Reference
The agreement was signed in Astrakhan on 29 September 2014.
The agreement provides for most-favoured-nation treatment for investors of both countries, with both sides ensuring the investments will be treated no less favourably than those of its own investors or investors of third countries.
The agreement also protects investments against seizure – nationalisation, expropriation or measures with similar consequences with the exception of cases when such measures are taken in the public interest and in compliance with the procedure established by the laws of the respective contracting parties.
The agreement creates a mechanism for protecting investments against seizure and providing compensation for damages incurred. It also provides legal remedies to investors, envisages procedures for the resolution of investment disputes, including the right to refer to international arbitration, and guarantees the unimpeded transfer of revenues and other investment-related payments.
To enhance the protection of investments that have already been made or will be made in the near future, the agreement covers investments made after 1 January 1992, not from the time of entry into force as envisaged in a Government-approved agreement template for this type of agreement.
Article 10 of the agreement commits the contracting parties to provide more favourable treatment to investors than the agreement mandates if stipulated by the laws or international treaties of the contracting parties.