law, exercises its sovereign rights with respect to the seabed and the zone's natural resources.   Article 2 promotion and protection of investments 1. Each Contracting Party undertakes to promote in its territory and to create favourable conditions for the investment of an investor of the other Contracting Party, as well as allow to make such investments in accordance with its legislation. 2. each Contracting Party, investments of investors at any time will ensure the fair and equal treatment, and are entitled to full protection and security in the territory of the other Contracting Party.   Article 3 national and most-favoured-nation treatment 1. Each Contracting Party undertakes to provide, in its territory of the other Contracting Party of the investor and the investment gains of a regime that is fair and equal, and at least as favourable as that which is provided to investors of his country for investment and profits, or a third country investments of investors and profit, whichever is more convenient. 2. Each Contracting Party undertakes to provide, in its territory of the other Contracting Party, investors in relation to their contribution to the management, maintenance, use, profit or sales conditions, which is a fair and equal footing and at least as favorable as those, which are provided in their national investors or investors of any third State, depending on which ones are most profitable. 3. paragraph 1 and the conditions referred to in paragraph 2 shall not be used to force one Contracting Party to extend to investors of the other Contracting Party advantages or privileges for which the Contracting Party referred to above may be granted in accordance with: (a) all types of Customs Union or free trade area, or monetary Union or a similar international agreements which provide for the creation of such a Union or institution or other forms of regional cooperation for establishment that have engaged in or may engage in any of the Contracting Parties; (b) any international agreement or arrangement, in whole or in part subject to the taxation.  4. Article 1 of the loss compensation in the event of a Contracting Party of the investor investment suffers losses, which is war, armed conflict, the implementation of an emergency in the country, revolution, rebellion, unrest or other similar nature, events in the territory of the other Contracting Party, the other Contracting Party shall undertake activities relating to property restitution, indemnification, compensation or other type of solution, which should be at least as favourable as that which is applied to their national investors or investors of any third State. The cost is free without delay substituted freely convertible currency. 2. Without prejudice to paragraph 1 of this article, the Contracting Parties of any investors who have any of the events referred to in this paragraph led suffered losses in the territory of the other Contracting Party, which arose was: (a) a violent or by the authorities of their property requisition, (b) violent or by the authorities of the destruction of their property, which was not made war or State imposing the need, are eligible to receive restitution or adequate compensation for damage who suffered property requisition or destruction. The relevant costs are freely exchanged without delay in freely convertible currency.   Article 5 Expropriation 1. investors of each Contracting Party, investments in the territory of the other Contracting Party are not subject to nationalization, expropriation, or actions whose consequences result, identical to the expropriation or nationalization (hereinafter referred to as "expropriation"), except if it is not made within governmental purposes. Disposal should be carried out according to the procedure provided for in the law on a non-discriminatory basis and in addition it must ensure timely, adequate and effective compensation. The amount of such compensation should be similar to seized the market value of the investment at the time before the transfer or before the seizures the fact was officially declared (depending on which of the above happened before) and must include interest, beginning with the date of the transfer, calculated in accordance with komerckurs. Compensation shall be paid without delay, it must be achievable and freely transferable in any freely convertible currency. 2. In accordance with the principles laid down in this article, the investor has the right according to the seizures made by the legislation of the contracting party to request the Contracting Party concerned promptly to examine his case or the value of the investment notaksēt court or some other independent body. 3. where a Contracting Party disposes of the assets of the company, who founded or created in accordance with the law and working in the territory in which the shares are held by investors of the other Contracting Party, it must ensure that the provisions of this article are applied to the extent necessary to ensure the timely, adequate and effective compensation for the investment for those investors of the other Contracting Party who are owners of those shares.   Article 6 transfers 1. the Contracting Parties undertake to guarantee the payment of transfers related to investments and profits. Transfers are made in freely convertible currency without any restrictions and impediments. Between such transfers, but not exclusive, include: (a) capital and additional features required to maintain or increase the investment; (b) profits, interest, dividends and other current income; (c) the loan principal; (d) the author's royalty payments; (e) the income from the sale or liquidation of the investment; (f) the remuneration of the natural person who, in the territory of the Contracting Party concerned takes work related to investment. 2. in the context of this arrangement, the exchange rate is determined according to the existing komerckurs which is in force on the date of execution of the transfer if one does not exist in this matter a special agreement. Article 7 substitution principle 1. If a Contracting Party or its authorized body in accordance with the guarantee that it provided for investments that are made in the territory of the other Contracting Party, makes payments to investors of his country, that the other Contracting Party undertakes to declare: (a) any rights or claims the transfer of the above-mentioned Contracting Party or to the body designated, either under national legislation whether legislation corresponding transfers, as well as (b) the Contracting Party referred to above or to the body designated in accordance with the principle of substitution is entitled to take over the rights of investors and bringing the claim, as well as assume all obligations relating to this investment. 2. The rights or claims must not exceed the original investors rights or claims.  Article 8 the investment dispute settlement between one Contracting Party and an investor of the other Contracting Party of 1. Any dispute which may arise between an investor of one Contracting Party and other Contracting Party in connection with investments made in the territory of the other Contracting Party, be settled by negotiation between the two parties to the dispute. 2. in the event of a dispute between an investor of one Contracting Party and other Contracting Party fails in such a way to resolve the six-month period, the investor has the right to bring a matter to either (a) the International Center for investment dispute (ICSID) sorting according to the conditions laid down in the Convention on the settlement of investment disputes between States and nationals of other countries who passed for signing Washington, 18 March 1965, when both Contracting Parties are parties to the Convention or (b) an arbitrator or to particular international convened in ad hoc arbitral tribunal established in accordance with the United Nations Committee on international trade (UNCITRAL) arbitration rules. The parties to the dispute have the right to agree in writing of changes in these terms. The arbitration award is final and binding for the two parties to the dispute.   Article 9 Disputes settlement between the Contracting Parties 1. disputes between the Contracting Parties concerning the interpretation or application of this Agreement shall be sorted amicably, through the diplomatic channel. 2. in the event of a dispute fails to pass in the six months, at the request of one of the Contracting Parties, the matter is referred to the arbitration in accordance with the terms of this agreement. 3. In each case the Tribunal building is determined by the following procedure. Two months after filed a request for arbitration, each Contracting Party shall appoint one member of the Court. The two appointed members of the Court shall designate one of the third-country national who, after the acceptance of both parties is appointed as Chairman of the arbitral tribunal (hereinafter called the Chairman). The Chairman shall be appointed within three months in Office, from both the General appointment of the members of the Court. 4. in case if the officers are appointed, not referred to in paragraph 3 of this article, may ask the President of the International Court of Justice to appoint the officials. If it turns out that the President is a national of a Contracting Party or if other reasons he is unable to perform this function, the request to appoint these officials are addressed to the Vice President. If the Vice President is a national of a Contracting Party or other reasons not able to fulfil this function, designate the officials asked that a member of the International Court of Justice, who occupy the next level of the hierarchy and who does not have citizenship of one of the Contracting Parties of 5. The arbitration award shall be taken by majority vote. Such a decision shall have binding effect. Each Contracting Party shall pay the expenses of its arbitrators and bear their share of the costs of the arbitration procedure. Chairman's expenses and other costs equally borne by the two Contracting Parties. At the same time the Tribunal shall have the right to decide that one of the Contracting Parties will cover the greater part of the expenditure, and this decision is binding on both Contracting Parties. Of court procedure shall be decided by the arbitral tribunal itself.   Article 10 of the rules and Other special conditions are applied 1. in cases where the question applies to both this agreement and any other international treaty, which is signed by both parties, this agreement in no way prevents both Contracting Parties or their investors, which holds investments in the territory of the other Contracting Party, to benefit from the provisions which are more favourable to the specific case. 2. If one of the Contracting Parties in accordance with its legislation or specific contractual obligations made to the other Contracting Party to extend to investors or investment conditions that are more favourable than those provided for in this Treaty, are applicable in the present case the conditions are more favourable.  Article 11 application of this agreement this Agreement shall apply to investments that are in the territory of one of the Contracting Parties in accordance with its legislation contributed the other Contracting Parties by investors before as well as after the entry into force of this Treaty, but it does not apply to investment disputes in cases where the dispute originated before the entry into force of this agreement, nor any claims if they settled, before the entry into force of this agreement. Article 12 entry into force of the agreement, the term and termination 1. each Contracting Party shall notify the other in writing of all the legislation procedures that are necessary to give effect to this agreement. This Treaty shall enter into force with the other written notice arrives. 2. This contract period is ten years and automatically extended for further ten-year periods, unless the year before the initial or any subsequent to the expiry of one of the contracting parties do not notify the other in writing of its intention to terminate this agreement. 3. in respect of investments made prior to the termination of this agreement, the provisions of this Agreement shall remain in force for ten years, counted from the time when this agreement is terminated. Stating the above, the undersigned authorized representative signed this contract. Done in duplicate at Vilnius, 1996 February 7, Latvian, Estonian and English languages, each text being equally authentic. In the event of a dispute concerning the interpretation of this agreement, on the basis of the English text.
The Republic of Latvia, the Republic of Estonia for the Government of for the Government of the agreement between the Government of the Republic of Latvia and the Government of the Republic of Estonia for the Promotion and Reciprocal Protection of investment by the Government of the Republic of Latvia and the Government of the Republic of Estonia (hereinafter referred to as the "Contracting Parties"), to intensify economic cooperation (menu Rngton Line4) to the mutual benefit of both countries Intending to create and maintain, favourabl condition for investments of investors of one Contracting Party in the territory of the other Contracting Party, and conscious that the promotion and reciprocal protection of investments, according to the present agreement, the business initiative of stimulat in this field and to further promote the economics of co-operation and integration between the Baltic countries, have agreed as follows : Article 1 Definition For the purpose of this agreement: 1. The term "investment" shall in every kind of compris asset invested in connection with economic activities by an investor of one Contracting Party in the territory of the other Contracting Party in accordanc with the law of the latter and shall include, in particular, though not exclusively:/a/movable and immovabl property as well as any other property rights such as mortgages in rem , lien, pledge, and similar rights; /b/, stock and debentur shares of companies or any other form of participation in a company; claims to money or/c/to any performance having an economic value associated with an investment; /d/intellectual property rights, including copyrights, trade marks, patents, industrial design, technical processes, know-how, trade secrets, trade names and goodwill associated with an investment; /e/any right conferred by law or under the provisions of the contract and any licenses and permit of the law, including pursuan the concession to search for, extract, or exploit cultivat natural resources. Any alteration of the form in which assets are invested shall not be affec their character as investment. 2. The term "investor" shall mean any natural or legal person who invest in the territory of the other Contracting Party. /a/the term "natural person" shall mean any natural person having the nationality of either Contracting Party in accordanc with it law. /b/the term "legal person" shall mean with respect to either Contracting Party, any entity incorporated or constituted in accordanc with it law. 3. The term "returns" shall mean the United Nations yielded by non investment and in particular, though not exclusively, includes profits, interest, capital gains, dividends, or fees to royalt. 4. The term "territory" shall mean the territory of a Contracting Party including the territorial sea, as well as any maritime area beyond that where a Contracting Party in conformity with international law exercises sovereign rights with regards to the seabed and subsoil and the natural resources of such areas. Article 2 Promotion and Protection of investments 1. Each Contracting Party shall create a favourabl encourag and conditions in its territory for investments of investors of the other Contracting Party and shall be admi such investments in accordanc with it law. 2. Investments of investors of either Contracting Party shall at all times be accorded fair and equitable treatment and shall enjoy full protection and security in the territory of the other Contracting Party. Article 3 National and Most-Favoured-Nation treatment Each Contracting Party shall 1 in its territory accord to investments and returns of investors of the other Contracting Party treatment which is fair and equitable and not less than that which it favourabl accord to investments and returns of its own investors or their investments and return of investors of any third State whichever is more favourabl. 2. Each Contracting Party shall in its territory accord investors of the other Contracting Party, as regards management, maintenance, use, or disposal of their enjoymen investment, a treatment which is fair and equitable and not less than that which it favourabl accord to its own investors or investors of any third State, whichever is more favourabl. 3. The provision of paragraphs 1 and 2 of this article shall not be construed so as to comp one Contracting Party to extend to the investors of the other the benefit of any treatment, preference or privilege which may be extended by the former Contracting Party by virtue of: any custom union or/a/free trade area or a monetary union or similar international agreements leading to such unions or institutions or other forms of regional co-operation to which either of the Contracting Party is or may become a party; /b/any international agreement relating wholly or mainly to or through their taxation. Article 4 Compensation for Loss 1. When investments by investors of either Contracting Party suffer the loss of their wars, armed conflict Owings, a State of national emergency, revolt, insurrections, riot or other similar events in the territory of the other Contracting Party, they shall be accorded by the latter Contracting Party the treatment, as regards restitution, indemnification, compensation or other settlement, no less than a favourabl that which the latter Contracting Party to its own investors accord or the investor of any third State. Resulting payments shall be freely transferabl in a freely convertible currency without delay. 2. Without prejudice to paragraph 1 of this article, the Contracting Party of the investor, one who in any of the events referred to in that paragraph suffer loss in the territory of the other Contracting Party resulting from:/a/requisitioning of their property by force or its authorities, the destruction of their property by/b/it forces or authorities which was not caused in combat action or was not required by the cessity of the situation , shall be accorded restitution or compensation for the just and the loss of adequat's sustained during the period of the requisitioning or as a result of the destruction of the property. Resulting payments shall be freely transferabl in a freely convertible currency without delay. Article 5 Expropriation 1. Investments of investors of either Contracting Party shall not be expropriated, nationalised or subjected to measure having effect equivalent to the nationalisation or expropriation (hereinafter referred to as "expropriation") in the territory of the other Contracting Party except for a public purpose. The expropriation shall be carried out under due process of law, on a non-discriminatory basis and shall be accompanied by provision for the payment of prompt, and effective compensation adequat. Such compensation shall amount to the market value of the expropriated investment immediately before the expropriation or impending expropriation becam before public knowledge, whichever is the earlier, shall include interest at a normal commercial rate from the date of expropriation, shall be made without delay, be effectively realizabl and be transferabl freely in a freely convertible currency. 2. The investor affected shall have a right, under the law of the Contracting Party making the expropriation, to prompt review, by a judicial or other independent authority of that Contracting Party, of its case and of the valuation of its investment in accordanc with the principles set out in this article. 3. Where a Contracting Party expropriat the assets of a company which is incorporated or constituted under the law in force in its territory, and in which investors of the other Contracting Party own shares, it shall ensur that the provision of this article with the applied to the exten cessary to guarantee a prompt, and effective compensation adequat in respect of their investment to such investors of the other Contracting Party who are owners of those shares. Article 6 Transfer 1. The Contracting Parties shall guarantee the transfer of payments related to investments and return. The transfers shall be made in a freely convertible currency, without any restriction and delay. Such transfers shall include in particular, though not exclusively:/a/and additional non it capital maintain or increase the investment; be/b/profits, interest, dividend and other current income; /c/funds in repaymen of loans; royalt to/d/or fe; /e/proceed of sale or liquidation of the investment; earnings of natural persons/f/working in the territory of that Contracting Party in connection with an investment. 2. For the purpose of this agreement, exchange rates shall be the prevailing commercial rate effective for the current transactions at the date of transfer, unless otherwise is agreed. Article 8 Subrogation If a Contracting Party 1 or its designated agency makes a payment to its own investors under a guarantee it has accorded in respect of an investment in the territory of the other Contracting Party, the latter Contracting Party shall recognize:/a/the assignment, whethers under the law or to a legal transaction in pursuan that country, of any right or claim by the investor to the former Contracting Party or its designated agency , as well as, the/b/that former Contracting Party or its designated agency is entitled by virtue of subrogation to exercise the rights and enforce the claims of that investor and shall assume the obligations related to the investment. 2. The subrogated rights or claims shall not exceeds 100 the original rights or claims of the investors. Article 8 settlement of investment Dispute between a Contracting Party and of an Investor of the Other Contracting Party 1. Any dispute which may «arise between an investor of one Contracting Party and the other Contracting Party in connection with an investment on the territory of the other Contracting Party shall be a subject to negotiation between the parties in dispute. 2. If any dispute between an investor of one Contracting Party and the other Contracting Party can not be settled within a period of of the six months, the investors shall be entitled to submit the case either it: the International Center for/a/settlement of investment Dispute (ICSID) having regards to the applicable provision of the Convention on the settlement of investment Dispute between the States and nationals of other States opened for signature at Washington on 18 March 1965 in Aachen, in the event both Contracting Parties shall have become a party to this Convention; or an international ad hoc arbitrator or/b/CAs tribunal established under the Arbitration Rules of the United Nations Commission on International Trade Law (UNCITRAL). The parties to the dispute may agree in writing to modify these rules. The CAs shall be final and binding awards on both parties to the dispute. Article 9 settlement of the Dispute between the Contracting Parties of the Dispute between 1 the Contracting Parties concerning the interpretation or application of this Agreement shall be settled amicably through diplomatic channels. 2. If the dispute cannot be settled within six months of the, it shall upon the request of either Contracting Party, be submitted to the UN Tribunal in accordanc Cas with the provision of this article. 3. The Tribunal shall be constituted for each Cas individual case in the following way. Within two months of the receipt of the request for arbitration, each Contracting Party shall be appoin one member of the Tribunal. These two members shall then select a national of a third State who on approval of the two Contracting Parties shall be appointed Chairman of the Tribunal (hereinafter referred to as the "Chairman"). The Chairman shall be appointed within three months from the date of appointment of the other two members. 4. If within the periods specified in paragraph 3 of this article the cessary appointments have not been made, a request may be made to the President of the International Court of Justice to make the appointments. If he happens to be a national of either Contracting Party, or if he is otherwise prevented from discharging the said function, the Vice-President shall be invited the President to make the appointments. If the Vice-President also happens to be a national of either Contracting Party or is prevented from discharging the said function, the member of the International Court of Justice next in seniority who is not a national of either Contracting Party shall be invited to make the appointments. 5. The Tribunal shall reach its decision Cas by a majority of votes. Such decision shall be binding. Each Contracting Party shall bear the cost of its own arbitrator and its representation in the CAs proceedings; the cost of the Chairman and the remaining costs shall be borne in equal parts by the Contracting Parties both. The Cas Tribunal may, however, decide that a higher proportion of the costs shall be borne by one of the two Contracting Parties shall be binding and this award on both Contracting Parties. The Cas Tribunal shall it will determin own procedure. Article 10 Application of Other rules and Special Commitment 1. Where a matter is governed simultaneously both by this agreement and by another international agreement to which both Contracting Parties are parties, nothing in this Agreement shall prevent either Contracting Party or any of its investors who own investments in the territory of the other Contracting Party from taking advantage of whichever rules with more favourabl to his case. 2. If the treatment to be accorded by one Contracting Party to investments of investors of the other Contracting Party in accordanc with it law or other specific provision of the contract is more than a favourabl that accorded by this agreement, the authority shall be accorded the more favourabl. Article 11 Applicability of this agreement this Agreement shall apply to investments made in the territory of one of the Contracting Parties in accordanc with it law by investors of the other Contracting Party prior to as well as after the entry into force of this agreement, but shall not apply to any dispute concerning an investment which aros, or any claim which was settled before its entry into force. Article 12 Entry into force, Duration and Termination 1. Each Contracting Party shall notify the other in writing of the completion of the procedures required by its law for the bringing This agreement into force. This agreement shall enter into force on the date of the second notification. 2. This agreement shall remain in force for a period of ten years and shall continue to be in force thereafter for further periods of ten years unless, one year before the expiry of the initial or any subsequent period, either Contracting Party to the other in the notifu writing of its intention to terminate this agreement. 3. In respect of investments made prior to the termination of this agreement, the provision of this Agreement shall continue to be effective for a period of ten years from the date of termination. In WITNESS WHEREOF, the undersigned duly authorized the theret have signed this agreement. Done in duplicate at Vilnius this 7 day of February, 1996, in the Latvian, Estonian and English languages, all texts being equally authentic. In case of any divergenc of interpretation, the English text shall prevails.

For the Government For the Government of the Republic of Latvia of the Republic of Estonia