Sayfa : 6 RESMI GAZETE 11 ~ubat 1995- Sayt : 22199 ======~=--- Agreement Between The Republic of Turkey and Tbe Republic of Kazakhstan Concerning the Reciprocal Promotion and Protection of Investments The RepubHc of Turkey aod The Repub6c or Kazakhstan, hereinafter caUed the Parties. Desiring to promote greater economic cooperation between them, particularly with respect to investment by investors of one Party in the territory of the other Party. Recognizing that agreement upon the treatment to be accorded such investment wiD stimulate the flow of capital and technoloay aod the economic developments of the Parties. Aareeins that fair and equitable treatment of investment is desirable in order to maintain a stable framework for investment and maximum eff'ective utilization of ~c resources, and Having resolved to conclude ao agreement concernioa the encouraaement aod reciprocal protection of investments, Hereby agree as foDows: ARTICLE I Definitions For the purpose of this Agreement; 1. The term "investor" means: (a) natural persons derivina their status as nationals of eith.- Party accordina to ill applicable Jaw, (b) corporations, flliDS or business associatioos iocorporated or constituted IUldor tile law in force or either or the Parties and having their headquarters in the territory of that l'lrty. 2. The term "investment", in conformity with the bostiDa Party's Laws and Requla tions, shall include every kind of asset in particular, but not exclusively: i) shares, stocks or any other form of participation in companies, ii) returns reinvested, claims to money or any other riahts to Ieaitimate performance havint financial value related to an investment, ili) movable and Immovable property, u weD as aoy other n,bts in rem oach as mortgages, liens, plecJ,es and any other similar riahts. iv) copyriahts, iodUJtrial and intelleclual property ri&hts ouch u patellts, llceales, in dustrial designs, technical processes, u well u trademarks, goodwill, know-how and other similar rights, v) business concessioos conf~ ~law or bY contlact, incluclina concessions to search for, cultivate extract or a:ploit natural resourca on the territory of each Party u def"tned hereafter. 3. The term "returns" means the amounts yielded by an investment and includes in particular, though not a:clusively, profit, interest, and diVidends. · 4. The term uterritory" includeS tbt land' bouncfaiies, mlritime Areas and the COD· tinental shelf delimited by mutual agreement between the parties concerned over which the Party hosting the investment-haS sovtteip.dahts or jurisdictiob in accordance with interna· tionallaw. · .... ,_, J<;. ,-,,_ · ·• .... • ARTICLE II Promotion and Protection of Investments l. Each Party shall permit in its territory investments, and activities associated therewith, on a basis no Jess favOurable than that accorded in similar sltuaiions to investments of investors of any third country, within the framework· of its laws and regulations.
YQrQtme ve ldare B4Ulmll Say fa : 6 • 11 $ubat 1995- Sa)'l : 22!99 RESMI GAZETI! Sayfa : 7
2. Each Party shall accord to these investments, once established, treatment no less favourable than that accorded in similar situations to investments of its investors or to in vestments of investors of any third country, whichever is the most favourable. 3. Subject to the laws and regulations oft he parties relating to the entry, sojourn and employment of aliens; (a) nationals of either Party shall be penniued to enter and remain in the territory of the other Party for purposes of establisbiaa, cle¥elopiq, administering or advising on the ' operation of an investment to which tbeJ, or an investor of the first Party that employs them, have committed or are in the process of coamtiUiDa a substantial amount of capital or other resources, (b) companies wbicb areleplly coDJtitutecl UDder the applicable laws and resulation.s of one Party, and which are investDleDtl of investors of other Pany, shall be permitted to engage managerial and technical personnel of their choice, reprdless of nationality. 4. The provisions of tbis Article shall have DO effect in relation to following agreements entered into by either .of the Parties. (a) relatins to any existina or future custom1 unions, regional economic organization or similar international agreements, (b) relating wholly or mainly to taxation. ARTICLE Ill Expropriation and Compensation 1. Investments shall not be expropriated, nationalized or subject directly or iDdirect ly, to measures of similar ,effect except for a pubUc purpo5e, in a non-discriminatory manner, upon payment of pfompt, adequate and effective compensation, and in accordance with due process of law and the seneral principles of treatment provided for in Article II of this Agreement. 2. Coinpensation shall be equivalent to the real value of the expropriated investment before the expropriatory action was taken or became known Compensation shaD be paid without delay and be freely transferable as described in para. 2 Article 4. 3. Investors of either Party whose investments suffer losses in the territory of the other Party owing to war, insurrection, civil disturbaDCe or other similar events sbaU be accorded by such other Party treatment not less favourable than that accorded to iu own inveoton or the investort of and third country, --whichever is the mOlt favourable trw',...., u rflll'ds any measures it adopts in relation to such louel. ARTICLE IV Repatriation and TWII(er 1. Each Party shall permit in good faith an tran.sfen relatecl to an investment to be made freely and without umeasonable delay iDto and out or its territory, ouch transfers iDdude: (a) retums, (b) proceeds from the sale or Uquidatlon or an or any part or an investmeat. (c) compeoaation punuant to Article Ill. (d) reimbursements and inte ARTICLE V Subrogation I. If the investment of an investor of one Party is insured against non-commercial risks under a system established by law, any subroaation of the insurer which stems from the terms of the insurance agreement shall be recoanized by the other Party. 2. The insurer shall not be entitled to exercise any rights other than the rights which the investor would have been entided. to exercise. 3. Disputes between a Party and an iDSUM sball be setUed in accordaoce with the provisions of Article Vll of this Aareemeot. ARTICLE VI Der01ation This aareement shall not deropte from: (a) laws and requlations, administrative practices or proCedures or administrative or adjudicatory decisions of either Party, ' (b) .international legal obliaatioos, or (c) obliptions assumed by either Party, includina those contained in an investment agreement or an investment authorization, that entitle investments or associated activities to treatment more favourable than that accorded by this Agreement in Hke situations. ARTICLE VII Settlement of Disputes Between One Party and Investors of the Other Party 1. Disputes between one of the Parties and one investor of.t.be other Party, in CODIIII• ti_on with his investment, shall be notified in writing, includina a, detailed information, by·· investor to the recipient Party of the investment. As far as possible, the investor and tM -~ cerned Party shall endeavour to settle these disputes by consultations and nesoUations iD ....~ faith. 2. If these disputes cannot be se!Oed in this way within six months follo..U..Iill dlllo of the written notification mentioned in parqrapb 1,-the dispute can be submitted, u tbe investor may choose, to: · (a) thelnteroatiooal Center for Settlement of lovestment Disputes (ICSID) Itt up by the "Convention on Settlement of Investment Dlsputes Qetween States and N.Uouls of Other States", (in case both Parties become sianatories of~ Convention.) (b) an ad hoc court of arbitration laid down UDder the Arbitration Rules of Procedure of the United Nations Commission for International Trade Law (UNClTRAL), (in case both parties are members of U.N.) · (c) the Court of Arbitration of the Paris international Chamber of Commerce, provided that, if the investor concerned has brought the dispute before the courts of justice of the Party that is a party to the dispute and a final award has not been rendered within one year. 3. The arbitration awards shall be final and bindins for all parties in dispute. Each Party commits itself to execute the award acwrdina to its national law. ARTICLE VIII Settlemeot of Disputes· Between tbe Parties I. The Parties sluill seek in &ood faith and i spirit of cooperation a rapid and equitable solution to any dispute between them concernina: tbe interpretation or application ·or this Agree· ment. In this regard, the Parties aaree to eolaae·in-dii'ect and meaningful neaotiations to ar· rive at such solutions. If the Parties cannot reach an aareement within six mOTttbs after the besinning or dispute between themselves through the roreaoins procedure, the dispute may be submlued, upon the request of dther Party, to an arbitral tribuoal of Lbree members. Yllrfltme we Jdate BOIQmD Sayfa : I ll Subat 199S- Sa)'l: 22199 RESMI GAZJ!TI> Sayfa : 9 2. Within two months of receipt of a request, each Party shall appoint an arbitrator. The two arbitrators shall select a third arbitrator as Chairman, who is a national of a third State. In the event either Party fails to appoint an arbitrator within the specified time, the other Party may request the President of the International Court of Justice to make the ap pointment. 3. If both ubitraton cannot reac:h an aareement about the choice of the Chairman within two months after their appointment, the Chairman shall be appointed upon the re quest of either Party by tbe President of the lateraational Court of Justice. 4. If, in the cases specified under paroaraphs (2) IUid (3) of this Article, the Presideot of the International Court of Justice is prevented from carryina out the said fuDCtion or if he is a national of either Party, the appointment Jball be made by the V~President, and if the Vice-President is prevented from carryina out the said fuDCtion or if be is a national of either Party, the appointmeot shall be made by the most tali« member of the Court wbo is not a national of either Party. S. The tribunal shal have three months from the date of the selection of the Chair· man to agree upon rules of procedure colllistent with the other prcMiioDI of tbil .,...ement. In the absence of such qreement, the tribunalshall requeot the President of tholn-tlonal Court of Justice to desisJ>ate rules of procedure, takina into ....,..nt ..-aJiy recoanizecl rulea of international arbitral procedure. 6. Unless otherwise qreecl, all submissions shall be made and all hoariniS obaJI bec:omp leted within eight months of the elate or selection or the thin! arbitrato< ,lllld the tribunal ohaD reoder its decision within two months after the elate or the final submissions ... the elate or the closiJll of the hearings, whichever is !at«. Tbe arbitral tribunal shall reach its clecloi-, which shall be final and bindina, by a majority of votes. 7. Expenses incurrocl by the Chairman, tho other arbitraton, and other costs of the proceedings shall be paid for equaHy by the Parties. The tribunal may, bowover, It its cllscre tion, decide that a higher proportion of the costs be paid by one or the Parties. 8. A dispute shall not be submitted to an international arbitration court under tbe provisions of this Article, if the same dispute hu been brouabt before another interutioual arbitration court under tbe provisioos of Artide vn and is still before the court. This wiU not impair the ensaaement in direct and meaDiD&f\d De&Otiations between both Parties. ARTICLE IX Enterinc into Force 1. This AJI'eement shall ent« Into force on the date on which the •chanp of instruments of ratification has been completed. It ohaD remain in force for a period of ten years and shall continue in force unloos tonninlted in accordance with parqrapb Z of this Article. It shall apply to inv.Stments oxistilll It the time or entry into f«ce .. well .. to in vestments made or acquired thereafter. 2. Either Party may, by sivina one year's writteD.notice to the other Party, terminate this Agreement at the end of the initial teD year period or at any time thereafter. 3. This AJreement may be arneoded by written qreemeot between the Parties. Any amendment shall eoter into force when each Porty has notified the other that it has completecl all internal requirements for entry into force of such ameaclment. 4. With respect to investments made or acquired prior to the date of termination of this Agreement and to wbich this Aa;reemeot otherwise applies, the provisions of aD of the other Articles of this AJI'eement shall thereafter continue to be effective for a further period of ten years from such date of termination. IN WITNESS WHEREOF, the respective plenipotentiaries have sianed this A,reement. DONE at Alma Ata on the day of 1 May 1992 in two authentic copies each in Turkish, Kazak, English and Russian. FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF THE REPUBLIC OF TURKEY THE REPUBLIC OF KAZAKHSTAN Yllriltmeve ldare BOI.am.G5Qfa: 9