agreement between the united states of america and azerbaijan

15
________________________________________________________________________ TREATIES AND OTHER INTERNATIONAL ACTS SERIES 95-117 FINANCE Investment Guaranties Agreement Between the UNITED STATES OF AMERICA and AZERBAIJAN Signed at Washington September 28, 1992

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Page 1: Agreement Between the UNITED STATES OF AMERICA and AZERBAIJAN

________________________________________________________________________

TREATIES AND OTHER INTERNATIONAL ACTS SERIES 95-117

FINANCE

Investment Guaranties

Agreement Between the

UNITED STATES OF AMERICA

and AZERBAIJAN

Signed at Washington September 28 1992

NOTE BY THE DEPARTMENT OF STATE

Pursuant to Public Law 89mdash497 approved July 8 1966 (80 Stat 271 1 USC 113)mdash

ldquo the Treaties and Other International Acts Series issued under the authority of the Secretary of State shall be competent evidence of the treaties international agreements other than treaties and proclamations by the President of such treaties and international agreements other than treaties as the case may be therein contained in all the courts of law and equity and of maritime jurisdiction and in all the tribunals and public offices of the United States and of the several States without any further proof or authentication thereofrdquo

AZERBAIJAN

Finance Investment Guaranties

Agreement signed at Washington September 28 1992 Entered into force January 17 1995

INVESTMENT INCENTIVE AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA

AND THE GOVERNMENT OF AZERBAIJAN

The Government of the United States of America and the

Government of Azerbaijan

Affirming their common desire to encourage economic

activities in Azerbaijan which promote the development of the

economic resources and productive capacities of Azerbaijan and

Recognizing that this objective can be promoted through

investment insurance (including reinsurance) loans and

investment guaranties which are backed in whole or in part by the

Government of the United States of America and provided by the

Overseas Private Investment Corporation (OPIC) an agency of

the Government of the United States of America

Have agreed as follows

ARTICLE 1

As used in this Agreement the term Coverage shall refer

to any investment insurance reinsurance or investment

guaranty which is provided by an Issuer in connection with a

project in the territory of Azerbaijan and the term

Issuer shall refer to OPIC any successor agency of the

Government of the United States of America and the agent of

either

- 2 -

ARTICLE 2

(a) (i) If the Issuer makes payment to any party under

Coverage the Government of Azerbaijan shall subject

to the provisions of Article 3 of this Agreement

recognize the transfer to the Issuer of any assets

including those in the form of investment as well as

currency or credits in connection with such payment

as well as the succession of the Issuer to any right

title claim privilege or cause of action existing

or which may arise in connection therewith

(ii) If the Issuer in the exercise of its rights

as a creditor acquires any such assets or succeeds to

any right title claim privilege or cause of action

the Government of Azerbaijan shall subject to the

provisions of Article 3 of this Agreement recognize

such acquisition or succession

(b) The Issuer shall assert no greater rights than

those of the party from whom such rights were acquired as

described in paragraph (a) of this Article

(c) The Issuer as a non-commercial agency of the

Government of the United States of America shall not be

subject to regulation under the laws of Azerbaijan

applicable to commercial insurance or financial

organizations (d) Interest and fees on loans made or

guaranteed by the Issuer shall be exempt from tax in

Azerbaijan The Issuer shall not be subject to tax in

- 3 -

Azerbaijan relating to any transfer succession or other

acquisition described in paragraph (a) of this Article In

all other cases tax treatment of transactions conducted by

the Issuer in Azerbaijan as well as tax liabilities

existing prior to such transfer succession or other

acquisition shall be determined by applicable law of

Azerbaijan or any applicable specific agreement between the

Governme nt of the United Sta tes and the Government of

Azerbaijan

ARTICLE 3

To the extent that the laws of Azerbaijan partially or

wholly invalidate o r prohibit the transfer succession or

other a cquisition as described in Ar ticle 2(a) o f this

Agre ement o f any interes t in any p r operty within t h e

territory of Azerbaijan by the Issuer the Government of

Azerbai jan shall permit t he Issuer to make appropr i a te

arrangeme n ts pursuant to which s u ch interests a re

transferred to a person or entity permitted to own such

i nteres t s under the laws o f Azerba ijan

ARTICLE 4

(a) Amount s in the c u rren cy of Azerba ijan inc luding

credits t h e reof acquired by t he Issuer in connecti o n with

paymen t t o a part y under Cov e rage s h a l l be accord ed

t r eatment in the ter ritory of Azerba ijan no less f avorable

- 4 -

as to use and conversion than the treatment to which such

funds would be entitled in the hands of the party under

Coverage

(b) Such amounts and credits may be transferred by the

Issuer to any person or entity and upon such transfer shall

be freely available for use by such person or entity in the

territory of Azerbaijan in accordance with its laws

(c) The provisions of this Article shall also apply to

any amounts and credits in the currency of Azerbaijan which

may be accepted by the Issuer in settlement of obligations

with respect to loans made by the Issuer for projects in

Azerbaijan

ARTICLE 5

(a) Any dispute between the Government of the United

States of America and the Government of Azerbaijan regarding

the interpretation of this Agreement or which in the

opinion of one of the Governments presents a question of

international law arising out of any project or activity for

which Coverage has been issued shall be resolved insofar as

possible through negotiations between the two Governments

If at the end of six months following the request for

negotiations the two Governments have not resolved the

dispute by agreement the dispute including the question of

whether such dispute presents a question of international

law shall be submitted at the initiative of either

- 5 -

Government to an arbitral tribunal for resolution in

accordance with paragraph (b) of this Article

(b) The arbitral tribunal referred to in paragraph (a)

of this Article shall be established and function as

follows

(i) Each Government shall appoint one arbitrator

these two arbitrators shall by agreement designate a

president of the arbitral tribunal who shall be a

citizen of a third state and whose appointment shall be

subject to acceptance by the two Governments The

arbitrators shall be appointed within three months and

the president within six months of the date of receipt

of either Governments request for arbitration If the

appointments are not made within the foregoing time

limits either Government may in the absence of any

other agreement request the Secretary-General of the

Permanent Court of Arbitration to make the necessary

appointment or appointments and both Governments agree

to accept such appointment or appointments

(ii) The arbitral tribunal shall base its

decision on the applicable principles and rules of

international law The arbitral tribunal shall decide

by majority vote Its decision shall be final and

binding

( iii ) During the proceedings each of the

Governments shall pay the expense of its arbitrator and

- 6 -

of its representation in the proceedings before the

arbitral tribunal whereas the expenses of the

president and other costs of arbitration shall be paid

in equal parts by the two Governments In its award

the arbitral tribunal may in its discretion

reallocate expenses and costs between the two

Governments

(iv) In all other matters the arbitral tribunal

shall regulate its own procedures

(c) Nothing in this Agreement shall limit the right of

the Government of the United States of America to assert a

claim under international law in its sovereign capacity as

distinct from any rights of the Issuer

ARTICLE 6

The two Governments desiring reciprocity agree that

in the event the Government of Azerbaijan makes arrangements

to issue Coverage or make loans for projects in the United

States of America under a program similar in substance to

the investment incentive program to which this Agreement

relates provisions equivalent to those of this Agreement

shall apply with respect to such arrangements upon

completion of the constitutional or other legal processes of

both Governments approving such provisions

- 7 -

ARTICLE 7

This Agreement shall continue in force until the

expiration of twelve months from the date on which either

Government shall have given written notice of termination of

this Agreement to the other Provided that in respect of

Coverage issued or loans made at any time before the

termination of this Agreement its provisions shall continue

in effect with respect to such Coverage or loans for a

period of twenty years after the date of termination of this

Agreement

This Agreement shall enter into force on the date on which

the Government of Azerbaijan notifies the Government of the

United States of America that all necessary legal requirements

for entry into force of this Agreement have been fulfilled

Done at Washington on the 28th day of September 1992 in

duplicate in the English language An Azerbaijan language text

shall be prepared which shall be signed in Baku and shall be

considered equally authentic

For the Government of For the Government of THE UNITED STATES OF AMERICA AZERBAIJAN

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IDI ceHTja6p11H 28-na HM3aJlaHMhlill Ca3Hma MYBaqmr maKHJlla ha3hlpJlaHMhlillJl1Ip

AMEPHKA ElfPJigIIIMHIII A3gPEAJIAH PECIIYEJIHKACbl

IIITATJIAPbl h8KYMgTJ1

EaKhI mahapH 1993-qy IDI neKa6p11H 14

5

Page 2: Agreement Between the UNITED STATES OF AMERICA and AZERBAIJAN

NOTE BY THE DEPARTMENT OF STATE

Pursuant to Public Law 89mdash497 approved July 8 1966 (80 Stat 271 1 USC 113)mdash

ldquo the Treaties and Other International Acts Series issued under the authority of the Secretary of State shall be competent evidence of the treaties international agreements other than treaties and proclamations by the President of such treaties and international agreements other than treaties as the case may be therein contained in all the courts of law and equity and of maritime jurisdiction and in all the tribunals and public offices of the United States and of the several States without any further proof or authentication thereofrdquo

AZERBAIJAN

Finance Investment Guaranties

Agreement signed at Washington September 28 1992 Entered into force January 17 1995

INVESTMENT INCENTIVE AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA

AND THE GOVERNMENT OF AZERBAIJAN

The Government of the United States of America and the

Government of Azerbaijan

Affirming their common desire to encourage economic

activities in Azerbaijan which promote the development of the

economic resources and productive capacities of Azerbaijan and

Recognizing that this objective can be promoted through

investment insurance (including reinsurance) loans and

investment guaranties which are backed in whole or in part by the

Government of the United States of America and provided by the

Overseas Private Investment Corporation (OPIC) an agency of

the Government of the United States of America

Have agreed as follows

ARTICLE 1

As used in this Agreement the term Coverage shall refer

to any investment insurance reinsurance or investment

guaranty which is provided by an Issuer in connection with a

project in the territory of Azerbaijan and the term

Issuer shall refer to OPIC any successor agency of the

Government of the United States of America and the agent of

either

- 2 -

ARTICLE 2

(a) (i) If the Issuer makes payment to any party under

Coverage the Government of Azerbaijan shall subject

to the provisions of Article 3 of this Agreement

recognize the transfer to the Issuer of any assets

including those in the form of investment as well as

currency or credits in connection with such payment

as well as the succession of the Issuer to any right

title claim privilege or cause of action existing

or which may arise in connection therewith

(ii) If the Issuer in the exercise of its rights

as a creditor acquires any such assets or succeeds to

any right title claim privilege or cause of action

the Government of Azerbaijan shall subject to the

provisions of Article 3 of this Agreement recognize

such acquisition or succession

(b) The Issuer shall assert no greater rights than

those of the party from whom such rights were acquired as

described in paragraph (a) of this Article

(c) The Issuer as a non-commercial agency of the

Government of the United States of America shall not be

subject to regulation under the laws of Azerbaijan

applicable to commercial insurance or financial

organizations (d) Interest and fees on loans made or

guaranteed by the Issuer shall be exempt from tax in

Azerbaijan The Issuer shall not be subject to tax in

- 3 -

Azerbaijan relating to any transfer succession or other

acquisition described in paragraph (a) of this Article In

all other cases tax treatment of transactions conducted by

the Issuer in Azerbaijan as well as tax liabilities

existing prior to such transfer succession or other

acquisition shall be determined by applicable law of

Azerbaijan or any applicable specific agreement between the

Governme nt of the United Sta tes and the Government of

Azerbaijan

ARTICLE 3

To the extent that the laws of Azerbaijan partially or

wholly invalidate o r prohibit the transfer succession or

other a cquisition as described in Ar ticle 2(a) o f this

Agre ement o f any interes t in any p r operty within t h e

territory of Azerbaijan by the Issuer the Government of

Azerbai jan shall permit t he Issuer to make appropr i a te

arrangeme n ts pursuant to which s u ch interests a re

transferred to a person or entity permitted to own such

i nteres t s under the laws o f Azerba ijan

ARTICLE 4

(a) Amount s in the c u rren cy of Azerba ijan inc luding

credits t h e reof acquired by t he Issuer in connecti o n with

paymen t t o a part y under Cov e rage s h a l l be accord ed

t r eatment in the ter ritory of Azerba ijan no less f avorable

- 4 -

as to use and conversion than the treatment to which such

funds would be entitled in the hands of the party under

Coverage

(b) Such amounts and credits may be transferred by the

Issuer to any person or entity and upon such transfer shall

be freely available for use by such person or entity in the

territory of Azerbaijan in accordance with its laws

(c) The provisions of this Article shall also apply to

any amounts and credits in the currency of Azerbaijan which

may be accepted by the Issuer in settlement of obligations

with respect to loans made by the Issuer for projects in

Azerbaijan

ARTICLE 5

(a) Any dispute between the Government of the United

States of America and the Government of Azerbaijan regarding

the interpretation of this Agreement or which in the

opinion of one of the Governments presents a question of

international law arising out of any project or activity for

which Coverage has been issued shall be resolved insofar as

possible through negotiations between the two Governments

If at the end of six months following the request for

negotiations the two Governments have not resolved the

dispute by agreement the dispute including the question of

whether such dispute presents a question of international

law shall be submitted at the initiative of either

- 5 -

Government to an arbitral tribunal for resolution in

accordance with paragraph (b) of this Article

(b) The arbitral tribunal referred to in paragraph (a)

of this Article shall be established and function as

follows

(i) Each Government shall appoint one arbitrator

these two arbitrators shall by agreement designate a

president of the arbitral tribunal who shall be a

citizen of a third state and whose appointment shall be

subject to acceptance by the two Governments The

arbitrators shall be appointed within three months and

the president within six months of the date of receipt

of either Governments request for arbitration If the

appointments are not made within the foregoing time

limits either Government may in the absence of any

other agreement request the Secretary-General of the

Permanent Court of Arbitration to make the necessary

appointment or appointments and both Governments agree

to accept such appointment or appointments

(ii) The arbitral tribunal shall base its

decision on the applicable principles and rules of

international law The arbitral tribunal shall decide

by majority vote Its decision shall be final and

binding

( iii ) During the proceedings each of the

Governments shall pay the expense of its arbitrator and

- 6 -

of its representation in the proceedings before the

arbitral tribunal whereas the expenses of the

president and other costs of arbitration shall be paid

in equal parts by the two Governments In its award

the arbitral tribunal may in its discretion

reallocate expenses and costs between the two

Governments

(iv) In all other matters the arbitral tribunal

shall regulate its own procedures

(c) Nothing in this Agreement shall limit the right of

the Government of the United States of America to assert a

claim under international law in its sovereign capacity as

distinct from any rights of the Issuer

ARTICLE 6

The two Governments desiring reciprocity agree that

in the event the Government of Azerbaijan makes arrangements

to issue Coverage or make loans for projects in the United

States of America under a program similar in substance to

the investment incentive program to which this Agreement

relates provisions equivalent to those of this Agreement

shall apply with respect to such arrangements upon

completion of the constitutional or other legal processes of

both Governments approving such provisions

- 7 -

ARTICLE 7

This Agreement shall continue in force until the

expiration of twelve months from the date on which either

Government shall have given written notice of termination of

this Agreement to the other Provided that in respect of

Coverage issued or loans made at any time before the

termination of this Agreement its provisions shall continue

in effect with respect to such Coverage or loans for a

period of twenty years after the date of termination of this

Agreement

This Agreement shall enter into force on the date on which

the Government of Azerbaijan notifies the Government of the

United States of America that all necessary legal requirements

for entry into force of this Agreement have been fulfilled

Done at Washington on the 28th day of September 1992 in

duplicate in the English language An Azerbaijan language text

shall be prepared which shall be signed in Baku and shall be

considered equally authentic

For the Government of For the Government of THE UNITED STATES OF AMERICA AZERBAIJAN

AMEPHKA EHPJigIIIMHIII IIITATJIAPbl h8KYMgTJ1 HJig

A3gPEAJTIAH PECilYEJIHKACbl h8KYMgTJ1 APAChlH)lA KAI1HTAJI

ffiJYJIYIIIYHA KeMgK hAITblH)lA

CA3HIII

AMepHKa EHpJiaIIIMIDII IIIrnrnap1gt1 heK)MaTH Ba A3ap6ajqaJI Pecny6JIHKac1gt1

h0K)MaTH

A3ap6ajTJaH Pecny6JIHKaCbIHUa HITHCaUH ehTHjarnapbIH Ba HCTehCaJI IlOTeHCHaJihIHblH

HHKmrracpbIHa K0MaK enaH TacappycpaT ltpaaJIHjjaTHHa paBaTJ BepMaK ap3YCYHUa jeKUHJI

onnyrnap1gtIHhI 6ajaH euapaK

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eTnHjH Ba AMepHKa EHpJiaIIIMHIII lliTaTJiapbI heK)MaTHHHH axeHTJIHjH OJiaH XapHliilI XycycH

HHBeCTHcHjanap KoprropacHjac1gtrn1gtrn (Overseas Private Investment Corporation) (OllHK)

HDapa eTIJHjH KaITHTaJI rojyJiyIIIYHYH CbIFOpTaJiaHMaCblHhIH 0 IYMJiaDaH TaKpap

ChIFOpTaJiaHMaCblHhIH 6opqnap Ba 3aMaHaTJiap BepHJIMaCHHHH haMHH Marcaua qaTMaFa KeMaK

ena 6HJialajHHH TacnHr enapaK

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Ta11

Ey Ca3HIIIDa 11

MHHaT TepMHHH EMHTeHTHH11

BepnHjH Ba A3ap6ajTJaH apa3HCHHDa

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haHCbl axeHTJIHjHH Ba 6YHJiapnaH hap haHCbl 6HpHHHH caJiahHjjaTJIH HYMajaHnacHHa aMDDHp

(a) (I) g1Cap EMHTeHT TaMHHaTUaH HCTHltpaUa enaH hap haHCbl TapacpHH xejpHHa

enaHHIII hajaTa KeqHpapca A3ap6ajTJaH h0K)MaTH 6y Ca3HIIIHH 3-TJy MaUDacHHHH

MVULJaaJiap1gtIH1gt1 Ha3apa anapar EMHTeHTa TaMHHaT acac1gtrnna enaHHIIIHH hajaTa KeqHpHJIMacH

HJia 6aFJihl OJiaH hap haHCbl aMJiaK capBaTJiapH 0 IYMJiaUaH KaIDITaJI rojynyIIIy IIYJI BaCaHTH

Ba ja 6ena Kperorrnap KY3aIIIT e)lIDIUHjHHII ha6ena 6yttyima 6aFJ1bI hap haHCbI hyryr

MYJIKHjjaT hyryry H)lrolanap HMTHja3Jiap Baja 6yttyima anara)lap onapar Mej)laHa 1JbIXaH Baja

Mej)laHa 1Ihixa 6HJ1alaK MahKaMa HZIUHaCbI HpanH cypMaK yqytt acacnap 6apacmma EMHTeHTHH

hyryr BapHCJ1HjHHH Tac)lIIT erorp

(II) gKap EMHTeHT Kpe)llfTOp KHMH 03 hyryrnapbIHbl hajaTa Ke~rnpapKaH hap haHCbl

aMJ1aK capBarnapH anapca Ba ja hap haHCbI hyryrnapbIH MYJIKHjjar H)lJlHanap HMTHja3Jiap

hyryrytt)H Ba ja MahKaMa HZIUHaCbI yqytt acacnapbIH BapHCHHa qeBpHJ1apca A3ap6ajlaH

h0K)7MaTH 6y Ca3HIIIHH 3-ly MaroiacHHa YiFYH onapar 6yimapbIH aJlbIH)lbIFbIHbl Ba ja MHpac

ran)lbIFbIHbl TaC)lHr ellHp

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KecTapmm1-1jH raj)la)la KY3amT eT)llfjH h yryrnapJlaH ycTytt h yryr Tana6 eTMajalaKJlHp

(B) AMepHKa EHpnaIIIMHIII lllTarnapbIHbIH rejpH-THJapaT ruceHTJ1HjH KHMH EMHTeHT

6apaclfH)la THJapar CbIFoprncbI Ba ManHjja TaIIIKlfJlarnapbrna aHJl e)llfJlaH Ba A3ap6ajJaH

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cpamnap Ba e)laManap A3ap6ajJaH)la BepKHJ1apllaH a3a)l e)llfJlaJaK)lHp (a) rraparpacp1rna

MYBaltp11r cypar)la hyryrnapbIH 6aIIIracbIHa BepHJ1Mac1-1 hyryr BapHcnHjH Ba ja JlHKap

hyryrnapbrn an)la e)lHJ1MacHHa Kepa EMHTeHTJlaH A3ap6ajJaH)la BepKH TYTYJ1MajaJar)lbip

EMHTeHTIIH A3ap6ajJaH)la hajaTa Keq11p)lHjH 6aIIIra aMan11jjarnapbIH BepKH pe)KHMH ha6ena

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e)llfJlMaCHH)laH Ba ja 6amracbrna Ke~aCHHJlaH aBBaJ1KH BepKH eh)laJ1HKJ1apH A3ap6ajJaH

Pecrry6nHKaCbIHbIH ryBBa)la ony6 TaT6Hr e)llfJlaH raHyttBepHJlfJlHjH lfJla Ba AMepHKa

EHpnaIIIMHIII IIITarnapbI heK)MaTH HJ1a A3ap6ajJaH Pecrry6nHKaCbIHbIH heK)MaTH apacbIH)la

xycycH Ca3Hm 6aFnaHapca haMHH Ca3HIIIJ1a ~jjaH e)llfJlaJaK)lHp

Maroia 3

Ey Ca3HIIIBH 2 (a) MarolaCHH)la K0CTaplfJ1)lHjH KHMH A3ap6ajJaH Pecrry6nHKaCbl

apa3HCHH)la EMHTeHT TapaltplfH)laH hap haHCbl MYJIKHjjaTHH hap haHCbl rrajbIHbIH

BeplfJlMaCHHHH MHpac rojynMaCbIHbIH an)la e)llfJlMaCHHIIH A3ap6ajJaH Pecrry6nHKaCbl

raHyimapbI lfJla mcMaH Ba TaM e11TH6apcbI3 heca6 e)llfJlMacH Ba jaxYJl ra)laFaH onyttMaCbI

Tar)llfp)la A3ap6ajqaH Pecrry6nHKaCbl h0K)7MaTH EMHTeHTa haMHH rrajbIHbl A3ap6ajJaH

raHyimapbrna Kepa 6ena rraja MaJlHK onMar hyryry ltpH3HKH Ba hyryrH maxcnapa BepHJ1MacH

yqytt YiFYH Ta)l6Hpnap K0pMaja HJa3a BepHp

2

(a) EMHTeHTIIH 6eJia TaMHHaTJia anaranap onapar A3ap6aJqaH BaJijyracLI HJia

aJID1IFIJ BacaHTnaH o -qyMJianaH 6y Banjyra HJia aJIDJIFIJ Kpe)UITJiapnaH HCTHqgtana ezumMacH na

OHJiapLIH K81fYPYJIMOCH yqyH A3ap6aJqaH ap83HCHHDa TaMHHaTDaH HCTHqgtana enaH Tapaltpa

Maxcyc BacaHTa japaIUIllaH peXHM EMHTeHTa japaIUIJiaH pe)KHM]JaH helI na arrnepHIIICH3

oJIMajalamLIJgt

(6) EMHTeHT 6y BacaHTHH Ba Kpe)UITnapH hap haHCLI maxca sa ja TamKHJiaTa nepa

6HJiap Ba 6yayH acacLJ1ma haMHH maxc na ja TamKHJiaT oHJiapnm A3ap6aj-qm ap83Hcmma

OHH MaHacpejm1a xanan xampManaH sa OHH raHHBepINBJIHjHHa MYB3qnrr cypalna cap6acT

acrncpana ena 6HJialaKZJKP

(B) 4--qy MannaHHH MY)maanap11 haMlIHHHH A3ap6ajlaHlla najmianap yqyH EMHTeHTHH

TalZJHM ernujH 6opIJiap YJpa ab)laJIHKJiapHH TaH3HMJiaHMacmma EMHTeHTHH A3ap6ajlaH

BaJijyrac11 HJia ra6yn ena 6HJialajH Ma6narnapa Ba Kpe)UITnapa na maMHJI eDHJialaKlJHP

(a) AMepHKa EapnamMHIII IllTaTJiap1gt1HLIH haxyMam Ba A3ap6ajlaH Pecny6mmac11

haKYMam apac1mna 6y C83HmHH TaqgtCHpHHa aH) OJiaH sa ja h8KYMalJiapnaH 6apHHHH

qgtHKpHHla Ta11MHHaTL1 aJILIHMLim hap haHCLI najmia sa ja cpaamrjjaI HJia anaranap onapar

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rapmLDILilJILI p83LDILif acac1mna MY(ahHcaHH apanaH raJIDJIpM83ca MY(ahHca o IYMJlanaH I

haMHH MY(ShHcaHHH 6ejHaJIXaJir hyryra aH) OJIY6-0JIMaMaCLI MacaJiacH 6y MaunaHHH (6)

naparpaltp1gtIHa MBaqnrr cypOOna apanm raJIDLipLDIMar yqyH h8KYMOOJiapnan hap haHCLI

6apHHHH Tama66ycy HJia MYHCHltpJiap MahKaMacHHa nepHJialaKZJKP

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raJIJUgtIpMar yqyH MlplCHltpJiap MahKaMacH amaFLruan1 rajnana jap3llLDiaar Ba HIIIJiajalaKZJHp

(1) hap h8K)MOO 6Hp MffCHltp Ta11jHH enalilaKlJHP Ey HKH MHCHltp rapmLDILIDThI

p83LDILif acacLIH)la hap HKH h8KYMOO TapacpmmaH TajHH e)lHJIMacH 6ajaHHJiaH na yqya-qy

neMalHH BaTalfllamLI OJiaH canp11 MyajjaHJiaIIJDHPHp MYffCHltpJiap yq aj ap3HlfJla caJlP 11ca

MplCHltpJiap MahKaMacmma apaIDZJIIpMa harnnma h8KyMOOJiapHH hap haHCLI 6apHHHH

MPaHam aJILIHllLIFLI xyel(aH em6apaH aJITLI aj ap3mma TajHH enHJIM~ Ey

3

NjHHaTJiap jyxaplJ)Ja llejHJiaH MY)])larnap ap3HHlla hajaTa KellHpHJIMa3ca 6amra pa3LDiaJIIMa

oJIMazu1ma h0KMaTJiapHH hap haHC1gt1 6HpH HlmecTHc11ja My68hllcarrapmnm apanaH

raJIlllIp1gtD1Mac11 Y3pa Uamm Ap611Tpax MahKaMacmnm Earn Kam6HHllaH X3hlllll ela 6HJiap

KH Jia3bIMH NjHHaTLI Baja NjHHarnap11 hajaTa KellHpCHH Ey haJIlla hap mm h0KMaT 6y

TajHHaTbI Baja Ta11jHHaTJiapLI ra6YJI eTMaja pa3LI OJIamplalllblp

(2) MYHCHltpJiap MahKaMacH 03 rapap1gt1Hlla 6ejHaJIXaJir hyryryH TaT611r ellHJiaH

rrpHHcinIJiapHHa Ba HOpMaJiap1rna acacJiaHalarllLlp MYfICHltpJiap MahKaMacH rapapLI cac

qoxnyry HJia ra6YJI ellllp OH)H rapap11 raTH oJialaIlllIp Ba heKMaH jepHHa jempHJIMaJIBIlllp

(3) TahIHIaT 3aMaH1gtI h0KMaTJiapHH hap 6HpH 03 MYHCHltpmnm xapIJiapmm Ba

MYHCHltpJiaH MahKaMacHHlla rrpocellYJ)JIampplla TaMcHJI OJIYHMac1rna xapIJiapH ellajalaK callp

yqyH xapIJiap Ba MYHCHltpJiap MahKaMacHHlla apamllbipMaHbm 6amra xapIJiap11 11ca HKH

h0KMaT TapaqgtHHllaH 6apa6ap hHccarrapJia ellaHHJialaK)Ulp MYfICHltpJiap MahKaMacH 03

rapapLIHlla xapIJiapHH Ba ellammIJiapHH mm h0KMaT apac1gt1Hlla 6eJIYIIInYPYJIMacmnm

rrponopc11jaJiapLIHLI 03 MYJI8h113acHHa Kapa llajmnruqgta 6HJiap

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rajllaJiapLIHLI ~jaH ellllp

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hap HKH h0KMaT rapIIllDILirnbI Ha3aKaT xaTHpHHa pa3LDla1Il1IpJiap KH aKap

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pa3bDlamMaJiapLI hap HKH h0KMaTHH 6ajaHMacH yqyH KOHCTIIT)7Cltja Ba llHKap raH)H

rrpocellYJ)aJiapLIHLI 6ama qaTllblpllblIllaH coHpa 6y Ca3mIIHH MY)])laaJiap11 HJia eKBHBaJieHT

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Mazma 7

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ja3LDILI xa6apllapJILir KeBllapllHjH KYffllaH em6apaH OH mm aj rypTapmanaK ryBBalla

4

Ey Ca3mrr OHYJI ryBBaCHHHH najaJmhlphIJIMac11 MlIThIHJla 6Hp h9KYMaTHH 6amrac1ma

ja31m11 xa6apnapn1ir xeimapmjH KYJIAaH eTH6apaH OH HKH aj ryprnpaHaiaK ryBBana

ranalarr(hlp Ey Ca3HIDHH ryBBaCH najaimiIphIJiaH3l(aK hap haHClI BaxTna BepIDiaH Ta 11 MHHaTa

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ranaarJllIp

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jeTHpJlHjHHH A3ap6ajlaH heKYMaTHHHH AMepHKa EHpnamMHID lliTaTnapMHhIH heKyMaTHHa

6HJllHPJlHjH KyH 6y Ca3Hill ryBBaja MHHalaKnHp

BamHHITOJma 1992-qH IDI ceHrja6p1m 28-na HKH Hycxana HHKIDIHC lIDIHJma

HM3aJJaHMhlilllhlp A3ap6ajqaH lHJlHfmaKH MaTH ha3h1pJlaHhI6 EaKhl mahapHHla HM3aJJaHaqar

Ba HHKHJlHC lIDIHHla HM3aJlaHMhlill Ca3HIDHH MaTHH IDia TaM YiFYH onaqarlhlp

A3gPEAJl+IAHAMEPHKA EHPJigIIIMHIII

PECIIYEJIHKACblHbIH h8KYMgTJ1IIITATJIAPblHbIH h8KYMgTJ1

TgpgltJgtlfHIlgHTgpgltJgtlfHIlgH

T rACblMOB ltlgtPEIl M 3EIlEP

MaH TaCJlHf enHpaM KH A3ap6ajqaH lHJlHHlaKH 6y TaM YiFYH MaTH 1992 - IH

IDI ceHTja6p11H 28-na HM3aJlaHMhlill Ca3Hma MYBaqmr maKHJlla ha3hlpJlaHMhlillJl1Ip

AMEPHKA ElfPJigIIIMHIII A3gPEAJIAH PECIIYEJIHKACbl

IIITATJIAPbl h8KYMgTJ1

EaKhI mahapH 1993-qy IDI neKa6p11H 14

5

Page 3: Agreement Between the UNITED STATES OF AMERICA and AZERBAIJAN

AZERBAIJAN

Finance Investment Guaranties

Agreement signed at Washington September 28 1992 Entered into force January 17 1995

INVESTMENT INCENTIVE AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA

AND THE GOVERNMENT OF AZERBAIJAN

The Government of the United States of America and the

Government of Azerbaijan

Affirming their common desire to encourage economic

activities in Azerbaijan which promote the development of the

economic resources and productive capacities of Azerbaijan and

Recognizing that this objective can be promoted through

investment insurance (including reinsurance) loans and

investment guaranties which are backed in whole or in part by the

Government of the United States of America and provided by the

Overseas Private Investment Corporation (OPIC) an agency of

the Government of the United States of America

Have agreed as follows

ARTICLE 1

As used in this Agreement the term Coverage shall refer

to any investment insurance reinsurance or investment

guaranty which is provided by an Issuer in connection with a

project in the territory of Azerbaijan and the term

Issuer shall refer to OPIC any successor agency of the

Government of the United States of America and the agent of

either

- 2 -

ARTICLE 2

(a) (i) If the Issuer makes payment to any party under

Coverage the Government of Azerbaijan shall subject

to the provisions of Article 3 of this Agreement

recognize the transfer to the Issuer of any assets

including those in the form of investment as well as

currency or credits in connection with such payment

as well as the succession of the Issuer to any right

title claim privilege or cause of action existing

or which may arise in connection therewith

(ii) If the Issuer in the exercise of its rights

as a creditor acquires any such assets or succeeds to

any right title claim privilege or cause of action

the Government of Azerbaijan shall subject to the

provisions of Article 3 of this Agreement recognize

such acquisition or succession

(b) The Issuer shall assert no greater rights than

those of the party from whom such rights were acquired as

described in paragraph (a) of this Article

(c) The Issuer as a non-commercial agency of the

Government of the United States of America shall not be

subject to regulation under the laws of Azerbaijan

applicable to commercial insurance or financial

organizations (d) Interest and fees on loans made or

guaranteed by the Issuer shall be exempt from tax in

Azerbaijan The Issuer shall not be subject to tax in

- 3 -

Azerbaijan relating to any transfer succession or other

acquisition described in paragraph (a) of this Article In

all other cases tax treatment of transactions conducted by

the Issuer in Azerbaijan as well as tax liabilities

existing prior to such transfer succession or other

acquisition shall be determined by applicable law of

Azerbaijan or any applicable specific agreement between the

Governme nt of the United Sta tes and the Government of

Azerbaijan

ARTICLE 3

To the extent that the laws of Azerbaijan partially or

wholly invalidate o r prohibit the transfer succession or

other a cquisition as described in Ar ticle 2(a) o f this

Agre ement o f any interes t in any p r operty within t h e

territory of Azerbaijan by the Issuer the Government of

Azerbai jan shall permit t he Issuer to make appropr i a te

arrangeme n ts pursuant to which s u ch interests a re

transferred to a person or entity permitted to own such

i nteres t s under the laws o f Azerba ijan

ARTICLE 4

(a) Amount s in the c u rren cy of Azerba ijan inc luding

credits t h e reof acquired by t he Issuer in connecti o n with

paymen t t o a part y under Cov e rage s h a l l be accord ed

t r eatment in the ter ritory of Azerba ijan no less f avorable

- 4 -

as to use and conversion than the treatment to which such

funds would be entitled in the hands of the party under

Coverage

(b) Such amounts and credits may be transferred by the

Issuer to any person or entity and upon such transfer shall

be freely available for use by such person or entity in the

territory of Azerbaijan in accordance with its laws

(c) The provisions of this Article shall also apply to

any amounts and credits in the currency of Azerbaijan which

may be accepted by the Issuer in settlement of obligations

with respect to loans made by the Issuer for projects in

Azerbaijan

ARTICLE 5

(a) Any dispute between the Government of the United

States of America and the Government of Azerbaijan regarding

the interpretation of this Agreement or which in the

opinion of one of the Governments presents a question of

international law arising out of any project or activity for

which Coverage has been issued shall be resolved insofar as

possible through negotiations between the two Governments

If at the end of six months following the request for

negotiations the two Governments have not resolved the

dispute by agreement the dispute including the question of

whether such dispute presents a question of international

law shall be submitted at the initiative of either

- 5 -

Government to an arbitral tribunal for resolution in

accordance with paragraph (b) of this Article

(b) The arbitral tribunal referred to in paragraph (a)

of this Article shall be established and function as

follows

(i) Each Government shall appoint one arbitrator

these two arbitrators shall by agreement designate a

president of the arbitral tribunal who shall be a

citizen of a third state and whose appointment shall be

subject to acceptance by the two Governments The

arbitrators shall be appointed within three months and

the president within six months of the date of receipt

of either Governments request for arbitration If the

appointments are not made within the foregoing time

limits either Government may in the absence of any

other agreement request the Secretary-General of the

Permanent Court of Arbitration to make the necessary

appointment or appointments and both Governments agree

to accept such appointment or appointments

(ii) The arbitral tribunal shall base its

decision on the applicable principles and rules of

international law The arbitral tribunal shall decide

by majority vote Its decision shall be final and

binding

( iii ) During the proceedings each of the

Governments shall pay the expense of its arbitrator and

- 6 -

of its representation in the proceedings before the

arbitral tribunal whereas the expenses of the

president and other costs of arbitration shall be paid

in equal parts by the two Governments In its award

the arbitral tribunal may in its discretion

reallocate expenses and costs between the two

Governments

(iv) In all other matters the arbitral tribunal

shall regulate its own procedures

(c) Nothing in this Agreement shall limit the right of

the Government of the United States of America to assert a

claim under international law in its sovereign capacity as

distinct from any rights of the Issuer

ARTICLE 6

The two Governments desiring reciprocity agree that

in the event the Government of Azerbaijan makes arrangements

to issue Coverage or make loans for projects in the United

States of America under a program similar in substance to

the investment incentive program to which this Agreement

relates provisions equivalent to those of this Agreement

shall apply with respect to such arrangements upon

completion of the constitutional or other legal processes of

both Governments approving such provisions

- 7 -

ARTICLE 7

This Agreement shall continue in force until the

expiration of twelve months from the date on which either

Government shall have given written notice of termination of

this Agreement to the other Provided that in respect of

Coverage issued or loans made at any time before the

termination of this Agreement its provisions shall continue

in effect with respect to such Coverage or loans for a

period of twenty years after the date of termination of this

Agreement

This Agreement shall enter into force on the date on which

the Government of Azerbaijan notifies the Government of the

United States of America that all necessary legal requirements

for entry into force of this Agreement have been fulfilled

Done at Washington on the 28th day of September 1992 in

duplicate in the English language An Azerbaijan language text

shall be prepared which shall be signed in Baku and shall be

considered equally authentic

For the Government of For the Government of THE UNITED STATES OF AMERICA AZERBAIJAN

AMEPHKA EHPJigIIIMHIII IIITATJIAPbl h8KYMgTJ1 HJig

A3gPEAJTIAH PECilYEJIHKACbl h8KYMgTJ1 APAChlH)lA KAI1HTAJI

ffiJYJIYIIIYHA KeMgK hAITblH)lA

CA3HIII

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h0K)MaTH

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HHKmrracpbIHa K0MaK enaH TacappycpaT ltpaaJIHjjaTHHa paBaTJ BepMaK ap3YCYHUa jeKUHJI

onnyrnap1gtIHhI 6ajaH euapaK

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eTnHjH Ba AMepHKa EHpJiaIIIMHIII lliTaTJiapbI heK)MaTHHHH axeHTJIHjH OJiaH XapHliilI XycycH

HHBeCTHcHjanap KoprropacHjac1gtrn1gtrn (Overseas Private Investment Corporation) (OllHK)

HDapa eTIJHjH KaITHTaJI rojyJiyIIIYHYH CbIFOpTaJiaHMaCblHhIH 0 IYMJiaDaH TaKpap

ChIFOpTaJiaHMaCblHhIH 6opqnap Ba 3aMaHaTJiap BepHJIMaCHHHH haMHH Marcaua qaTMaFa KeMaK

ena 6HJialajHHH TacnHr enapaK

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Ta11

Ey Ca3HIIIDa 11

MHHaT TepMHHH EMHTeHTHH11

BepnHjH Ba A3ap6ajTJaH apa3HCHHDa

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haHCbl axeHTJIHjHH Ba 6YHJiapnaH hap haHCbl 6HpHHHH caJiahHjjaTJIH HYMajaHnacHHa aMDDHp

(a) (I) g1Cap EMHTeHT TaMHHaTUaH HCTHltpaUa enaH hap haHCbl TapacpHH xejpHHa

enaHHIII hajaTa KeqHpapca A3ap6ajTJaH h0K)MaTH 6y Ca3HIIIHH 3-TJy MaUDacHHHH

MVULJaaJiap1gtIH1gt1 Ha3apa anapar EMHTeHTa TaMHHaT acac1gtrnna enaHHIIIHH hajaTa KeqHpHJIMacH

HJia 6aFJihl OJiaH hap haHCbl aMJiaK capBaTJiapH 0 IYMJiaUaH KaIDITaJI rojynyIIIy IIYJI BaCaHTH

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MYJIKHjjaT hyryry H)lrolanap HMTHja3Jiap Baja 6yttyima anara)lap onapar Mej)laHa 1JbIXaH Baja

Mej)laHa 1Ihixa 6HJ1alaK MahKaMa HZIUHaCbI HpanH cypMaK yqytt acacnap 6apacmma EMHTeHTHH

hyryr BapHCJ1HjHHH Tac)lIIT erorp

(II) gKap EMHTeHT Kpe)llfTOp KHMH 03 hyryrnapbIHbl hajaTa Ke~rnpapKaH hap haHCbl

aMJ1aK capBarnapH anapca Ba ja hap haHCbI hyryrnapbIH MYJIKHjjar H)lJlHanap HMTHja3Jiap

hyryrytt)H Ba ja MahKaMa HZIUHaCbI yqytt acacnapbIH BapHCHHa qeBpHJ1apca A3ap6ajlaH

h0K)7MaTH 6y Ca3HIIIHH 3-ly MaroiacHHa YiFYH onapar 6yimapbIH aJlbIH)lbIFbIHbl Ba ja MHpac

ran)lbIFbIHbl TaC)lHr ellHp

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6apaclfH)la THJapar CbIFoprncbI Ba ManHjja TaIIIKlfJlarnapbrna aHJl e)llfJlaH Ba A3ap6ajJaH

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cpamnap Ba e)laManap A3ap6ajJaH)la BepKHJ1apllaH a3a)l e)llfJlaJaK)lHp (a) rraparpacp1rna

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hyryrnapbrn an)la e)lHJ1MacHHa Kepa EMHTeHTJlaH A3ap6ajJaH)la BepKH TYTYJ1MajaJar)lbip

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Maroia 3

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BeplfJlMaCHHHH MHpac rojynMaCbIHbIH an)la e)llfJlMaCHHIIH A3ap6ajJaH Pecrry6nHKaCbl

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yqytt YiFYH Ta)l6Hpnap K0pMaja HJa3a BepHp

2

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OHJiapLIH K81fYPYJIMOCH yqyH A3ap6aJqaH ap83HCHHDa TaMHHaTDaH HCTHqgtana enaH Tapaltpa

Maxcyc BacaHTa japaIUIllaH peXHM EMHTeHTa japaIUIJiaH pe)KHM]JaH helI na arrnepHIIICH3

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OHH MaHacpejm1a xanan xampManaH sa OHH raHHBepINBJIHjHHa MYB3qnrr cypalna cap6acT

acrncpana ena 6HJialaKZJKP

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TalZJHM ernujH 6opIJiap YJpa ab)laJIHKJiapHH TaH3HMJiaHMacmma EMHTeHTHH A3ap6ajlaH

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(a) AMepHKa EapnamMHIII IllTaTJiap1gt1HLIH haxyMam Ba A3ap6ajlaH Pecny6mmac11

haKYMam apac1mna 6y C83HmHH TaqgtCHpHHa aH) OJiaH sa ja h8KYMalJiapnaH 6apHHHH

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3

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rrpHHcinIJiapHHa Ba HOpMaJiap1rna acacJiaHalarllLlp MYfICHltpJiap MahKaMacH rapapLI cac

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(3) TahIHIaT 3aMaH1gtI h0KMaTJiapHH hap 6HpH 03 MYHCHltpmnm xapIJiapmm Ba

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pa3bDlamMaJiapLI hap HKH h0KMaTHH 6ajaHMacH yqyH KOHCTIIT)7Cltja Ba llHKap raH)H

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ja3LDILI xa6apllapJILir KeBllapllHjH KYffllaH em6apaH OH mm aj rypTapmanaK ryBBalla

4

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ja31m11 xa6apnapn1ir xeimapmjH KYJIAaH eTH6apaH OH HKH aj ryprnpaHaiaK ryBBana

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jeTHpJlHjHHH A3ap6ajlaH heKYMaTHHHH AMepHKa EHpnamMHID lliTaTnapMHhIH heKyMaTHHa

6HJllHPJlHjH KyH 6y Ca3Hill ryBBaja MHHalaKnHp

BamHHITOJma 1992-qH IDI ceHrja6p1m 28-na HKH Hycxana HHKIDIHC lIDIHJma

HM3aJJaHMhlilllhlp A3ap6ajqaH lHJlHfmaKH MaTH ha3h1pJlaHhI6 EaKhl mahapHHla HM3aJJaHaqar

Ba HHKHJlHC lIDIHHla HM3aJlaHMhlill Ca3HIDHH MaTHH IDia TaM YiFYH onaqarlhlp

A3gPEAJl+IAHAMEPHKA EHPJigIIIMHIII

PECIIYEJIHKACblHbIH h8KYMgTJ1IIITATJIAPblHbIH h8KYMgTJ1

TgpgltJgtlfHIlgHTgpgltJgtlfHIlgH

T rACblMOB ltlgtPEIl M 3EIlEP

MaH TaCJlHf enHpaM KH A3ap6ajqaH lHJlHHlaKH 6y TaM YiFYH MaTH 1992 - IH

IDI ceHTja6p11H 28-na HM3aJlaHMhlill Ca3Hma MYBaqmr maKHJlla ha3hlpJlaHMhlillJl1Ip

AMEPHKA ElfPJigIIIMHIII A3gPEAJIAH PECIIYEJIHKACbl

IIITATJIAPbl h8KYMgTJ1

EaKhI mahapH 1993-qy IDI neKa6p11H 14

5

Page 4: Agreement Between the UNITED STATES OF AMERICA and AZERBAIJAN

INVESTMENT INCENTIVE AGREEMENT BETWEEN THE GOVERNMENT OF THE UNITED STATES OF AMERICA

AND THE GOVERNMENT OF AZERBAIJAN

The Government of the United States of America and the

Government of Azerbaijan

Affirming their common desire to encourage economic

activities in Azerbaijan which promote the development of the

economic resources and productive capacities of Azerbaijan and

Recognizing that this objective can be promoted through

investment insurance (including reinsurance) loans and

investment guaranties which are backed in whole or in part by the

Government of the United States of America and provided by the

Overseas Private Investment Corporation (OPIC) an agency of

the Government of the United States of America

Have agreed as follows

ARTICLE 1

As used in this Agreement the term Coverage shall refer

to any investment insurance reinsurance or investment

guaranty which is provided by an Issuer in connection with a

project in the territory of Azerbaijan and the term

Issuer shall refer to OPIC any successor agency of the

Government of the United States of America and the agent of

either

- 2 -

ARTICLE 2

(a) (i) If the Issuer makes payment to any party under

Coverage the Government of Azerbaijan shall subject

to the provisions of Article 3 of this Agreement

recognize the transfer to the Issuer of any assets

including those in the form of investment as well as

currency or credits in connection with such payment

as well as the succession of the Issuer to any right

title claim privilege or cause of action existing

or which may arise in connection therewith

(ii) If the Issuer in the exercise of its rights

as a creditor acquires any such assets or succeeds to

any right title claim privilege or cause of action

the Government of Azerbaijan shall subject to the

provisions of Article 3 of this Agreement recognize

such acquisition or succession

(b) The Issuer shall assert no greater rights than

those of the party from whom such rights were acquired as

described in paragraph (a) of this Article

(c) The Issuer as a non-commercial agency of the

Government of the United States of America shall not be

subject to regulation under the laws of Azerbaijan

applicable to commercial insurance or financial

organizations (d) Interest and fees on loans made or

guaranteed by the Issuer shall be exempt from tax in

Azerbaijan The Issuer shall not be subject to tax in

- 3 -

Azerbaijan relating to any transfer succession or other

acquisition described in paragraph (a) of this Article In

all other cases tax treatment of transactions conducted by

the Issuer in Azerbaijan as well as tax liabilities

existing prior to such transfer succession or other

acquisition shall be determined by applicable law of

Azerbaijan or any applicable specific agreement between the

Governme nt of the United Sta tes and the Government of

Azerbaijan

ARTICLE 3

To the extent that the laws of Azerbaijan partially or

wholly invalidate o r prohibit the transfer succession or

other a cquisition as described in Ar ticle 2(a) o f this

Agre ement o f any interes t in any p r operty within t h e

territory of Azerbaijan by the Issuer the Government of

Azerbai jan shall permit t he Issuer to make appropr i a te

arrangeme n ts pursuant to which s u ch interests a re

transferred to a person or entity permitted to own such

i nteres t s under the laws o f Azerba ijan

ARTICLE 4

(a) Amount s in the c u rren cy of Azerba ijan inc luding

credits t h e reof acquired by t he Issuer in connecti o n with

paymen t t o a part y under Cov e rage s h a l l be accord ed

t r eatment in the ter ritory of Azerba ijan no less f avorable

- 4 -

as to use and conversion than the treatment to which such

funds would be entitled in the hands of the party under

Coverage

(b) Such amounts and credits may be transferred by the

Issuer to any person or entity and upon such transfer shall

be freely available for use by such person or entity in the

territory of Azerbaijan in accordance with its laws

(c) The provisions of this Article shall also apply to

any amounts and credits in the currency of Azerbaijan which

may be accepted by the Issuer in settlement of obligations

with respect to loans made by the Issuer for projects in

Azerbaijan

ARTICLE 5

(a) Any dispute between the Government of the United

States of America and the Government of Azerbaijan regarding

the interpretation of this Agreement or which in the

opinion of one of the Governments presents a question of

international law arising out of any project or activity for

which Coverage has been issued shall be resolved insofar as

possible through negotiations between the two Governments

If at the end of six months following the request for

negotiations the two Governments have not resolved the

dispute by agreement the dispute including the question of

whether such dispute presents a question of international

law shall be submitted at the initiative of either

- 5 -

Government to an arbitral tribunal for resolution in

accordance with paragraph (b) of this Article

(b) The arbitral tribunal referred to in paragraph (a)

of this Article shall be established and function as

follows

(i) Each Government shall appoint one arbitrator

these two arbitrators shall by agreement designate a

president of the arbitral tribunal who shall be a

citizen of a third state and whose appointment shall be

subject to acceptance by the two Governments The

arbitrators shall be appointed within three months and

the president within six months of the date of receipt

of either Governments request for arbitration If the

appointments are not made within the foregoing time

limits either Government may in the absence of any

other agreement request the Secretary-General of the

Permanent Court of Arbitration to make the necessary

appointment or appointments and both Governments agree

to accept such appointment or appointments

(ii) The arbitral tribunal shall base its

decision on the applicable principles and rules of

international law The arbitral tribunal shall decide

by majority vote Its decision shall be final and

binding

( iii ) During the proceedings each of the

Governments shall pay the expense of its arbitrator and

- 6 -

of its representation in the proceedings before the

arbitral tribunal whereas the expenses of the

president and other costs of arbitration shall be paid

in equal parts by the two Governments In its award

the arbitral tribunal may in its discretion

reallocate expenses and costs between the two

Governments

(iv) In all other matters the arbitral tribunal

shall regulate its own procedures

(c) Nothing in this Agreement shall limit the right of

the Government of the United States of America to assert a

claim under international law in its sovereign capacity as

distinct from any rights of the Issuer

ARTICLE 6

The two Governments desiring reciprocity agree that

in the event the Government of Azerbaijan makes arrangements

to issue Coverage or make loans for projects in the United

States of America under a program similar in substance to

the investment incentive program to which this Agreement

relates provisions equivalent to those of this Agreement

shall apply with respect to such arrangements upon

completion of the constitutional or other legal processes of

both Governments approving such provisions

- 7 -

ARTICLE 7

This Agreement shall continue in force until the

expiration of twelve months from the date on which either

Government shall have given written notice of termination of

this Agreement to the other Provided that in respect of

Coverage issued or loans made at any time before the

termination of this Agreement its provisions shall continue

in effect with respect to such Coverage or loans for a

period of twenty years after the date of termination of this

Agreement

This Agreement shall enter into force on the date on which

the Government of Azerbaijan notifies the Government of the

United States of America that all necessary legal requirements

for entry into force of this Agreement have been fulfilled

Done at Washington on the 28th day of September 1992 in

duplicate in the English language An Azerbaijan language text

shall be prepared which shall be signed in Baku and shall be

considered equally authentic

For the Government of For the Government of THE UNITED STATES OF AMERICA AZERBAIJAN

AMEPHKA EHPJigIIIMHIII IIITATJIAPbl h8KYMgTJ1 HJig

A3gPEAJTIAH PECilYEJIHKACbl h8KYMgTJ1 APAChlH)lA KAI1HTAJI

ffiJYJIYIIIYHA KeMgK hAITblH)lA

CA3HIII

AMepHKa EHpJiaIIIMIDII IIIrnrnap1gt1 heK)MaTH Ba A3ap6ajqaJI Pecny6JIHKac1gt1

h0K)MaTH

A3ap6ajTJaH Pecny6JIHKaCbIHUa HITHCaUH ehTHjarnapbIH Ba HCTehCaJI IlOTeHCHaJihIHblH

HHKmrracpbIHa K0MaK enaH TacappycpaT ltpaaJIHjjaTHHa paBaTJ BepMaK ap3YCYHUa jeKUHJI

onnyrnap1gtIHhI 6ajaH euapaK

AMepHKa EHpJiaIIIMIDII lliTaTJiapbl heK)MaTHHHH TaMaMHJia Ba ja rncMaH TaMHH

eTnHjH Ba AMepHKa EHpJiaIIIMHIII lliTaTJiapbI heK)MaTHHHH axeHTJIHjH OJiaH XapHliilI XycycH

HHBeCTHcHjanap KoprropacHjac1gtrn1gtrn (Overseas Private Investment Corporation) (OllHK)

HDapa eTIJHjH KaITHTaJI rojyJiyIIIYHYH CbIFOpTaJiaHMaCblHhIH 0 IYMJiaDaH TaKpap

ChIFOpTaJiaHMaCblHhIH 6opqnap Ba 3aMaHaTJiap BepHJIMaCHHHH haMHH Marcaua qaTMaFa KeMaK

ena 6HJialajHHH TacnHr enapaK

aIIIaIblJJaKhmap 6apaua pa3hIDbIFa KaJIMHIIIJiap

Ta11

Ey Ca3HIIIDa 11

MHHaT TepMHHH EMHTeHTHH11

BepnHjH Ba A3ap6ajTJaH apa3HCHHDa

HHBeCTHCHja najHhaCH HJia anaranap OJiapar KaITHTaJI rojyJiyIIIYHYH hap haHCbl IIIaKHJIDa

CblFOpTaJiaHMaCbIHa TaKpap CbIFOpTaJiaHMaCbIHa Ba 3aMaHaTHHa aMDDHp EMHTeHT11 TepMHHH

OllHK-a Ba AMepHKa EHpJiaIIIMHIII IIIrnrnap1gtIH1gtIH OllHK-HH hyryrH BapHcH oJiaH hap

haHCbl axeHTJIHjHH Ba 6YHJiapnaH hap haHCbl 6HpHHHH caJiahHjjaTJIH HYMajaHnacHHa aMDDHp

(a) (I) g1Cap EMHTeHT TaMHHaTUaH HCTHltpaUa enaH hap haHCbl TapacpHH xejpHHa

enaHHIII hajaTa KeqHpapca A3ap6ajTJaH h0K)MaTH 6y Ca3HIIIHH 3-TJy MaUDacHHHH

MVULJaaJiap1gtIH1gt1 Ha3apa anapar EMHTeHTa TaMHHaT acac1gtrnna enaHHIIIHH hajaTa KeqHpHJIMacH

HJia 6aFJihl OJiaH hap haHCbl aMJiaK capBaTJiapH 0 IYMJiaUaH KaIDITaJI rojynyIIIy IIYJI BaCaHTH

Ba ja 6ena Kperorrnap KY3aIIIT e)lIDIUHjHHII ha6ena 6yttyima 6aFJ1bI hap haHCbI hyryr

MYJIKHjjaT hyryry H)lrolanap HMTHja3Jiap Baja 6yttyima anara)lap onapar Mej)laHa 1JbIXaH Baja

Mej)laHa 1Ihixa 6HJ1alaK MahKaMa HZIUHaCbI HpanH cypMaK yqytt acacnap 6apacmma EMHTeHTHH

hyryr BapHCJ1HjHHH Tac)lIIT erorp

(II) gKap EMHTeHT Kpe)llfTOp KHMH 03 hyryrnapbIHbl hajaTa Ke~rnpapKaH hap haHCbl

aMJ1aK capBarnapH anapca Ba ja hap haHCbI hyryrnapbIH MYJIKHjjar H)lJlHanap HMTHja3Jiap

hyryrytt)H Ba ja MahKaMa HZIUHaCbI yqytt acacnapbIH BapHCHHa qeBpHJ1apca A3ap6ajlaH

h0K)7MaTH 6y Ca3HIIIHH 3-ly MaroiacHHa YiFYH onapar 6yimapbIH aJlbIH)lbIFbIHbl Ba ja MHpac

ran)lbIFbIHbl TaC)lHr ellHp

(6) EMHTeHT TapaqmH MaJlHK OJl)lYJY Ba 6y MarolaHHH (a) rraparpaltpbIH)la

KecTapmm1-1jH raj)la)la KY3amT eT)llfjH h yryrnapJlaH ycTytt h yryr Tana6 eTMajalaKJlHp

(B) AMepHKa EHpnaIIIMHIII lllTarnapbIHbIH rejpH-THJapaT ruceHTJ1HjH KHMH EMHTeHT

6apaclfH)la THJapar CbIFoprncbI Ba ManHjja TaIIIKlfJlarnapbrna aHJl e)llfJlaH Ba A3ap6ajJaH

Pecrry6nHKaCbI raHyttBepHJlfJlHjHH)la Ha3ap)la TYTynaH MY)Jllaanap IIIaMlfJl e)llfJlMajaJaK)lHp

(r) EMHTeHTHH Tar)lHM eT)lHjH Ba ja 3aMaHaT IIIaKJ1HH)la Bep)llfjH 6opqnap Y3pa

cpamnap Ba e)laManap A3ap6ajJaH)la BepKHJ1apllaH a3a)l e)llfJlaJaK)lHp (a) rraparpacp1rna

MYBaltp11r cypar)la hyryrnapbIH 6aIIIracbIHa BepHJ1Mac1-1 hyryr BapHcnHjH Ba ja JlHKap

hyryrnapbrn an)la e)lHJ1MacHHa Kepa EMHTeHTJlaH A3ap6ajJaH)la BepKH TYTYJ1MajaJar)lbip

EMHTeHTIIH A3ap6ajJaH)la hajaTa Keq11p)lHjH 6aIIIra aMan11jjarnapbIH BepKH pe)KHMH ha6ena

hyryrnapbIH 6amracbIHa BeplfJlMacHH)laH Ba hyryr BapHCJ1HjHH)laH hyryrnapbIH KY3aIIIT

e)llfJlMaCHH)laH Ba ja 6amracbrna Ke~aCHHJlaH aBBaJ1KH BepKH eh)laJ1HKJ1apH A3ap6ajJaH

Pecrry6nHKaCbIHbIH ryBBa)la ony6 TaT6Hr e)llfJlaH raHyttBepHJlfJlHjH lfJla Ba AMepHKa

EHpnaIIIMHIII IIITarnapbI heK)MaTH HJ1a A3ap6ajJaH Pecrry6nHKaCbIHbIH heK)MaTH apacbIH)la

xycycH Ca3Hm 6aFnaHapca haMHH Ca3HIIIJ1a ~jjaH e)llfJlaJaK)lHp

Maroia 3

Ey Ca3HIIIBH 2 (a) MarolaCHH)la K0CTaplfJ1)lHjH KHMH A3ap6ajJaH Pecrry6nHKaCbl

apa3HCHH)la EMHTeHT TapaltplfH)laH hap haHCbl MYJIKHjjaTHH hap haHCbl rrajbIHbIH

BeplfJlMaCHHHH MHpac rojynMaCbIHbIH an)la e)llfJlMaCHHIIH A3ap6ajJaH Pecrry6nHKaCbl

raHyimapbI lfJla mcMaH Ba TaM e11TH6apcbI3 heca6 e)llfJlMacH Ba jaxYJl ra)laFaH onyttMaCbI

Tar)llfp)la A3ap6ajqaH Pecrry6nHKaCbl h0K)7MaTH EMHTeHTa haMHH rrajbIHbl A3ap6ajJaH

raHyimapbrna Kepa 6ena rraja MaJlHK onMar hyryry ltpH3HKH Ba hyryrH maxcnapa BepHJ1MacH

yqytt YiFYH Ta)l6Hpnap K0pMaja HJa3a BepHp

2

(a) EMHTeHTIIH 6eJia TaMHHaTJia anaranap onapar A3ap6aJqaH BaJijyracLI HJia

aJID1IFIJ BacaHTnaH o -qyMJianaH 6y Banjyra HJia aJIDJIFIJ Kpe)UITJiapnaH HCTHqgtana ezumMacH na

OHJiapLIH K81fYPYJIMOCH yqyH A3ap6aJqaH ap83HCHHDa TaMHHaTDaH HCTHqgtana enaH Tapaltpa

Maxcyc BacaHTa japaIUIllaH peXHM EMHTeHTa japaIUIJiaH pe)KHM]JaH helI na arrnepHIIICH3

oJIMajalamLIJgt

(6) EMHTeHT 6y BacaHTHH Ba Kpe)UITnapH hap haHCLI maxca sa ja TamKHJiaTa nepa

6HJiap Ba 6yayH acacLJ1ma haMHH maxc na ja TamKHJiaT oHJiapnm A3ap6aj-qm ap83Hcmma

OHH MaHacpejm1a xanan xampManaH sa OHH raHHBepINBJIHjHHa MYB3qnrr cypalna cap6acT

acrncpana ena 6HJialaKZJKP

(B) 4--qy MannaHHH MY)maanap11 haMlIHHHH A3ap6ajlaHlla najmianap yqyH EMHTeHTHH

TalZJHM ernujH 6opIJiap YJpa ab)laJIHKJiapHH TaH3HMJiaHMacmma EMHTeHTHH A3ap6ajlaH

BaJijyrac11 HJia ra6yn ena 6HJialajH Ma6narnapa Ba Kpe)UITnapa na maMHJI eDHJialaKlJHP

(a) AMepHKa EapnamMHIII IllTaTJiap1gt1HLIH haxyMam Ba A3ap6ajlaH Pecny6mmac11

haKYMam apac1mna 6y C83HmHH TaqgtCHpHHa aH) OJiaH sa ja h8KYMalJiapnaH 6apHHHH

qgtHKpHHla Ta11MHHaTL1 aJILIHMLim hap haHCLI najmia sa ja cpaamrjjaI HJia anaranap onapar

MejDaHa lILJXaH 6ejHaJIXaJII hyryI MacaJiacHHa aH) MY(5ahHca HMKaH DaxHJIHHDa HKH h8KYMaI

apac1mna ZJaHLIIIILilJiap joey HJia apanaH raJIJUgtIpLDialaJJUgtIp JlaHLIIIILIIJiap KelIHpHJIMOCH

harnnma XahHIIIJia MYJgtaIHOO elUf]IZJHKJJaH coHpa axap aJITLI aj ap3HHDa HKH h8K)MOO I

rapmLDILilJILI p83LDILif acac1mna MY(ahHcaHH apanaH raJIDJIpM83ca MY(ahHca o IYMJlanaH I

haMHH MY(ShHcaHHH 6ejHaJIXaJir hyryra aH) OJIY6-0JIMaMaCLI MacaJiacH 6y MaunaHHH (6)

naparpaltp1gtIHa MBaqnrr cypOOna apanm raJIDLipLDIMar yqyH h8KYMOOJiapnan hap haHCLI

6apHHHH Tama66ycy HJia MYHCHltpJiap MahKaMacHHa nepHJialaKZJKP

(6) My6aEiHcanapH 6y MannaHHH (a) rraparpaltpLIHa M(BaltpHI cypOOna apaum

raJIJUgtIpMar yqyH MlplCHltpJiap MahKaMacH amaFLruan1 rajnana jap3llLDiaar Ba HIIIJiajalaKZJHp

(1) hap h8K)MOO 6Hp MffCHltp Ta11jHH enalilaKlJHP Ey HKH MHCHltp rapmLDILIDThI

p83LDILif acacLIH)la hap HKH h8KYMOO TapacpmmaH TajHH e)lHJIMacH 6ajaHHJiaH na yqya-qy

neMalHH BaTalfllamLI OJiaH canp11 MyajjaHJiaIIJDHPHp MYffCHltpJiap yq aj ap3HlfJla caJlP 11ca

MplCHltpJiap MahKaMacmma apaIDZJIIpMa harnnma h8KyMOOJiapHH hap haHCLI 6apHHHH

MPaHam aJILIHllLIFLI xyel(aH em6apaH aJITLI aj ap3mma TajHH enHJIM~ Ey

3

NjHHaTJiap jyxaplJ)Ja llejHJiaH MY)])larnap ap3HHlla hajaTa KellHpHJIMa3ca 6amra pa3LDiaJIIMa

oJIMazu1ma h0KMaTJiapHH hap haHC1gt1 6HpH HlmecTHc11ja My68hllcarrapmnm apanaH

raJIlllIp1gtD1Mac11 Y3pa Uamm Ap611Tpax MahKaMacmnm Earn Kam6HHllaH X3hlllll ela 6HJiap

KH Jia3bIMH NjHHaTLI Baja NjHHarnap11 hajaTa KellHpCHH Ey haJIlla hap mm h0KMaT 6y

TajHHaTbI Baja Ta11jHHaTJiapLI ra6YJI eTMaja pa3LI OJIamplalllblp

(2) MYHCHltpJiap MahKaMacH 03 rapap1gt1Hlla 6ejHaJIXaJir hyryryH TaT611r ellHJiaH

rrpHHcinIJiapHHa Ba HOpMaJiap1rna acacJiaHalarllLlp MYfICHltpJiap MahKaMacH rapapLI cac

qoxnyry HJia ra6YJI ellllp OH)H rapap11 raTH oJialaIlllIp Ba heKMaH jepHHa jempHJIMaJIBIlllp

(3) TahIHIaT 3aMaH1gtI h0KMaTJiapHH hap 6HpH 03 MYHCHltpmnm xapIJiapmm Ba

MYHCHltpJiaH MahKaMacHHlla rrpocellYJ)JIampplla TaMcHJI OJIYHMac1rna xapIJiapH ellajalaK callp

yqyH xapIJiap Ba MYHCHltpJiap MahKaMacHHlla apamllbipMaHbm 6amra xapIJiap11 11ca HKH

h0KMaT TapaqgtHHllaH 6apa6ap hHccarrapJia ellaHHJialaK)Ulp MYfICHltpJiap MahKaMacH 03

rapapLIHlla xapIJiapHH Ba ellammIJiapHH mm h0KMaT apac1gt1Hlla 6eJIYIIInYPYJIMacmnm

rrponopc11jaJiapLIHLI 03 MYJI8h113acHHa Kapa llajmnruqgta 6HJiap

(4) EyryH llHl(ap MacaTiaTiap 6apacHHlla MYHCHltpJiap MahKaMacH 03 rrpocem

rajllaJiapLIHLI ~jaH ellllp

(B) Ey Ca3mnzia heq Ha AMepHKa nHpJiaIIIMmII lIITaTJiapLIH heKMaIHIIHH

EMHTeHTHH hap haHCLI hYJYlIlapLIHllaH ltpaprmt cysepeH ll0BJiaT oJiapar EejHaJIXaJir h yryra

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Mazma 6

hap HKH h0KMaT rapIIllDILirnbI Ha3aKaT xaTHpHHa pa3LDla1Il1IpJiap KH aKap

A3ap6ajlaH heKMam AMepHKa 6HpJiaIIIMmII lIITaTJiap1gtIHlla JiajHhaTiap yqyH Ma3MYHYffa

Kapa mmecmcitjaJiapa KeMaK rrporpaMLma 6aH3ajaH jaHH 6y Ca3mna 6aH3ajaH rrporpaMa

yjFH cypaTlla NMHHaT Ba ja 6op1 sepHJIMacH 6apalla pa3LDiamMa aTl)la ellapca 6eJIa

pa3bDlamMaJiapLI hap HKH h0KMaTHH 6ajaHMacH yqyH KOHCTIIT)7Cltja Ba llHKap raH)H

rrpocellYJ)aJiapLIHLI 6ama qaTllblpllblIllaH coHpa 6y Ca3mIIHH MY)])laaJiap11 HJia eKBHBaJieHT

MY)J)laanap haMHH pa3LDiaJIIMaJiapa Ila maMHJI ellHJialaKJUIP

Mazma 7

Ey Ca3mn OH)H ryssacmnm llajaHllLlp1gtDIMac11 harrLIHlla 6Hp h0JCYMamH 6amracLIHa

ja3LDILI xa6apllapJILir KeBllapllHjH KYffllaH em6apaH OH mm aj rypTapmanaK ryBBalla

4

Ey Ca3mrr OHYJI ryBBaCHHHH najaJmhlphIJIMac11 MlIThIHJla 6Hp h9KYMaTHH 6amrac1ma

ja31m11 xa6apnapn1ir xeimapmjH KYJIAaH eTH6apaH OH HKH aj ryprnpaHaiaK ryBBana

ranalarr(hlp Ey Ca3HIDHH ryBBaCH najaimiIphIJiaH3l(aK hap haHClI BaxTna BepIDiaH Ta 11 MHHaTa

Baja 6op1IBapa KaJllHKna Hca 6ena Ta 11 MHHaT Baja 6op1IBap 6apacHHla Ca3mrrHH wpmaanap11

OHYJI ryBBaCHHHH najaJmhlphIJIJllIFlI BaxTna eTH6apaH HjHpMH IDI ap3HHJla ryBBana

ranaarJllIp

Ey Ca3Hill 6apaCHHla 93 KOHCTHTYCHja Ba ja nmrap hyryrH Tana6napHH jepHHa

jeTHpJlHjHHH A3ap6ajlaH heKYMaTHHHH AMepHKa EHpnamMHID lliTaTnapMHhIH heKyMaTHHa

6HJllHPJlHjH KyH 6y Ca3Hill ryBBaja MHHalaKnHp

BamHHITOJma 1992-qH IDI ceHrja6p1m 28-na HKH Hycxana HHKIDIHC lIDIHJma

HM3aJJaHMhlilllhlp A3ap6ajqaH lHJlHfmaKH MaTH ha3h1pJlaHhI6 EaKhl mahapHHla HM3aJJaHaqar

Ba HHKHJlHC lIDIHHla HM3aJlaHMhlill Ca3HIDHH MaTHH IDia TaM YiFYH onaqarlhlp

A3gPEAJl+IAHAMEPHKA EHPJigIIIMHIII

PECIIYEJIHKACblHbIH h8KYMgTJ1IIITATJIAPblHbIH h8KYMgTJ1

TgpgltJgtlfHIlgHTgpgltJgtlfHIlgH

T rACblMOB ltlgtPEIl M 3EIlEP

MaH TaCJlHf enHpaM KH A3ap6ajqaH lHJlHHlaKH 6y TaM YiFYH MaTH 1992 - IH

IDI ceHTja6p11H 28-na HM3aJlaHMhlill Ca3Hma MYBaqmr maKHJlla ha3hlpJlaHMhlillJl1Ip

AMEPHKA ElfPJigIIIMHIII A3gPEAJIAH PECIIYEJIHKACbl

IIITATJIAPbl h8KYMgTJ1

EaKhI mahapH 1993-qy IDI neKa6p11H 14

5

Page 5: Agreement Between the UNITED STATES OF AMERICA and AZERBAIJAN

- 2 -

ARTICLE 2

(a) (i) If the Issuer makes payment to any party under

Coverage the Government of Azerbaijan shall subject

to the provisions of Article 3 of this Agreement

recognize the transfer to the Issuer of any assets

including those in the form of investment as well as

currency or credits in connection with such payment

as well as the succession of the Issuer to any right

title claim privilege or cause of action existing

or which may arise in connection therewith

(ii) If the Issuer in the exercise of its rights

as a creditor acquires any such assets or succeeds to

any right title claim privilege or cause of action

the Government of Azerbaijan shall subject to the

provisions of Article 3 of this Agreement recognize

such acquisition or succession

(b) The Issuer shall assert no greater rights than

those of the party from whom such rights were acquired as

described in paragraph (a) of this Article

(c) The Issuer as a non-commercial agency of the

Government of the United States of America shall not be

subject to regulation under the laws of Azerbaijan

applicable to commercial insurance or financial

organizations (d) Interest and fees on loans made or

guaranteed by the Issuer shall be exempt from tax in

Azerbaijan The Issuer shall not be subject to tax in

- 3 -

Azerbaijan relating to any transfer succession or other

acquisition described in paragraph (a) of this Article In

all other cases tax treatment of transactions conducted by

the Issuer in Azerbaijan as well as tax liabilities

existing prior to such transfer succession or other

acquisition shall be determined by applicable law of

Azerbaijan or any applicable specific agreement between the

Governme nt of the United Sta tes and the Government of

Azerbaijan

ARTICLE 3

To the extent that the laws of Azerbaijan partially or

wholly invalidate o r prohibit the transfer succession or

other a cquisition as described in Ar ticle 2(a) o f this

Agre ement o f any interes t in any p r operty within t h e

territory of Azerbaijan by the Issuer the Government of

Azerbai jan shall permit t he Issuer to make appropr i a te

arrangeme n ts pursuant to which s u ch interests a re

transferred to a person or entity permitted to own such

i nteres t s under the laws o f Azerba ijan

ARTICLE 4

(a) Amount s in the c u rren cy of Azerba ijan inc luding

credits t h e reof acquired by t he Issuer in connecti o n with

paymen t t o a part y under Cov e rage s h a l l be accord ed

t r eatment in the ter ritory of Azerba ijan no less f avorable

- 4 -

as to use and conversion than the treatment to which such

funds would be entitled in the hands of the party under

Coverage

(b) Such amounts and credits may be transferred by the

Issuer to any person or entity and upon such transfer shall

be freely available for use by such person or entity in the

territory of Azerbaijan in accordance with its laws

(c) The provisions of this Article shall also apply to

any amounts and credits in the currency of Azerbaijan which

may be accepted by the Issuer in settlement of obligations

with respect to loans made by the Issuer for projects in

Azerbaijan

ARTICLE 5

(a) Any dispute between the Government of the United

States of America and the Government of Azerbaijan regarding

the interpretation of this Agreement or which in the

opinion of one of the Governments presents a question of

international law arising out of any project or activity for

which Coverage has been issued shall be resolved insofar as

possible through negotiations between the two Governments

If at the end of six months following the request for

negotiations the two Governments have not resolved the

dispute by agreement the dispute including the question of

whether such dispute presents a question of international

law shall be submitted at the initiative of either

- 5 -

Government to an arbitral tribunal for resolution in

accordance with paragraph (b) of this Article

(b) The arbitral tribunal referred to in paragraph (a)

of this Article shall be established and function as

follows

(i) Each Government shall appoint one arbitrator

these two arbitrators shall by agreement designate a

president of the arbitral tribunal who shall be a

citizen of a third state and whose appointment shall be

subject to acceptance by the two Governments The

arbitrators shall be appointed within three months and

the president within six months of the date of receipt

of either Governments request for arbitration If the

appointments are not made within the foregoing time

limits either Government may in the absence of any

other agreement request the Secretary-General of the

Permanent Court of Arbitration to make the necessary

appointment or appointments and both Governments agree

to accept such appointment or appointments

(ii) The arbitral tribunal shall base its

decision on the applicable principles and rules of

international law The arbitral tribunal shall decide

by majority vote Its decision shall be final and

binding

( iii ) During the proceedings each of the

Governments shall pay the expense of its arbitrator and

- 6 -

of its representation in the proceedings before the

arbitral tribunal whereas the expenses of the

president and other costs of arbitration shall be paid

in equal parts by the two Governments In its award

the arbitral tribunal may in its discretion

reallocate expenses and costs between the two

Governments

(iv) In all other matters the arbitral tribunal

shall regulate its own procedures

(c) Nothing in this Agreement shall limit the right of

the Government of the United States of America to assert a

claim under international law in its sovereign capacity as

distinct from any rights of the Issuer

ARTICLE 6

The two Governments desiring reciprocity agree that

in the event the Government of Azerbaijan makes arrangements

to issue Coverage or make loans for projects in the United

States of America under a program similar in substance to

the investment incentive program to which this Agreement

relates provisions equivalent to those of this Agreement

shall apply with respect to such arrangements upon

completion of the constitutional or other legal processes of

both Governments approving such provisions

- 7 -

ARTICLE 7

This Agreement shall continue in force until the

expiration of twelve months from the date on which either

Government shall have given written notice of termination of

this Agreement to the other Provided that in respect of

Coverage issued or loans made at any time before the

termination of this Agreement its provisions shall continue

in effect with respect to such Coverage or loans for a

period of twenty years after the date of termination of this

Agreement

This Agreement shall enter into force on the date on which

the Government of Azerbaijan notifies the Government of the

United States of America that all necessary legal requirements

for entry into force of this Agreement have been fulfilled

Done at Washington on the 28th day of September 1992 in

duplicate in the English language An Azerbaijan language text

shall be prepared which shall be signed in Baku and shall be

considered equally authentic

For the Government of For the Government of THE UNITED STATES OF AMERICA AZERBAIJAN

AMEPHKA EHPJigIIIMHIII IIITATJIAPbl h8KYMgTJ1 HJig

A3gPEAJTIAH PECilYEJIHKACbl h8KYMgTJ1 APAChlH)lA KAI1HTAJI

ffiJYJIYIIIYHA KeMgK hAITblH)lA

CA3HIII

AMepHKa EHpJiaIIIMIDII IIIrnrnap1gt1 heK)MaTH Ba A3ap6ajqaJI Pecny6JIHKac1gt1

h0K)MaTH

A3ap6ajTJaH Pecny6JIHKaCbIHUa HITHCaUH ehTHjarnapbIH Ba HCTehCaJI IlOTeHCHaJihIHblH

HHKmrracpbIHa K0MaK enaH TacappycpaT ltpaaJIHjjaTHHa paBaTJ BepMaK ap3YCYHUa jeKUHJI

onnyrnap1gtIHhI 6ajaH euapaK

AMepHKa EHpJiaIIIMIDII lliTaTJiapbl heK)MaTHHHH TaMaMHJia Ba ja rncMaH TaMHH

eTnHjH Ba AMepHKa EHpJiaIIIMHIII lliTaTJiapbI heK)MaTHHHH axeHTJIHjH OJiaH XapHliilI XycycH

HHBeCTHcHjanap KoprropacHjac1gtrn1gtrn (Overseas Private Investment Corporation) (OllHK)

HDapa eTIJHjH KaITHTaJI rojyJiyIIIYHYH CbIFOpTaJiaHMaCblHhIH 0 IYMJiaDaH TaKpap

ChIFOpTaJiaHMaCblHhIH 6opqnap Ba 3aMaHaTJiap BepHJIMaCHHHH haMHH Marcaua qaTMaFa KeMaK

ena 6HJialajHHH TacnHr enapaK

aIIIaIblJJaKhmap 6apaua pa3hIDbIFa KaJIMHIIIJiap

Ta11

Ey Ca3HIIIDa 11

MHHaT TepMHHH EMHTeHTHH11

BepnHjH Ba A3ap6ajTJaH apa3HCHHDa

HHBeCTHCHja najHhaCH HJia anaranap OJiapar KaITHTaJI rojyJiyIIIYHYH hap haHCbl IIIaKHJIDa

CblFOpTaJiaHMaCbIHa TaKpap CbIFOpTaJiaHMaCbIHa Ba 3aMaHaTHHa aMDDHp EMHTeHT11 TepMHHH

OllHK-a Ba AMepHKa EHpJiaIIIMHIII IIIrnrnap1gtIH1gtIH OllHK-HH hyryrH BapHcH oJiaH hap

haHCbl axeHTJIHjHH Ba 6YHJiapnaH hap haHCbl 6HpHHHH caJiahHjjaTJIH HYMajaHnacHHa aMDDHp

(a) (I) g1Cap EMHTeHT TaMHHaTUaH HCTHltpaUa enaH hap haHCbl TapacpHH xejpHHa

enaHHIII hajaTa KeqHpapca A3ap6ajTJaH h0K)MaTH 6y Ca3HIIIHH 3-TJy MaUDacHHHH

MVULJaaJiap1gtIH1gt1 Ha3apa anapar EMHTeHTa TaMHHaT acac1gtrnna enaHHIIIHH hajaTa KeqHpHJIMacH

HJia 6aFJihl OJiaH hap haHCbl aMJiaK capBaTJiapH 0 IYMJiaUaH KaIDITaJI rojynyIIIy IIYJI BaCaHTH

Ba ja 6ena Kperorrnap KY3aIIIT e)lIDIUHjHHII ha6ena 6yttyima 6aFJ1bI hap haHCbI hyryr

MYJIKHjjaT hyryry H)lrolanap HMTHja3Jiap Baja 6yttyima anara)lap onapar Mej)laHa 1JbIXaH Baja

Mej)laHa 1Ihixa 6HJ1alaK MahKaMa HZIUHaCbI HpanH cypMaK yqytt acacnap 6apacmma EMHTeHTHH

hyryr BapHCJ1HjHHH Tac)lIIT erorp

(II) gKap EMHTeHT Kpe)llfTOp KHMH 03 hyryrnapbIHbl hajaTa Ke~rnpapKaH hap haHCbl

aMJ1aK capBarnapH anapca Ba ja hap haHCbI hyryrnapbIH MYJIKHjjar H)lJlHanap HMTHja3Jiap

hyryrytt)H Ba ja MahKaMa HZIUHaCbI yqytt acacnapbIH BapHCHHa qeBpHJ1apca A3ap6ajlaH

h0K)7MaTH 6y Ca3HIIIHH 3-ly MaroiacHHa YiFYH onapar 6yimapbIH aJlbIH)lbIFbIHbl Ba ja MHpac

ran)lbIFbIHbl TaC)lHr ellHp

(6) EMHTeHT TapaqmH MaJlHK OJl)lYJY Ba 6y MarolaHHH (a) rraparpaltpbIH)la

KecTapmm1-1jH raj)la)la KY3amT eT)llfjH h yryrnapJlaH ycTytt h yryr Tana6 eTMajalaKJlHp

(B) AMepHKa EHpnaIIIMHIII lllTarnapbIHbIH rejpH-THJapaT ruceHTJ1HjH KHMH EMHTeHT

6apaclfH)la THJapar CbIFoprncbI Ba ManHjja TaIIIKlfJlarnapbrna aHJl e)llfJlaH Ba A3ap6ajJaH

Pecrry6nHKaCbI raHyttBepHJlfJlHjHH)la Ha3ap)la TYTynaH MY)Jllaanap IIIaMlfJl e)llfJlMajaJaK)lHp

(r) EMHTeHTHH Tar)lHM eT)lHjH Ba ja 3aMaHaT IIIaKJ1HH)la Bep)llfjH 6opqnap Y3pa

cpamnap Ba e)laManap A3ap6ajJaH)la BepKHJ1apllaH a3a)l e)llfJlaJaK)lHp (a) rraparpacp1rna

MYBaltp11r cypar)la hyryrnapbIH 6aIIIracbIHa BepHJ1Mac1-1 hyryr BapHcnHjH Ba ja JlHKap

hyryrnapbrn an)la e)lHJ1MacHHa Kepa EMHTeHTJlaH A3ap6ajJaH)la BepKH TYTYJ1MajaJar)lbip

EMHTeHTIIH A3ap6ajJaH)la hajaTa Keq11p)lHjH 6aIIIra aMan11jjarnapbIH BepKH pe)KHMH ha6ena

hyryrnapbIH 6amracbIHa BeplfJlMacHH)laH Ba hyryr BapHCJ1HjHH)laH hyryrnapbIH KY3aIIIT

e)llfJlMaCHH)laH Ba ja 6amracbrna Ke~aCHHJlaH aBBaJ1KH BepKH eh)laJ1HKJ1apH A3ap6ajJaH

Pecrry6nHKaCbIHbIH ryBBa)la ony6 TaT6Hr e)llfJlaH raHyttBepHJlfJlHjH lfJla Ba AMepHKa

EHpnaIIIMHIII IIITarnapbI heK)MaTH HJ1a A3ap6ajJaH Pecrry6nHKaCbIHbIH heK)MaTH apacbIH)la

xycycH Ca3Hm 6aFnaHapca haMHH Ca3HIIIJ1a ~jjaH e)llfJlaJaK)lHp

Maroia 3

Ey Ca3HIIIBH 2 (a) MarolaCHH)la K0CTaplfJ1)lHjH KHMH A3ap6ajJaH Pecrry6nHKaCbl

apa3HCHH)la EMHTeHT TapaltplfH)laH hap haHCbl MYJIKHjjaTHH hap haHCbl rrajbIHbIH

BeplfJlMaCHHHH MHpac rojynMaCbIHbIH an)la e)llfJlMaCHHIIH A3ap6ajJaH Pecrry6nHKaCbl

raHyimapbI lfJla mcMaH Ba TaM e11TH6apcbI3 heca6 e)llfJlMacH Ba jaxYJl ra)laFaH onyttMaCbI

Tar)llfp)la A3ap6ajqaH Pecrry6nHKaCbl h0K)7MaTH EMHTeHTa haMHH rrajbIHbl A3ap6ajJaH

raHyimapbrna Kepa 6ena rraja MaJlHK onMar hyryry ltpH3HKH Ba hyryrH maxcnapa BepHJ1MacH

yqytt YiFYH Ta)l6Hpnap K0pMaja HJa3a BepHp

2

(a) EMHTeHTIIH 6eJia TaMHHaTJia anaranap onapar A3ap6aJqaH BaJijyracLI HJia

aJID1IFIJ BacaHTnaH o -qyMJianaH 6y Banjyra HJia aJIDJIFIJ Kpe)UITJiapnaH HCTHqgtana ezumMacH na

OHJiapLIH K81fYPYJIMOCH yqyH A3ap6aJqaH ap83HCHHDa TaMHHaTDaH HCTHqgtana enaH Tapaltpa

Maxcyc BacaHTa japaIUIllaH peXHM EMHTeHTa japaIUIJiaH pe)KHM]JaH helI na arrnepHIIICH3

oJIMajalamLIJgt

(6) EMHTeHT 6y BacaHTHH Ba Kpe)UITnapH hap haHCLI maxca sa ja TamKHJiaTa nepa

6HJiap Ba 6yayH acacLJ1ma haMHH maxc na ja TamKHJiaT oHJiapnm A3ap6aj-qm ap83Hcmma

OHH MaHacpejm1a xanan xampManaH sa OHH raHHBepINBJIHjHHa MYB3qnrr cypalna cap6acT

acrncpana ena 6HJialaKZJKP

(B) 4--qy MannaHHH MY)maanap11 haMlIHHHH A3ap6ajlaHlla najmianap yqyH EMHTeHTHH

TalZJHM ernujH 6opIJiap YJpa ab)laJIHKJiapHH TaH3HMJiaHMacmma EMHTeHTHH A3ap6ajlaH

BaJijyrac11 HJia ra6yn ena 6HJialajH Ma6narnapa Ba Kpe)UITnapa na maMHJI eDHJialaKlJHP

(a) AMepHKa EapnamMHIII IllTaTJiap1gt1HLIH haxyMam Ba A3ap6ajlaH Pecny6mmac11

haKYMam apac1mna 6y C83HmHH TaqgtCHpHHa aH) OJiaH sa ja h8KYMalJiapnaH 6apHHHH

qgtHKpHHla Ta11MHHaTL1 aJILIHMLim hap haHCLI najmia sa ja cpaamrjjaI HJia anaranap onapar

MejDaHa lILJXaH 6ejHaJIXaJII hyryI MacaJiacHHa aH) MY(5ahHca HMKaH DaxHJIHHDa HKH h8KYMaI

apac1mna ZJaHLIIIILilJiap joey HJia apanaH raJIJUgtIpLDialaJJUgtIp JlaHLIIIILIIJiap KelIHpHJIMOCH

harnnma XahHIIIJia MYJgtaIHOO elUf]IZJHKJJaH coHpa axap aJITLI aj ap3HHDa HKH h8K)MOO I

rapmLDILilJILI p83LDILif acac1mna MY(ahHcaHH apanaH raJIDJIpM83ca MY(ahHca o IYMJlanaH I

haMHH MY(ShHcaHHH 6ejHaJIXaJir hyryra aH) OJIY6-0JIMaMaCLI MacaJiacH 6y MaunaHHH (6)

naparpaltp1gtIHa MBaqnrr cypOOna apanm raJIDLipLDIMar yqyH h8KYMOOJiapnan hap haHCLI

6apHHHH Tama66ycy HJia MYHCHltpJiap MahKaMacHHa nepHJialaKZJKP

(6) My6aEiHcanapH 6y MannaHHH (a) rraparpaltpLIHa M(BaltpHI cypOOna apaum

raJIJUgtIpMar yqyH MlplCHltpJiap MahKaMacH amaFLruan1 rajnana jap3llLDiaar Ba HIIIJiajalaKZJHp

(1) hap h8K)MOO 6Hp MffCHltp Ta11jHH enalilaKlJHP Ey HKH MHCHltp rapmLDILIDThI

p83LDILif acacLIH)la hap HKH h8KYMOO TapacpmmaH TajHH e)lHJIMacH 6ajaHHJiaH na yqya-qy

neMalHH BaTalfllamLI OJiaH canp11 MyajjaHJiaIIJDHPHp MYffCHltpJiap yq aj ap3HlfJla caJlP 11ca

MplCHltpJiap MahKaMacmma apaIDZJIIpMa harnnma h8KyMOOJiapHH hap haHCLI 6apHHHH

MPaHam aJILIHllLIFLI xyel(aH em6apaH aJITLI aj ap3mma TajHH enHJIM~ Ey

3

NjHHaTJiap jyxaplJ)Ja llejHJiaH MY)])larnap ap3HHlla hajaTa KellHpHJIMa3ca 6amra pa3LDiaJIIMa

oJIMazu1ma h0KMaTJiapHH hap haHC1gt1 6HpH HlmecTHc11ja My68hllcarrapmnm apanaH

raJIlllIp1gtD1Mac11 Y3pa Uamm Ap611Tpax MahKaMacmnm Earn Kam6HHllaH X3hlllll ela 6HJiap

KH Jia3bIMH NjHHaTLI Baja NjHHarnap11 hajaTa KellHpCHH Ey haJIlla hap mm h0KMaT 6y

TajHHaTbI Baja Ta11jHHaTJiapLI ra6YJI eTMaja pa3LI OJIamplalllblp

(2) MYHCHltpJiap MahKaMacH 03 rapap1gt1Hlla 6ejHaJIXaJir hyryryH TaT611r ellHJiaH

rrpHHcinIJiapHHa Ba HOpMaJiap1rna acacJiaHalarllLlp MYfICHltpJiap MahKaMacH rapapLI cac

qoxnyry HJia ra6YJI ellllp OH)H rapap11 raTH oJialaIlllIp Ba heKMaH jepHHa jempHJIMaJIBIlllp

(3) TahIHIaT 3aMaH1gtI h0KMaTJiapHH hap 6HpH 03 MYHCHltpmnm xapIJiapmm Ba

MYHCHltpJiaH MahKaMacHHlla rrpocellYJ)JIampplla TaMcHJI OJIYHMac1rna xapIJiapH ellajalaK callp

yqyH xapIJiap Ba MYHCHltpJiap MahKaMacHHlla apamllbipMaHbm 6amra xapIJiap11 11ca HKH

h0KMaT TapaqgtHHllaH 6apa6ap hHccarrapJia ellaHHJialaK)Ulp MYfICHltpJiap MahKaMacH 03

rapapLIHlla xapIJiapHH Ba ellammIJiapHH mm h0KMaT apac1gt1Hlla 6eJIYIIInYPYJIMacmnm

rrponopc11jaJiapLIHLI 03 MYJI8h113acHHa Kapa llajmnruqgta 6HJiap

(4) EyryH llHl(ap MacaTiaTiap 6apacHHlla MYHCHltpJiap MahKaMacH 03 rrpocem

rajllaJiapLIHLI ~jaH ellllp

(B) Ey Ca3mnzia heq Ha AMepHKa nHpJiaIIIMmII lIITaTJiapLIH heKMaIHIIHH

EMHTeHTHH hap haHCLI hYJYlIlapLIHllaH ltpaprmt cysepeH ll0BJiaT oJiapar EejHaJIXaJir h yryra

yjryH TaTia6 HpaTIH cypMaK h YJYlIlapLIHbI MahllY)Vlamllbipa 6HJIMa3

Mazma 6

hap HKH h0KMaT rapIIllDILirnbI Ha3aKaT xaTHpHHa pa3LDla1Il1IpJiap KH aKap

A3ap6ajlaH heKMam AMepHKa 6HpJiaIIIMmII lIITaTJiap1gtIHlla JiajHhaTiap yqyH Ma3MYHYffa

Kapa mmecmcitjaJiapa KeMaK rrporpaMLma 6aH3ajaH jaHH 6y Ca3mna 6aH3ajaH rrporpaMa

yjFH cypaTlla NMHHaT Ba ja 6op1 sepHJIMacH 6apalla pa3LDiamMa aTl)la ellapca 6eJIa

pa3bDlamMaJiapLI hap HKH h0KMaTHH 6ajaHMacH yqyH KOHCTIIT)7Cltja Ba llHKap raH)H

rrpocellYJ)aJiapLIHLI 6ama qaTllblpllblIllaH coHpa 6y Ca3mIIHH MY)])laaJiap11 HJia eKBHBaJieHT

MY)J)laanap haMHH pa3LDiaJIIMaJiapa Ila maMHJI ellHJialaKJUIP

Mazma 7

Ey Ca3mn OH)H ryssacmnm llajaHllLlp1gtDIMac11 harrLIHlla 6Hp h0JCYMamH 6amracLIHa

ja3LDILI xa6apllapJILir KeBllapllHjH KYffllaH em6apaH OH mm aj rypTapmanaK ryBBalla

4

Ey Ca3mrr OHYJI ryBBaCHHHH najaJmhlphIJIMac11 MlIThIHJla 6Hp h9KYMaTHH 6amrac1ma

ja31m11 xa6apnapn1ir xeimapmjH KYJIAaH eTH6apaH OH HKH aj ryprnpaHaiaK ryBBana

ranalarr(hlp Ey Ca3HIDHH ryBBaCH najaimiIphIJiaH3l(aK hap haHClI BaxTna BepIDiaH Ta 11 MHHaTa

Baja 6op1IBapa KaJllHKna Hca 6ena Ta 11 MHHaT Baja 6op1IBap 6apacHHla Ca3mrrHH wpmaanap11

OHYJI ryBBaCHHHH najaJmhlphIJIJllIFlI BaxTna eTH6apaH HjHpMH IDI ap3HHJla ryBBana

ranaarJllIp

Ey Ca3Hill 6apaCHHla 93 KOHCTHTYCHja Ba ja nmrap hyryrH Tana6napHH jepHHa

jeTHpJlHjHHH A3ap6ajlaH heKYMaTHHHH AMepHKa EHpnamMHID lliTaTnapMHhIH heKyMaTHHa

6HJllHPJlHjH KyH 6y Ca3Hill ryBBaja MHHalaKnHp

BamHHITOJma 1992-qH IDI ceHrja6p1m 28-na HKH Hycxana HHKIDIHC lIDIHJma

HM3aJJaHMhlilllhlp A3ap6ajqaH lHJlHfmaKH MaTH ha3h1pJlaHhI6 EaKhl mahapHHla HM3aJJaHaqar

Ba HHKHJlHC lIDIHHla HM3aJlaHMhlill Ca3HIDHH MaTHH IDia TaM YiFYH onaqarlhlp

A3gPEAJl+IAHAMEPHKA EHPJigIIIMHIII

PECIIYEJIHKACblHbIH h8KYMgTJ1IIITATJIAPblHbIH h8KYMgTJ1

TgpgltJgtlfHIlgHTgpgltJgtlfHIlgH

T rACblMOB ltlgtPEIl M 3EIlEP

MaH TaCJlHf enHpaM KH A3ap6ajqaH lHJlHHlaKH 6y TaM YiFYH MaTH 1992 - IH

IDI ceHTja6p11H 28-na HM3aJlaHMhlill Ca3Hma MYBaqmr maKHJlla ha3hlpJlaHMhlillJl1Ip

AMEPHKA ElfPJigIIIMHIII A3gPEAJIAH PECIIYEJIHKACbl

IIITATJIAPbl h8KYMgTJ1

EaKhI mahapH 1993-qy IDI neKa6p11H 14

5

Page 6: Agreement Between the UNITED STATES OF AMERICA and AZERBAIJAN

- 3 -

Azerbaijan relating to any transfer succession or other

acquisition described in paragraph (a) of this Article In

all other cases tax treatment of transactions conducted by

the Issuer in Azerbaijan as well as tax liabilities

existing prior to such transfer succession or other

acquisition shall be determined by applicable law of

Azerbaijan or any applicable specific agreement between the

Governme nt of the United Sta tes and the Government of

Azerbaijan

ARTICLE 3

To the extent that the laws of Azerbaijan partially or

wholly invalidate o r prohibit the transfer succession or

other a cquisition as described in Ar ticle 2(a) o f this

Agre ement o f any interes t in any p r operty within t h e

territory of Azerbaijan by the Issuer the Government of

Azerbai jan shall permit t he Issuer to make appropr i a te

arrangeme n ts pursuant to which s u ch interests a re

transferred to a person or entity permitted to own such

i nteres t s under the laws o f Azerba ijan

ARTICLE 4

(a) Amount s in the c u rren cy of Azerba ijan inc luding

credits t h e reof acquired by t he Issuer in connecti o n with

paymen t t o a part y under Cov e rage s h a l l be accord ed

t r eatment in the ter ritory of Azerba ijan no less f avorable

- 4 -

as to use and conversion than the treatment to which such

funds would be entitled in the hands of the party under

Coverage

(b) Such amounts and credits may be transferred by the

Issuer to any person or entity and upon such transfer shall

be freely available for use by such person or entity in the

territory of Azerbaijan in accordance with its laws

(c) The provisions of this Article shall also apply to

any amounts and credits in the currency of Azerbaijan which

may be accepted by the Issuer in settlement of obligations

with respect to loans made by the Issuer for projects in

Azerbaijan

ARTICLE 5

(a) Any dispute between the Government of the United

States of America and the Government of Azerbaijan regarding

the interpretation of this Agreement or which in the

opinion of one of the Governments presents a question of

international law arising out of any project or activity for

which Coverage has been issued shall be resolved insofar as

possible through negotiations between the two Governments

If at the end of six months following the request for

negotiations the two Governments have not resolved the

dispute by agreement the dispute including the question of

whether such dispute presents a question of international

law shall be submitted at the initiative of either

- 5 -

Government to an arbitral tribunal for resolution in

accordance with paragraph (b) of this Article

(b) The arbitral tribunal referred to in paragraph (a)

of this Article shall be established and function as

follows

(i) Each Government shall appoint one arbitrator

these two arbitrators shall by agreement designate a

president of the arbitral tribunal who shall be a

citizen of a third state and whose appointment shall be

subject to acceptance by the two Governments The

arbitrators shall be appointed within three months and

the president within six months of the date of receipt

of either Governments request for arbitration If the

appointments are not made within the foregoing time

limits either Government may in the absence of any

other agreement request the Secretary-General of the

Permanent Court of Arbitration to make the necessary

appointment or appointments and both Governments agree

to accept such appointment or appointments

(ii) The arbitral tribunal shall base its

decision on the applicable principles and rules of

international law The arbitral tribunal shall decide

by majority vote Its decision shall be final and

binding

( iii ) During the proceedings each of the

Governments shall pay the expense of its arbitrator and

- 6 -

of its representation in the proceedings before the

arbitral tribunal whereas the expenses of the

president and other costs of arbitration shall be paid

in equal parts by the two Governments In its award

the arbitral tribunal may in its discretion

reallocate expenses and costs between the two

Governments

(iv) In all other matters the arbitral tribunal

shall regulate its own procedures

(c) Nothing in this Agreement shall limit the right of

the Government of the United States of America to assert a

claim under international law in its sovereign capacity as

distinct from any rights of the Issuer

ARTICLE 6

The two Governments desiring reciprocity agree that

in the event the Government of Azerbaijan makes arrangements

to issue Coverage or make loans for projects in the United

States of America under a program similar in substance to

the investment incentive program to which this Agreement

relates provisions equivalent to those of this Agreement

shall apply with respect to such arrangements upon

completion of the constitutional or other legal processes of

both Governments approving such provisions

- 7 -

ARTICLE 7

This Agreement shall continue in force until the

expiration of twelve months from the date on which either

Government shall have given written notice of termination of

this Agreement to the other Provided that in respect of

Coverage issued or loans made at any time before the

termination of this Agreement its provisions shall continue

in effect with respect to such Coverage or loans for a

period of twenty years after the date of termination of this

Agreement

This Agreement shall enter into force on the date on which

the Government of Azerbaijan notifies the Government of the

United States of America that all necessary legal requirements

for entry into force of this Agreement have been fulfilled

Done at Washington on the 28th day of September 1992 in

duplicate in the English language An Azerbaijan language text

shall be prepared which shall be signed in Baku and shall be

considered equally authentic

For the Government of For the Government of THE UNITED STATES OF AMERICA AZERBAIJAN

AMEPHKA EHPJigIIIMHIII IIITATJIAPbl h8KYMgTJ1 HJig

A3gPEAJTIAH PECilYEJIHKACbl h8KYMgTJ1 APAChlH)lA KAI1HTAJI

ffiJYJIYIIIYHA KeMgK hAITblH)lA

CA3HIII

AMepHKa EHpJiaIIIMIDII IIIrnrnap1gt1 heK)MaTH Ba A3ap6ajqaJI Pecny6JIHKac1gt1

h0K)MaTH

A3ap6ajTJaH Pecny6JIHKaCbIHUa HITHCaUH ehTHjarnapbIH Ba HCTehCaJI IlOTeHCHaJihIHblH

HHKmrracpbIHa K0MaK enaH TacappycpaT ltpaaJIHjjaTHHa paBaTJ BepMaK ap3YCYHUa jeKUHJI

onnyrnap1gtIHhI 6ajaH euapaK

AMepHKa EHpJiaIIIMIDII lliTaTJiapbl heK)MaTHHHH TaMaMHJia Ba ja rncMaH TaMHH

eTnHjH Ba AMepHKa EHpJiaIIIMHIII lliTaTJiapbI heK)MaTHHHH axeHTJIHjH OJiaH XapHliilI XycycH

HHBeCTHcHjanap KoprropacHjac1gtrn1gtrn (Overseas Private Investment Corporation) (OllHK)

HDapa eTIJHjH KaITHTaJI rojyJiyIIIYHYH CbIFOpTaJiaHMaCblHhIH 0 IYMJiaDaH TaKpap

ChIFOpTaJiaHMaCblHhIH 6opqnap Ba 3aMaHaTJiap BepHJIMaCHHHH haMHH Marcaua qaTMaFa KeMaK

ena 6HJialajHHH TacnHr enapaK

aIIIaIblJJaKhmap 6apaua pa3hIDbIFa KaJIMHIIIJiap

Ta11

Ey Ca3HIIIDa 11

MHHaT TepMHHH EMHTeHTHH11

BepnHjH Ba A3ap6ajTJaH apa3HCHHDa

HHBeCTHCHja najHhaCH HJia anaranap OJiapar KaITHTaJI rojyJiyIIIYHYH hap haHCbl IIIaKHJIDa

CblFOpTaJiaHMaCbIHa TaKpap CbIFOpTaJiaHMaCbIHa Ba 3aMaHaTHHa aMDDHp EMHTeHT11 TepMHHH

OllHK-a Ba AMepHKa EHpJiaIIIMHIII IIIrnrnap1gtIH1gtIH OllHK-HH hyryrH BapHcH oJiaH hap

haHCbl axeHTJIHjHH Ba 6YHJiapnaH hap haHCbl 6HpHHHH caJiahHjjaTJIH HYMajaHnacHHa aMDDHp

(a) (I) g1Cap EMHTeHT TaMHHaTUaH HCTHltpaUa enaH hap haHCbl TapacpHH xejpHHa

enaHHIII hajaTa KeqHpapca A3ap6ajTJaH h0K)MaTH 6y Ca3HIIIHH 3-TJy MaUDacHHHH

MVULJaaJiap1gtIH1gt1 Ha3apa anapar EMHTeHTa TaMHHaT acac1gtrnna enaHHIIIHH hajaTa KeqHpHJIMacH

HJia 6aFJihl OJiaH hap haHCbl aMJiaK capBaTJiapH 0 IYMJiaUaH KaIDITaJI rojynyIIIy IIYJI BaCaHTH

Ba ja 6ena Kperorrnap KY3aIIIT e)lIDIUHjHHII ha6ena 6yttyima 6aFJ1bI hap haHCbI hyryr

MYJIKHjjaT hyryry H)lrolanap HMTHja3Jiap Baja 6yttyima anara)lap onapar Mej)laHa 1JbIXaH Baja

Mej)laHa 1Ihixa 6HJ1alaK MahKaMa HZIUHaCbI HpanH cypMaK yqytt acacnap 6apacmma EMHTeHTHH

hyryr BapHCJ1HjHHH Tac)lIIT erorp

(II) gKap EMHTeHT Kpe)llfTOp KHMH 03 hyryrnapbIHbl hajaTa Ke~rnpapKaH hap haHCbl

aMJ1aK capBarnapH anapca Ba ja hap haHCbI hyryrnapbIH MYJIKHjjar H)lJlHanap HMTHja3Jiap

hyryrytt)H Ba ja MahKaMa HZIUHaCbI yqytt acacnapbIH BapHCHHa qeBpHJ1apca A3ap6ajlaH

h0K)7MaTH 6y Ca3HIIIHH 3-ly MaroiacHHa YiFYH onapar 6yimapbIH aJlbIH)lbIFbIHbl Ba ja MHpac

ran)lbIFbIHbl TaC)lHr ellHp

(6) EMHTeHT TapaqmH MaJlHK OJl)lYJY Ba 6y MarolaHHH (a) rraparpaltpbIH)la

KecTapmm1-1jH raj)la)la KY3amT eT)llfjH h yryrnapJlaH ycTytt h yryr Tana6 eTMajalaKJlHp

(B) AMepHKa EHpnaIIIMHIII lllTarnapbIHbIH rejpH-THJapaT ruceHTJ1HjH KHMH EMHTeHT

6apaclfH)la THJapar CbIFoprncbI Ba ManHjja TaIIIKlfJlarnapbrna aHJl e)llfJlaH Ba A3ap6ajJaH

Pecrry6nHKaCbI raHyttBepHJlfJlHjHH)la Ha3ap)la TYTynaH MY)Jllaanap IIIaMlfJl e)llfJlMajaJaK)lHp

(r) EMHTeHTHH Tar)lHM eT)lHjH Ba ja 3aMaHaT IIIaKJ1HH)la Bep)llfjH 6opqnap Y3pa

cpamnap Ba e)laManap A3ap6ajJaH)la BepKHJ1apllaH a3a)l e)llfJlaJaK)lHp (a) rraparpacp1rna

MYBaltp11r cypar)la hyryrnapbIH 6aIIIracbIHa BepHJ1Mac1-1 hyryr BapHcnHjH Ba ja JlHKap

hyryrnapbrn an)la e)lHJ1MacHHa Kepa EMHTeHTJlaH A3ap6ajJaH)la BepKH TYTYJ1MajaJar)lbip

EMHTeHTIIH A3ap6ajJaH)la hajaTa Keq11p)lHjH 6aIIIra aMan11jjarnapbIH BepKH pe)KHMH ha6ena

hyryrnapbIH 6amracbIHa BeplfJlMacHH)laH Ba hyryr BapHCJ1HjHH)laH hyryrnapbIH KY3aIIIT

e)llfJlMaCHH)laH Ba ja 6amracbrna Ke~aCHHJlaH aBBaJ1KH BepKH eh)laJ1HKJ1apH A3ap6ajJaH

Pecrry6nHKaCbIHbIH ryBBa)la ony6 TaT6Hr e)llfJlaH raHyttBepHJlfJlHjH lfJla Ba AMepHKa

EHpnaIIIMHIII IIITarnapbI heK)MaTH HJ1a A3ap6ajJaH Pecrry6nHKaCbIHbIH heK)MaTH apacbIH)la

xycycH Ca3Hm 6aFnaHapca haMHH Ca3HIIIJ1a ~jjaH e)llfJlaJaK)lHp

Maroia 3

Ey Ca3HIIIBH 2 (a) MarolaCHH)la K0CTaplfJ1)lHjH KHMH A3ap6ajJaH Pecrry6nHKaCbl

apa3HCHH)la EMHTeHT TapaltplfH)laH hap haHCbl MYJIKHjjaTHH hap haHCbl rrajbIHbIH

BeplfJlMaCHHHH MHpac rojynMaCbIHbIH an)la e)llfJlMaCHHIIH A3ap6ajJaH Pecrry6nHKaCbl

raHyimapbI lfJla mcMaH Ba TaM e11TH6apcbI3 heca6 e)llfJlMacH Ba jaxYJl ra)laFaH onyttMaCbI

Tar)llfp)la A3ap6ajqaH Pecrry6nHKaCbl h0K)7MaTH EMHTeHTa haMHH rrajbIHbl A3ap6ajJaH

raHyimapbrna Kepa 6ena rraja MaJlHK onMar hyryry ltpH3HKH Ba hyryrH maxcnapa BepHJ1MacH

yqytt YiFYH Ta)l6Hpnap K0pMaja HJa3a BepHp

2

(a) EMHTeHTIIH 6eJia TaMHHaTJia anaranap onapar A3ap6aJqaH BaJijyracLI HJia

aJID1IFIJ BacaHTnaH o -qyMJianaH 6y Banjyra HJia aJIDJIFIJ Kpe)UITJiapnaH HCTHqgtana ezumMacH na

OHJiapLIH K81fYPYJIMOCH yqyH A3ap6aJqaH ap83HCHHDa TaMHHaTDaH HCTHqgtana enaH Tapaltpa

Maxcyc BacaHTa japaIUIllaH peXHM EMHTeHTa japaIUIJiaH pe)KHM]JaH helI na arrnepHIIICH3

oJIMajalamLIJgt

(6) EMHTeHT 6y BacaHTHH Ba Kpe)UITnapH hap haHCLI maxca sa ja TamKHJiaTa nepa

6HJiap Ba 6yayH acacLJ1ma haMHH maxc na ja TamKHJiaT oHJiapnm A3ap6aj-qm ap83Hcmma

OHH MaHacpejm1a xanan xampManaH sa OHH raHHBepINBJIHjHHa MYB3qnrr cypalna cap6acT

acrncpana ena 6HJialaKZJKP

(B) 4--qy MannaHHH MY)maanap11 haMlIHHHH A3ap6ajlaHlla najmianap yqyH EMHTeHTHH

TalZJHM ernujH 6opIJiap YJpa ab)laJIHKJiapHH TaH3HMJiaHMacmma EMHTeHTHH A3ap6ajlaH

BaJijyrac11 HJia ra6yn ena 6HJialajH Ma6narnapa Ba Kpe)UITnapa na maMHJI eDHJialaKlJHP

(a) AMepHKa EapnamMHIII IllTaTJiap1gt1HLIH haxyMam Ba A3ap6ajlaH Pecny6mmac11

haKYMam apac1mna 6y C83HmHH TaqgtCHpHHa aH) OJiaH sa ja h8KYMalJiapnaH 6apHHHH

qgtHKpHHla Ta11MHHaTL1 aJILIHMLim hap haHCLI najmia sa ja cpaamrjjaI HJia anaranap onapar

MejDaHa lILJXaH 6ejHaJIXaJII hyryI MacaJiacHHa aH) MY(5ahHca HMKaH DaxHJIHHDa HKH h8KYMaI

apac1mna ZJaHLIIIILilJiap joey HJia apanaH raJIJUgtIpLDialaJJUgtIp JlaHLIIIILIIJiap KelIHpHJIMOCH

harnnma XahHIIIJia MYJgtaIHOO elUf]IZJHKJJaH coHpa axap aJITLI aj ap3HHDa HKH h8K)MOO I

rapmLDILilJILI p83LDILif acac1mna MY(ahHcaHH apanaH raJIDJIpM83ca MY(ahHca o IYMJlanaH I

haMHH MY(ShHcaHHH 6ejHaJIXaJir hyryra aH) OJIY6-0JIMaMaCLI MacaJiacH 6y MaunaHHH (6)

naparpaltp1gtIHa MBaqnrr cypOOna apanm raJIDLipLDIMar yqyH h8KYMOOJiapnan hap haHCLI

6apHHHH Tama66ycy HJia MYHCHltpJiap MahKaMacHHa nepHJialaKZJKP

(6) My6aEiHcanapH 6y MannaHHH (a) rraparpaltpLIHa M(BaltpHI cypOOna apaum

raJIJUgtIpMar yqyH MlplCHltpJiap MahKaMacH amaFLruan1 rajnana jap3llLDiaar Ba HIIIJiajalaKZJHp

(1) hap h8K)MOO 6Hp MffCHltp Ta11jHH enalilaKlJHP Ey HKH MHCHltp rapmLDILIDThI

p83LDILif acacLIH)la hap HKH h8KYMOO TapacpmmaH TajHH e)lHJIMacH 6ajaHHJiaH na yqya-qy

neMalHH BaTalfllamLI OJiaH canp11 MyajjaHJiaIIJDHPHp MYffCHltpJiap yq aj ap3HlfJla caJlP 11ca

MplCHltpJiap MahKaMacmma apaIDZJIIpMa harnnma h8KyMOOJiapHH hap haHCLI 6apHHHH

MPaHam aJILIHllLIFLI xyel(aH em6apaH aJITLI aj ap3mma TajHH enHJIM~ Ey

3

NjHHaTJiap jyxaplJ)Ja llejHJiaH MY)])larnap ap3HHlla hajaTa KellHpHJIMa3ca 6amra pa3LDiaJIIMa

oJIMazu1ma h0KMaTJiapHH hap haHC1gt1 6HpH HlmecTHc11ja My68hllcarrapmnm apanaH

raJIlllIp1gtD1Mac11 Y3pa Uamm Ap611Tpax MahKaMacmnm Earn Kam6HHllaH X3hlllll ela 6HJiap

KH Jia3bIMH NjHHaTLI Baja NjHHarnap11 hajaTa KellHpCHH Ey haJIlla hap mm h0KMaT 6y

TajHHaTbI Baja Ta11jHHaTJiapLI ra6YJI eTMaja pa3LI OJIamplalllblp

(2) MYHCHltpJiap MahKaMacH 03 rapap1gt1Hlla 6ejHaJIXaJir hyryryH TaT611r ellHJiaH

rrpHHcinIJiapHHa Ba HOpMaJiap1rna acacJiaHalarllLlp MYfICHltpJiap MahKaMacH rapapLI cac

qoxnyry HJia ra6YJI ellllp OH)H rapap11 raTH oJialaIlllIp Ba heKMaH jepHHa jempHJIMaJIBIlllp

(3) TahIHIaT 3aMaH1gtI h0KMaTJiapHH hap 6HpH 03 MYHCHltpmnm xapIJiapmm Ba

MYHCHltpJiaH MahKaMacHHlla rrpocellYJ)JIampplla TaMcHJI OJIYHMac1rna xapIJiapH ellajalaK callp

yqyH xapIJiap Ba MYHCHltpJiap MahKaMacHHlla apamllbipMaHbm 6amra xapIJiap11 11ca HKH

h0KMaT TapaqgtHHllaH 6apa6ap hHccarrapJia ellaHHJialaK)Ulp MYfICHltpJiap MahKaMacH 03

rapapLIHlla xapIJiapHH Ba ellammIJiapHH mm h0KMaT apac1gt1Hlla 6eJIYIIInYPYJIMacmnm

rrponopc11jaJiapLIHLI 03 MYJI8h113acHHa Kapa llajmnruqgta 6HJiap

(4) EyryH llHl(ap MacaTiaTiap 6apacHHlla MYHCHltpJiap MahKaMacH 03 rrpocem

rajllaJiapLIHLI ~jaH ellllp

(B) Ey Ca3mnzia heq Ha AMepHKa nHpJiaIIIMmII lIITaTJiapLIH heKMaIHIIHH

EMHTeHTHH hap haHCLI hYJYlIlapLIHllaH ltpaprmt cysepeH ll0BJiaT oJiapar EejHaJIXaJir h yryra

yjryH TaTia6 HpaTIH cypMaK h YJYlIlapLIHbI MahllY)Vlamllbipa 6HJIMa3

Mazma 6

hap HKH h0KMaT rapIIllDILirnbI Ha3aKaT xaTHpHHa pa3LDla1Il1IpJiap KH aKap

A3ap6ajlaH heKMam AMepHKa 6HpJiaIIIMmII lIITaTJiap1gtIHlla JiajHhaTiap yqyH Ma3MYHYffa

Kapa mmecmcitjaJiapa KeMaK rrporpaMLma 6aH3ajaH jaHH 6y Ca3mna 6aH3ajaH rrporpaMa

yjFH cypaTlla NMHHaT Ba ja 6op1 sepHJIMacH 6apalla pa3LDiamMa aTl)la ellapca 6eJIa

pa3bDlamMaJiapLI hap HKH h0KMaTHH 6ajaHMacH yqyH KOHCTIIT)7Cltja Ba llHKap raH)H

rrpocellYJ)aJiapLIHLI 6ama qaTllblpllblIllaH coHpa 6y Ca3mIIHH MY)])laaJiap11 HJia eKBHBaJieHT

MY)J)laanap haMHH pa3LDiaJIIMaJiapa Ila maMHJI ellHJialaKJUIP

Mazma 7

Ey Ca3mn OH)H ryssacmnm llajaHllLlp1gtDIMac11 harrLIHlla 6Hp h0JCYMamH 6amracLIHa

ja3LDILI xa6apllapJILir KeBllapllHjH KYffllaH em6apaH OH mm aj rypTapmanaK ryBBalla

4

Ey Ca3mrr OHYJI ryBBaCHHHH najaJmhlphIJIMac11 MlIThIHJla 6Hp h9KYMaTHH 6amrac1ma

ja31m11 xa6apnapn1ir xeimapmjH KYJIAaH eTH6apaH OH HKH aj ryprnpaHaiaK ryBBana

ranalarr(hlp Ey Ca3HIDHH ryBBaCH najaimiIphIJiaH3l(aK hap haHClI BaxTna BepIDiaH Ta 11 MHHaTa

Baja 6op1IBapa KaJllHKna Hca 6ena Ta 11 MHHaT Baja 6op1IBap 6apacHHla Ca3mrrHH wpmaanap11

OHYJI ryBBaCHHHH najaJmhlphIJIJllIFlI BaxTna eTH6apaH HjHpMH IDI ap3HHJla ryBBana

ranaarJllIp

Ey Ca3Hill 6apaCHHla 93 KOHCTHTYCHja Ba ja nmrap hyryrH Tana6napHH jepHHa

jeTHpJlHjHHH A3ap6ajlaH heKYMaTHHHH AMepHKa EHpnamMHID lliTaTnapMHhIH heKyMaTHHa

6HJllHPJlHjH KyH 6y Ca3Hill ryBBaja MHHalaKnHp

BamHHITOJma 1992-qH IDI ceHrja6p1m 28-na HKH Hycxana HHKIDIHC lIDIHJma

HM3aJJaHMhlilllhlp A3ap6ajqaH lHJlHfmaKH MaTH ha3h1pJlaHhI6 EaKhl mahapHHla HM3aJJaHaqar

Ba HHKHJlHC lIDIHHla HM3aJlaHMhlill Ca3HIDHH MaTHH IDia TaM YiFYH onaqarlhlp

A3gPEAJl+IAHAMEPHKA EHPJigIIIMHIII

PECIIYEJIHKACblHbIH h8KYMgTJ1IIITATJIAPblHbIH h8KYMgTJ1

TgpgltJgtlfHIlgHTgpgltJgtlfHIlgH

T rACblMOB ltlgtPEIl M 3EIlEP

MaH TaCJlHf enHpaM KH A3ap6ajqaH lHJlHHlaKH 6y TaM YiFYH MaTH 1992 - IH

IDI ceHTja6p11H 28-na HM3aJlaHMhlill Ca3Hma MYBaqmr maKHJlla ha3hlpJlaHMhlillJl1Ip

AMEPHKA ElfPJigIIIMHIII A3gPEAJIAH PECIIYEJIHKACbl

IIITATJIAPbl h8KYMgTJ1

EaKhI mahapH 1993-qy IDI neKa6p11H 14

5

Page 7: Agreement Between the UNITED STATES OF AMERICA and AZERBAIJAN

- 4 -

as to use and conversion than the treatment to which such

funds would be entitled in the hands of the party under

Coverage

(b) Such amounts and credits may be transferred by the

Issuer to any person or entity and upon such transfer shall

be freely available for use by such person or entity in the

territory of Azerbaijan in accordance with its laws

(c) The provisions of this Article shall also apply to

any amounts and credits in the currency of Azerbaijan which

may be accepted by the Issuer in settlement of obligations

with respect to loans made by the Issuer for projects in

Azerbaijan

ARTICLE 5

(a) Any dispute between the Government of the United

States of America and the Government of Azerbaijan regarding

the interpretation of this Agreement or which in the

opinion of one of the Governments presents a question of

international law arising out of any project or activity for

which Coverage has been issued shall be resolved insofar as

possible through negotiations between the two Governments

If at the end of six months following the request for

negotiations the two Governments have not resolved the

dispute by agreement the dispute including the question of

whether such dispute presents a question of international

law shall be submitted at the initiative of either

- 5 -

Government to an arbitral tribunal for resolution in

accordance with paragraph (b) of this Article

(b) The arbitral tribunal referred to in paragraph (a)

of this Article shall be established and function as

follows

(i) Each Government shall appoint one arbitrator

these two arbitrators shall by agreement designate a

president of the arbitral tribunal who shall be a

citizen of a third state and whose appointment shall be

subject to acceptance by the two Governments The

arbitrators shall be appointed within three months and

the president within six months of the date of receipt

of either Governments request for arbitration If the

appointments are not made within the foregoing time

limits either Government may in the absence of any

other agreement request the Secretary-General of the

Permanent Court of Arbitration to make the necessary

appointment or appointments and both Governments agree

to accept such appointment or appointments

(ii) The arbitral tribunal shall base its

decision on the applicable principles and rules of

international law The arbitral tribunal shall decide

by majority vote Its decision shall be final and

binding

( iii ) During the proceedings each of the

Governments shall pay the expense of its arbitrator and

- 6 -

of its representation in the proceedings before the

arbitral tribunal whereas the expenses of the

president and other costs of arbitration shall be paid

in equal parts by the two Governments In its award

the arbitral tribunal may in its discretion

reallocate expenses and costs between the two

Governments

(iv) In all other matters the arbitral tribunal

shall regulate its own procedures

(c) Nothing in this Agreement shall limit the right of

the Government of the United States of America to assert a

claim under international law in its sovereign capacity as

distinct from any rights of the Issuer

ARTICLE 6

The two Governments desiring reciprocity agree that

in the event the Government of Azerbaijan makes arrangements

to issue Coverage or make loans for projects in the United

States of America under a program similar in substance to

the investment incentive program to which this Agreement

relates provisions equivalent to those of this Agreement

shall apply with respect to such arrangements upon

completion of the constitutional or other legal processes of

both Governments approving such provisions

- 7 -

ARTICLE 7

This Agreement shall continue in force until the

expiration of twelve months from the date on which either

Government shall have given written notice of termination of

this Agreement to the other Provided that in respect of

Coverage issued or loans made at any time before the

termination of this Agreement its provisions shall continue

in effect with respect to such Coverage or loans for a

period of twenty years after the date of termination of this

Agreement

This Agreement shall enter into force on the date on which

the Government of Azerbaijan notifies the Government of the

United States of America that all necessary legal requirements

for entry into force of this Agreement have been fulfilled

Done at Washington on the 28th day of September 1992 in

duplicate in the English language An Azerbaijan language text

shall be prepared which shall be signed in Baku and shall be

considered equally authentic

For the Government of For the Government of THE UNITED STATES OF AMERICA AZERBAIJAN

AMEPHKA EHPJigIIIMHIII IIITATJIAPbl h8KYMgTJ1 HJig

A3gPEAJTIAH PECilYEJIHKACbl h8KYMgTJ1 APAChlH)lA KAI1HTAJI

ffiJYJIYIIIYHA KeMgK hAITblH)lA

CA3HIII

AMepHKa EHpJiaIIIMIDII IIIrnrnap1gt1 heK)MaTH Ba A3ap6ajqaJI Pecny6JIHKac1gt1

h0K)MaTH

A3ap6ajTJaH Pecny6JIHKaCbIHUa HITHCaUH ehTHjarnapbIH Ba HCTehCaJI IlOTeHCHaJihIHblH

HHKmrracpbIHa K0MaK enaH TacappycpaT ltpaaJIHjjaTHHa paBaTJ BepMaK ap3YCYHUa jeKUHJI

onnyrnap1gtIHhI 6ajaH euapaK

AMepHKa EHpJiaIIIMIDII lliTaTJiapbl heK)MaTHHHH TaMaMHJia Ba ja rncMaH TaMHH

eTnHjH Ba AMepHKa EHpJiaIIIMHIII lliTaTJiapbI heK)MaTHHHH axeHTJIHjH OJiaH XapHliilI XycycH

HHBeCTHcHjanap KoprropacHjac1gtrn1gtrn (Overseas Private Investment Corporation) (OllHK)

HDapa eTIJHjH KaITHTaJI rojyJiyIIIYHYH CbIFOpTaJiaHMaCblHhIH 0 IYMJiaDaH TaKpap

ChIFOpTaJiaHMaCblHhIH 6opqnap Ba 3aMaHaTJiap BepHJIMaCHHHH haMHH Marcaua qaTMaFa KeMaK

ena 6HJialajHHH TacnHr enapaK

aIIIaIblJJaKhmap 6apaua pa3hIDbIFa KaJIMHIIIJiap

Ta11

Ey Ca3HIIIDa 11

MHHaT TepMHHH EMHTeHTHH11

BepnHjH Ba A3ap6ajTJaH apa3HCHHDa

HHBeCTHCHja najHhaCH HJia anaranap OJiapar KaITHTaJI rojyJiyIIIYHYH hap haHCbl IIIaKHJIDa

CblFOpTaJiaHMaCbIHa TaKpap CbIFOpTaJiaHMaCbIHa Ba 3aMaHaTHHa aMDDHp EMHTeHT11 TepMHHH

OllHK-a Ba AMepHKa EHpJiaIIIMHIII IIIrnrnap1gtIH1gtIH OllHK-HH hyryrH BapHcH oJiaH hap

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ran)lbIFbIHbl TaC)lHr ellHp

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2

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acrncpana ena 6HJialaKZJKP

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BaJijyrac11 HJia ra6yn ena 6HJialajH Ma6narnapa Ba Kpe)UITnapa na maMHJI eDHJialaKlJHP

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3

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KH Jia3bIMH NjHHaTLI Baja NjHHarnap11 hajaTa KellHpCHH Ey haJIlla hap mm h0KMaT 6y

TajHHaTbI Baja Ta11jHHaTJiapLI ra6YJI eTMaja pa3LI OJIamplalllblp

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rrpHHcinIJiapHHa Ba HOpMaJiap1rna acacJiaHalarllLlp MYfICHltpJiap MahKaMacH rapapLI cac

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(3) TahIHIaT 3aMaH1gtI h0KMaTJiapHH hap 6HpH 03 MYHCHltpmnm xapIJiapmm Ba

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pa3bDlamMaJiapLI hap HKH h0KMaTHH 6ajaHMacH yqyH KOHCTIIT)7Cltja Ba llHKap raH)H

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4

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BamHHITOJma 1992-qH IDI ceHrja6p1m 28-na HKH Hycxana HHKIDIHC lIDIHJma

HM3aJJaHMhlilllhlp A3ap6ajqaH lHJlHfmaKH MaTH ha3h1pJlaHhI6 EaKhl mahapHHla HM3aJJaHaqar

Ba HHKHJlHC lIDIHHla HM3aJlaHMhlill Ca3HIDHH MaTHH IDia TaM YiFYH onaqarlhlp

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PECIIYEJIHKACblHbIH h8KYMgTJ1IIITATJIAPblHbIH h8KYMgTJ1

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MaH TaCJlHf enHpaM KH A3ap6ajqaH lHJlHHlaKH 6y TaM YiFYH MaTH 1992 - IH

IDI ceHTja6p11H 28-na HM3aJlaHMhlill Ca3Hma MYBaqmr maKHJlla ha3hlpJlaHMhlillJl1Ip

AMEPHKA ElfPJigIIIMHIII A3gPEAJIAH PECIIYEJIHKACbl

IIITATJIAPbl h8KYMgTJ1

EaKhI mahapH 1993-qy IDI neKa6p11H 14

5

Page 8: Agreement Between the UNITED STATES OF AMERICA and AZERBAIJAN

- 5 -

Government to an arbitral tribunal for resolution in

accordance with paragraph (b) of this Article

(b) The arbitral tribunal referred to in paragraph (a)

of this Article shall be established and function as

follows

(i) Each Government shall appoint one arbitrator

these two arbitrators shall by agreement designate a

president of the arbitral tribunal who shall be a

citizen of a third state and whose appointment shall be

subject to acceptance by the two Governments The

arbitrators shall be appointed within three months and

the president within six months of the date of receipt

of either Governments request for arbitration If the

appointments are not made within the foregoing time

limits either Government may in the absence of any

other agreement request the Secretary-General of the

Permanent Court of Arbitration to make the necessary

appointment or appointments and both Governments agree

to accept such appointment or appointments

(ii) The arbitral tribunal shall base its

decision on the applicable principles and rules of

international law The arbitral tribunal shall decide

by majority vote Its decision shall be final and

binding

( iii ) During the proceedings each of the

Governments shall pay the expense of its arbitrator and

- 6 -

of its representation in the proceedings before the

arbitral tribunal whereas the expenses of the

president and other costs of arbitration shall be paid

in equal parts by the two Governments In its award

the arbitral tribunal may in its discretion

reallocate expenses and costs between the two

Governments

(iv) In all other matters the arbitral tribunal

shall regulate its own procedures

(c) Nothing in this Agreement shall limit the right of

the Government of the United States of America to assert a

claim under international law in its sovereign capacity as

distinct from any rights of the Issuer

ARTICLE 6

The two Governments desiring reciprocity agree that

in the event the Government of Azerbaijan makes arrangements

to issue Coverage or make loans for projects in the United

States of America under a program similar in substance to

the investment incentive program to which this Agreement

relates provisions equivalent to those of this Agreement

shall apply with respect to such arrangements upon

completion of the constitutional or other legal processes of

both Governments approving such provisions

- 7 -

ARTICLE 7

This Agreement shall continue in force until the

expiration of twelve months from the date on which either

Government shall have given written notice of termination of

this Agreement to the other Provided that in respect of

Coverage issued or loans made at any time before the

termination of this Agreement its provisions shall continue

in effect with respect to such Coverage or loans for a

period of twenty years after the date of termination of this

Agreement

This Agreement shall enter into force on the date on which

the Government of Azerbaijan notifies the Government of the

United States of America that all necessary legal requirements

for entry into force of this Agreement have been fulfilled

Done at Washington on the 28th day of September 1992 in

duplicate in the English language An Azerbaijan language text

shall be prepared which shall be signed in Baku and shall be

considered equally authentic

For the Government of For the Government of THE UNITED STATES OF AMERICA AZERBAIJAN

AMEPHKA EHPJigIIIMHIII IIITATJIAPbl h8KYMgTJ1 HJig

A3gPEAJTIAH PECilYEJIHKACbl h8KYMgTJ1 APAChlH)lA KAI1HTAJI

ffiJYJIYIIIYHA KeMgK hAITblH)lA

CA3HIII

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ran)lbIFbIHbl TaC)lHr ellHp

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Maroia 3

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2

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acrncpana ena 6HJialaKZJKP

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3

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AMEPHKA ElfPJigIIIMHIII A3gPEAJIAH PECIIYEJIHKACbl

IIITATJIAPbl h8KYMgTJ1

EaKhI mahapH 1993-qy IDI neKa6p11H 14

5

Page 9: Agreement Between the UNITED STATES OF AMERICA and AZERBAIJAN

- 6 -

of its representation in the proceedings before the

arbitral tribunal whereas the expenses of the

president and other costs of arbitration shall be paid

in equal parts by the two Governments In its award

the arbitral tribunal may in its discretion

reallocate expenses and costs between the two

Governments

(iv) In all other matters the arbitral tribunal

shall regulate its own procedures

(c) Nothing in this Agreement shall limit the right of

the Government of the United States of America to assert a

claim under international law in its sovereign capacity as

distinct from any rights of the Issuer

ARTICLE 6

The two Governments desiring reciprocity agree that

in the event the Government of Azerbaijan makes arrangements

to issue Coverage or make loans for projects in the United

States of America under a program similar in substance to

the investment incentive program to which this Agreement

relates provisions equivalent to those of this Agreement

shall apply with respect to such arrangements upon

completion of the constitutional or other legal processes of

both Governments approving such provisions

- 7 -

ARTICLE 7

This Agreement shall continue in force until the

expiration of twelve months from the date on which either

Government shall have given written notice of termination of

this Agreement to the other Provided that in respect of

Coverage issued or loans made at any time before the

termination of this Agreement its provisions shall continue

in effect with respect to such Coverage or loans for a

period of twenty years after the date of termination of this

Agreement

This Agreement shall enter into force on the date on which

the Government of Azerbaijan notifies the Government of the

United States of America that all necessary legal requirements

for entry into force of this Agreement have been fulfilled

Done at Washington on the 28th day of September 1992 in

duplicate in the English language An Azerbaijan language text

shall be prepared which shall be signed in Baku and shall be

considered equally authentic

For the Government of For the Government of THE UNITED STATES OF AMERICA AZERBAIJAN

AMEPHKA EHPJigIIIMHIII IIITATJIAPbl h8KYMgTJ1 HJig

A3gPEAJTIAH PECilYEJIHKACbl h8KYMgTJ1 APAChlH)lA KAI1HTAJI

ffiJYJIYIIIYHA KeMgK hAITblH)lA

CA3HIII

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h0K)MaTH

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ran)lbIFbIHbl TaC)lHr ellHp

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Maroia 3

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raHyimapbrna Kepa 6ena rraja MaJlHK onMar hyryry ltpH3HKH Ba hyryrH maxcnapa BepHJ1MacH

yqytt YiFYH Ta)l6Hpnap K0pMaja HJa3a BepHp

2

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oJIMajalamLIJgt

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acrncpana ena 6HJialaKZJKP

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TalZJHM ernujH 6opIJiap YJpa ab)laJIHKJiapHH TaH3HMJiaHMacmma EMHTeHTHH A3ap6ajlaH

BaJijyrac11 HJia ra6yn ena 6HJialajH Ma6narnapa Ba Kpe)UITnapa na maMHJI eDHJialaKlJHP

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6apHHHH Tama66ycy HJia MYHCHltpJiap MahKaMacHHa nepHJialaKZJKP

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(1) hap h8K)MOO 6Hp MffCHltp Ta11jHH enalilaKlJHP Ey HKH MHCHltp rapmLDILIDThI

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3

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raJIlllIp1gtD1Mac11 Y3pa Uamm Ap611Tpax MahKaMacmnm Earn Kam6HHllaH X3hlllll ela 6HJiap

KH Jia3bIMH NjHHaTLI Baja NjHHarnap11 hajaTa KellHpCHH Ey haJIlla hap mm h0KMaT 6y

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rrpHHcinIJiapHHa Ba HOpMaJiap1rna acacJiaHalarllLlp MYfICHltpJiap MahKaMacH rapapLI cac

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(4) EyryH llHl(ap MacaTiaTiap 6apacHHlla MYHCHltpJiap MahKaMacH 03 rrpocem

rajllaJiapLIHLI ~jaH ellllp

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EMHTeHTHH hap haHCLI hYJYlIlapLIHllaH ltpaprmt cysepeH ll0BJiaT oJiapar EejHaJIXaJir h yryra

yjryH TaTia6 HpaTIH cypMaK h YJYlIlapLIHbI MahllY)Vlamllbipa 6HJIMa3

Mazma 6

hap HKH h0KMaT rapIIllDILirnbI Ha3aKaT xaTHpHHa pa3LDla1Il1IpJiap KH aKap

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Kapa mmecmcitjaJiapa KeMaK rrporpaMLma 6aH3ajaH jaHH 6y Ca3mna 6aH3ajaH rrporpaMa

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Mazma 7

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4

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ranaarJllIp

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6HJllHPJlHjH KyH 6y Ca3Hill ryBBaja MHHalaKnHp

BamHHITOJma 1992-qH IDI ceHrja6p1m 28-na HKH Hycxana HHKIDIHC lIDIHJma

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Ba HHKHJlHC lIDIHHla HM3aJlaHMhlill Ca3HIDHH MaTHH IDia TaM YiFYH onaqarlhlp

A3gPEAJl+IAHAMEPHKA EHPJigIIIMHIII

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TgpgltJgtlfHIlgHTgpgltJgtlfHIlgH

T rACblMOB ltlgtPEIl M 3EIlEP

MaH TaCJlHf enHpaM KH A3ap6ajqaH lHJlHHlaKH 6y TaM YiFYH MaTH 1992 - IH

IDI ceHTja6p11H 28-na HM3aJlaHMhlill Ca3Hma MYBaqmr maKHJlla ha3hlpJlaHMhlillJl1Ip

AMEPHKA ElfPJigIIIMHIII A3gPEAJIAH PECIIYEJIHKACbl

IIITATJIAPbl h8KYMgTJ1

EaKhI mahapH 1993-qy IDI neKa6p11H 14

5

Page 10: Agreement Between the UNITED STATES OF AMERICA and AZERBAIJAN

- 7 -

ARTICLE 7

This Agreement shall continue in force until the

expiration of twelve months from the date on which either

Government shall have given written notice of termination of

this Agreement to the other Provided that in respect of

Coverage issued or loans made at any time before the

termination of this Agreement its provisions shall continue

in effect with respect to such Coverage or loans for a

period of twenty years after the date of termination of this

Agreement

This Agreement shall enter into force on the date on which

the Government of Azerbaijan notifies the Government of the

United States of America that all necessary legal requirements

for entry into force of this Agreement have been fulfilled

Done at Washington on the 28th day of September 1992 in

duplicate in the English language An Azerbaijan language text

shall be prepared which shall be signed in Baku and shall be

considered equally authentic

For the Government of For the Government of THE UNITED STATES OF AMERICA AZERBAIJAN

AMEPHKA EHPJigIIIMHIII IIITATJIAPbl h8KYMgTJ1 HJig

A3gPEAJTIAH PECilYEJIHKACbl h8KYMgTJ1 APAChlH)lA KAI1HTAJI

ffiJYJIYIIIYHA KeMgK hAITblH)lA

CA3HIII

AMepHKa EHpJiaIIIMIDII IIIrnrnap1gt1 heK)MaTH Ba A3ap6ajqaJI Pecny6JIHKac1gt1

h0K)MaTH

A3ap6ajTJaH Pecny6JIHKaCbIHUa HITHCaUH ehTHjarnapbIH Ba HCTehCaJI IlOTeHCHaJihIHblH

HHKmrracpbIHa K0MaK enaH TacappycpaT ltpaaJIHjjaTHHa paBaTJ BepMaK ap3YCYHUa jeKUHJI

onnyrnap1gtIHhI 6ajaH euapaK

AMepHKa EHpJiaIIIMIDII lliTaTJiapbl heK)MaTHHHH TaMaMHJia Ba ja rncMaH TaMHH

eTnHjH Ba AMepHKa EHpJiaIIIMHIII lliTaTJiapbI heK)MaTHHHH axeHTJIHjH OJiaH XapHliilI XycycH

HHBeCTHcHjanap KoprropacHjac1gtrn1gtrn (Overseas Private Investment Corporation) (OllHK)

HDapa eTIJHjH KaITHTaJI rojyJiyIIIYHYH CbIFOpTaJiaHMaCblHhIH 0 IYMJiaDaH TaKpap

ChIFOpTaJiaHMaCblHhIH 6opqnap Ba 3aMaHaTJiap BepHJIMaCHHHH haMHH Marcaua qaTMaFa KeMaK

ena 6HJialajHHH TacnHr enapaK

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Ta11

Ey Ca3HIIIDa 11

MHHaT TepMHHH EMHTeHTHH11

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CblFOpTaJiaHMaCbIHa TaKpap CbIFOpTaJiaHMaCbIHa Ba 3aMaHaTHHa aMDDHp EMHTeHT11 TepMHHH

OllHK-a Ba AMepHKa EHpJiaIIIMHIII IIIrnrnap1gtIH1gtIH OllHK-HH hyryrH BapHcH oJiaH hap

haHCbl axeHTJIHjHH Ba 6YHJiapnaH hap haHCbl 6HpHHHH caJiahHjjaTJIH HYMajaHnacHHa aMDDHp

(a) (I) g1Cap EMHTeHT TaMHHaTUaH HCTHltpaUa enaH hap haHCbl TapacpHH xejpHHa

enaHHIII hajaTa KeqHpapca A3ap6ajTJaH h0K)MaTH 6y Ca3HIIIHH 3-TJy MaUDacHHHH

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hyryr BapHCJ1HjHHH Tac)lIIT erorp

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aMJ1aK capBarnapH anapca Ba ja hap haHCbI hyryrnapbIH MYJIKHjjar H)lJlHanap HMTHja3Jiap

hyryrytt)H Ba ja MahKaMa HZIUHaCbI yqytt acacnapbIH BapHCHHa qeBpHJ1apca A3ap6ajlaH

h0K)7MaTH 6y Ca3HIIIHH 3-ly MaroiacHHa YiFYH onapar 6yimapbIH aJlbIH)lbIFbIHbl Ba ja MHpac

ran)lbIFbIHbl TaC)lHr ellHp

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KecTapmm1-1jH raj)la)la KY3amT eT)llfjH h yryrnapJlaH ycTytt h yryr Tana6 eTMajalaKJlHp

(B) AMepHKa EHpnaIIIMHIII lllTarnapbIHbIH rejpH-THJapaT ruceHTJ1HjH KHMH EMHTeHT

6apaclfH)la THJapar CbIFoprncbI Ba ManHjja TaIIIKlfJlarnapbrna aHJl e)llfJlaH Ba A3ap6ajJaH

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hyryrnapbrn an)la e)lHJ1MacHHa Kepa EMHTeHTJlaH A3ap6ajJaH)la BepKH TYTYJ1MajaJar)lbip

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e)llfJlMaCHH)laH Ba ja 6amracbrna Ke~aCHHJlaH aBBaJ1KH BepKH eh)laJ1HKJ1apH A3ap6ajJaH

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Maroia 3

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yqytt YiFYH Ta)l6Hpnap K0pMaja HJa3a BepHp

2

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acrncpana ena 6HJialaKZJKP

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4

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EaKhI mahapH 1993-qy IDI neKa6p11H 14

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2

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4

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EaKhI mahapH 1993-qy IDI neKa6p11H 14

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ranaarJllIp

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IIITATJIAPbl h8KYMgTJ1

EaKhI mahapH 1993-qy IDI neKa6p11H 14

5

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(a) EMHTeHTIIH 6eJia TaMHHaTJia anaranap onapar A3ap6aJqaH BaJijyracLI HJia

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EaKhI mahapH 1993-qy IDI neKa6p11H 14

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Page 15: Agreement Between the UNITED STATES OF AMERICA and AZERBAIJAN

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5