Law of Turkmenistan
On amendments to the Law of Turkmenistan
"On investment activity in Turkmenistan".
(Bulletin of Mejlis (Parliament) of Turkmenistan, 2015 , № 3, p. 108)
I. To amend the text of the Law of Turkmenistan “On investment activity in Turkmenistan” adopted on 19 May 1992 (Bulletin of Mejlis (Parliament) of Turkmenistan, 1992 ., № 5, p. 37; 1993 ., № 4, p. 34), as follows:
1. The name of the law should be read as follows:
«Türkmenistanda maýa goýum işi hakynda».
2. In preamble the words«Türkmenistanyň halk hojalygynda işleriň bazar ykdysadyýeti şertlerinde netijeli gitmegine» should be deleted.
3. In text the words «inwestision iş», «inwestision işiň», «inwestision işe», «inwestision işi», «inwestision işde», «inwestision proýektler», «inwestision proýektleri», «inwestision» we «inwestisiýa», «inwestisiýalar», «inwestisiýalary», «inwestirlemek», «inwestirleme», «inwestisiýalaryň», «inwestisiýalarynyň», «inwestisiýalara», «inwestisiýalaryny», «territoriýasynda», «inwestorlary», «inwestorlar», «inwestoryň», «inwestorlaryň», «inwestor», «inwestorlara», «inwestora», «sosial», «formadadygyna», «formasynda», «formasyna», «formalary», «bir formasy-da», «gymmat bahaly kagyzlar», «gymmat bahaly kagyzlary», «gymmat bahaly kagyzlara», «kommersiýa», «fondlary», «fondlaryň», «fondlar», «fondlaryny», «organlary», «organlarynyň», «organlaryna», «organlaryndan», «organlar», «organynyň», «organlaryň», «graždanlygy», «graždanlaryň», «modernizirlenýän (täzelenýän)», «normalara we kadalara», «normalaryň we kadalaryň», «normalary», «normalarynyň», «normalaryny», «normalaryň», «smeta», «kredit», «kreditleri», «zakazlary», «zakazynda», «zakazlaryny», «zakazlarydyr», «zakazy», «zakazlarynyň», «zakazynyň», «zakazyny», «kanunçylyk aktlary», «kanunçylyk aktlarynda», «kanunçylyk aktlaryna», «aktlary», «aktlaryň», «operasiýalarynyň», «dokumenti», «hemşerileri (partnýorlary)», konkurslar», «konkurs», «konkursa», «konkurslary», «proýektler», «proýektleri», «proýekti», «ekspertizadan» we «ekspertizasyndan», «ekspertiza», «betpäl bäsdeşlik (konkurensiýa)», «attestasiýadan», «lisenziýasy», «lisenzirlemegiň», «resurslarynyň», «aksiýalar», «aksiýalary», «gelen netijesini», «netije (zaklýuçeniýe)», «wznoslary», «ekspertden», «regionlar», «regionlary», «regional», «sistemasy», «kompleksleýin», «programmalaryny», «programmalary», «programmalaryň», «programmalarynyň», «programmalar», «programmany», «shemalary», «planlaşdyrylanda», «komissiýasynyň», «ýerli ýerine ýetiriji häkimiýet», «indeksasiýalaşdyrmak», «sudunyň», «sudlar», «sudlarda», «awariýalar», «summalar», «strahowaniýe etdirilip», «strahowaniýe etdirilmelidir» should be replaced by the following words correspondently «maýa goýum işi», «maýa goýum işiniň», «maýa goýum işine», «maýa goýum işini», «maýa goýum işinde», «maýa goýum taslamalary», «maýa goýum taslamalaryny», «maýa goýum», «maýa goýumlar», «maýa goýumlary», «maýa goýmak», «maýa goýma», «maýa goýumlaryň», «maýa goýumlarynyň», «maýa goýumlara», «maýa goýumlaryny», «çäginde», «maýa goýujylary», «maýa goýujylar», «maýa goýujyň», «maýa goýujylaryň», «maýa goýujy», «maýa goýujylara», «maýa goýuja», «durmuş», «görnüşindedigine», «görnüşinde», «görnüşine», «görnüşleri», «görnüşleriniň biri», «gymmatly kagyzlar», «gymmatly kagyzlary», «gymmatly kagyzlara», «täjirçilik», «gaznalary», «gaznalaryň», «gaznalar», «gaznalaryny», «edaralary», «edaralarynyň», «edaralaryna», «edaralaryndan», «edaralar», «edarasynyň», «edaralaryň», «raýatlygy», «raýatlaryň», «döwrebaplaşdyrylýan», «kadalara», «kadalaryň we düzgünleriň», «ölçegleri», «kadalarynyň», «ölçeglerini», «kadalaryň», «çenlik», «karz», «karzlary», «buýurmalary», «buýurmasynda», «buýurmalaryny», «buýurmalarydyr», «buýurmasy», «buýurmalarynyň», «buýurmasynyň», «buýurmasyny», «kadalaşdyryjy hukuk namalary», «kadalaşdyryjy hukuk namalarynda», «kadalaşdyryjy hukuk namalaryna», «namalary», «namalaryň», «amallarynyň», «resminamasy», «hyzmatdaşlary», «bäsleşikler», «bäsleşik», «bäsleşige», «bäsleşikleri», «taslamalar», «taslamalary», «taslamany», «bilermenler seljermesinden», «bilermenler seljermesi», «ynsapsyz bäsleşik», «hünär synagyndan», «ygtyýarnamasy», «ygtyýarlandyrmagyň», «serişdeleriniň», «paýnamalar», «paýnamalary», «netijenamasyny», «netijenama», «gatançlary», «bilermenden», «sebitler», «sebitleri», «sebitleýin», «ulgamy», «toplumlaýyn», «maksatnamalaryny», «maksatnamalary», «maksatnamalaryň», «maksatnamalarynyň», «maksatnamalar», «maksatnamany», «çyzgylary», «meýilnamalaşdyrylanda», «toparynyň», «ýerine ýetiriji ýerli häkimiýet», «indeksirlemek», «kazyýetiň», «kazyýetler», «kazyýetlerde», «heläkçilikler», «pullar», «ätiýaçlandyrylyp», «ätiýaçlandyrylmalydyr».
4. Part 2 of the Article 4 should be read as follows:
«2. Hususy, karz alnan we çekilen emläk hem-de intellektual gymmatlyklary goýuma goýmak hakynda kararlary kabul edýän maýa goýum işiniň subýektleri - maýa goýujylar bolup durýarlar. Maýa goýujylar goýumçylar, algydarlar, satyn alyjylar hökmünde çykyş edip, şeýle hem maýa goýum işine gatnaşýan her bir subýektiň wezipesini ýerine ýetirip bilerler.».
5. In Paragraph 1 part 2 of Article 19, in parts 1 of articles 21 and 22 correspondently the words «hojalyk», «(personal)» и «(režim)» should be deleted.
II. This Law comes into force from the date of its official publication.
President of Turkmenistan Gurbanguly Berdimuhamedov
18 August 2015
Law of Turkmenistan
Introduction of amendments and additions to the Law
"On investment activity in Turkmenistan".
(Bulletin of Mejlis (Parliament) of Turkmenistan 1993 ., № 4, p. 34)
Mejlis (Parliament) of Turkmenistan resolves:
To amend the Law of Turkmenistan “On Investment Activities in Turkmenistan” adopted by the Supreme Council of Turkmenistan on 19 May 1992 (Bulletin of Mejlis (Parliament) of Turkmenistan, No. 5, 1992, p. 37):
1. Article 2, paragraph 1, should read as follows:
"Investment activity is understood as a set of practical actions of the state, physical and legal entities on realization of investments".
2) Point 2 of the Paragraph 2, Article 2 should be read as follows:
"investments made by individuals, business associations, societies and partnerships, as well as public and religious organizations and other legal entities of Turkmenistan, regardless of their form of ownership;".
3. In point 3 paragraph 2 of Article 2, the words "local public authorities" should be replaced by "local executive authorities".
The fourth point of 2 of article 2 should read as follows:
"investments by foreign States, legal entities, natural persons and stateless persons";
5. Paragraph five of point 2 of article 2 should be read as follows:
"joint investment carried out by Turkmenistan and foreign States, legal entities, natural persons and persons without citizenship".
6. In article 4, paragraph 1, the word "citizens " should be replaced by "naturals".
7. In article 4, paragraph 3, the word "citizens" should be replaced by "physical" and the word "laws" should be replaced by "orders".
8. Article 5, paragraph 1, should read as follows:
"Relations related to investment activity in Turkmenistan shall be regulated by this Law and other legislative acts of Turkmenistan.
9. In article 6, paragraph 2, the word "citizens" shall be replaced by "physical".
10.In article 6, paragraph 3, the word "citizens" shall be replaced by "physical" and the word "them" shall be deleted from the last sentence.
11. In article 6, paragraph 6, replace the word "citizens" with the word "physical".
12. delete digit 1 from the text of article 7, in the same article replace the word "citizens" with the word "physical" in the third paragraph.
13. The second paragraph of the first article 8 should read as follows:
"to submit to the bodies authorized by the Cabinet of Ministers a declaration on the volume and source of its investments";
14. The paragraph 2, point 2, Article 11 should be read as follows:
"a system of tax exemptions provided for by the tax legislation".
15. In paragraph 8, point 2, article 11, the word "citizens" should be replaced by "natural persons". In the same paragraph delete the words "non-governmental enterprises" and "based on collective property".
16. Paragraph 3 of article 11 should be deleted.
17.The title of article 12 should read as follows: "Interaction of Turkmenistan with other States".
18. In paragraph 1 of article 12, delete the words "extrabudgetary funds for the financing of targeted programmes of the Economic Community".
19. Paragraph 3 of article 12 should be deleted.
20.The words "and shall be submitted by the Cabinet of Ministers of Turkmenistan for consideration to the Majlis of Turkmenistan" should be deleted from paragraph two of article 13.
22. In article 15, paragraph 4, the words "local public authorities" should be replaced with the words "local executive authorities".
23. In the title of article 16 and in paragraph 1 of the article, the word "depositives " should be replaced with the word "deposits".
24. In the title of article 17 and in the text of this article, replace the words "local government bodies" with the words "local executive authorities" and "local executive authorities", respectively.
25. In paragraph 1 of the point 2 of Article 19, the words "Gengshi" (Council) shall be deleted resulted this body adopted an act violating the rights of investors and participants in investment activities.
26. In paragraph 2, of point 2, of Article 19, after the phrase "within the limits of" add the word "competence" and further on the text.
27. In paragraph 1, of paragraph 2, of article 22, delete the last sentence: "The procedure for indemnifying an investor shall be defined in the said acts”.
28. In paragraph 2, of article 22, point 2, after the word "shall be reimbursed", the word "investor" should be replaced with the word "investors".
29.Paragraph 4, of article 22 should read as follows:
"Disputes concerning the non-performance or improper performance of obligations concerning investment activities between Turkmenistan and foreign States shall be settled by negotiation or in courts determined by inter-State treaties (agreements)".
ON INVESTMENT ACTIVITIES
(Bulletin of the Majlis (Parliament) of Turkmenistan, 1992, No. 5, p. 37).
(As amended and supplemented by the Laws of Turkmenistan
No. 832-KP of 12.04.1993 and No. 274-V of 18.08.2015).
This Law defines the legal, economic and social conditions of investment activity in Turkmenistan. It is aimed to ensuring equal protection of the rights, interests and property of investment activity subjects, regardless of their form of ownership.
CHAPTER I. GENERAL PROVISIONS
Article 1: Investments
Investments means all kinds of property and intellectual values invested into the objects of business and other kinds of activity resulted the profit (income) is formed or social effect is achieved.
Such values can be:
monetary funds, target bank deposits, units, shares and other securities;
movable and immovable property (buildings, structures, equipment and other tangible assets);
property rights arising from copyright, know-how, experience and other intellectual property;
rights to use land and other natural resources, as well as other property rights;
Investments in reproduction of fixed assets may take the form of capital investments.
Article 2. Investment activities
1. Investment activity means a set of practical actions of the state, individuals and legal entities on realization of investments.
2) Investment activity is carried out on the basis:
Investments made by individuals, business associations, societies and partnerships, as well as public and religious organizations and other legal entities of Turkmenistan, regardless of their form of ownership;
State investment carried out by Governmental authorities and local executive bodies from budgets, extrabudgetary funds and borrowed funds, as well as by State enterprises and institutions from their own and borrowed funds;
Investments made by foreign States, legal entities, individuals and persons without citizenship;
Joint investment by Turkmenistan and foreign States, legal entities, individuals and persons without citizenship.
Article 3. Objects of investment activity
Newly created and modernized fixed assets and current assets in all branches and spheres of economic activity, securities, target monetary contributions, scientific and technical products, intellectual values, other objects of property, as well as property rights are the objects of investment activity.
It is prohibited to invest into objects the establishment and operation of which does not meet the norms of seismic resistance, fire, explosion safety, sanitary and hygienic, environmental and urban planning requirements, as well as damages the rights and interests of citizens, legal entities and the State protected by law.
Article 4: Subjects of investment activity
1. The natural persons and legal entities of Turkmenistan and foreign States, as well as the States directly may be the Subjects (investors and participants) of investment activity.
Investors are the Subjects of investment activity who make decisions on the investment of their own, borrowed and attracted property and intellectual values. Investors may act as depositors, creditors and buyers, and may also act as any participant in the investment activity.
3. Participants in the investment activity are the natural persons and legal entities of Turkmenistan and other countries, ensured the implementation of investments as contractors or based on the investor’s commission.
Article 5: Legislationof Turkmenistan on investment activity
Relations related to the implementation of investment activity in Turkmenistan shall be regulated by this Law and other legislative acts of Turkmenistan.
Investment activity shall be regulated as follows:
Subjects of Turkmenistan in foreign States by the legislation of the State in territory of which the activity is carried out, appropriate international agreements and inter-State agreements, as well as and particular legislation of Turkmenistan;
Subjects of foreign States in Turkmenistan - by this Law and by particular legislation of Turkmenistan.
CHAPTER II. INVESTMENT ACTIVITY
Article 6. Rights of investors
1. All investors have equal rights to carry out investment activities.
Investor's use of property and intellectual values for investment in objects not prohibited by this Law and other legislation of Turkmenistan without any restrictions shall be recognized as their inalienable right and protected by law.
The investor independently determines the volumes, directions and efficiency of investments and, at its own discretion, attracts individuals and legal entities required for the implementation of investments on a contractual basis.
3. By the decision of the investor, the rights of ownership, use, disposal of investments and results of their implementation can be transferred to other individuals and legal entities in the procedure established by law. Relations between the Parties in case of rights transfer are regulated on the basis of agreements.
4. Financial resources in the form of credits, issue of securities and loans can be attracted for investment, in accordance with the procedure established by legislation.
Investor's property may be used by him as a security for his obligations. Only such property, which is owned by or belongs to the borrower on the basis of full economic management rights, is accepted as collateral, unless otherwise provided for by the legislation of Turkmenistan. In case of pledge obligations violation, the pledged property may be sold according to the procedure provided by legislation.
5. Investors have the right to own, use and dispose of objects and investment results, including reinvestments and commercial deals in Turkmenistan, in accordance with the legislation of Turkmenistan.
By the legislation of Turkmenistan it may be determined that some invested objects does not entail the acquisition of ownership rights, but does not exclude the possibility of subsequent possession, operational management or participation of the investor in profits to receiving from the operation of such objects, and for investors of other States-providing the right to export outside of Turkmenistan.
6. An investor has the right to acquire the property required from individuals or legal entities directly or through intermediaries by prices and conditions determined by an agreement between the Parties, provided there is no conflict with the legislation of Turkmenistan, without limitation in volume or nomenclature.
Article 7: Relations between subjects of investment activity
The main legal document regulating relations between subjects of investment activity is a contract (agreement).
The contracts conclusion, the choice of partners, the determination of obligations and any other terms and conditions of economic relations not conflicted with the legislation of Turkmenistan are solely the competence of the subjects of investment activity. Interference by State bodies and officials in the implementation of contractual relations between investment activity subjects is prohibited, except in cases stipulated by this Law.
Subjects of investment activity have the right to organize tenders (auctions) in purpose to attract natural persons and legal entities to the implementation of investment activity.
Article 8: Obligations of Subjects of investment activity
An investor, in the cases and in accordance with the procedure provided by the legislation of Turkmenistan should:
Submit a declaration on the volume and sources of investments made by the investor to the bodies authorized by the Cabinet of Ministers of Turkmenistan;
Obtain the required permitions and approvals of the appropriate authorities and special services for capital construction;
Obtain the conclusion of the State Experts Board of investment projects with regard to compliance with seismic, fire and explosion safety, sanitary, environmental and urban planning requirements.
2. Subjects of investment activity are obliged:
Observe norms and standards, determined by the legislation of Turkmenistan;
Prevent unfair competition and comply with antimonopoly regulation requirements;
Comply with the requirements of state bodies and officials within their competence;
Submit accounting and statistical reports in accordance with the set forth procedure.
3. Each participant of investment activity fulfilling the special types of works required the Contractor’s appropriate certification should have a license for perform such type of work. The list of such works and the procedure for their licensing are set forth by the competent authorities.
Article 9. Sources of financing of investment activity
Investment activities shall be carried out at the expense of:
own financial resources of the investor (profit, depreciation charges, monetary savings, savings of citizens, legal entities and others);
borrowed financial resources of investors (bonded loans, bank and budget credits);
borrowed financial resources of the investor (funds received from sale of shares, mutual and other contributions of citizens and legal entities);
budget investment allocations.
CHAPTER III. GOVERNMENT REGULATION AND INVESTMENT ACTIVITY MANAGEMENT
Article 10. Objectives of state regulation of investment activity
State regulation of investment activity is carried out with a view to implementing the economic, scientific, technical and social policy of Turkmenistan and should provide for preferential conditions for any investors engaged in investment activity in priority areas for the State. The list of priority sectors, in which favourable conditions are created for investors, is approved and periodically reviewed by the Cabinet of Ministers of Turkmenistan, with regional differentiation.
Article 11. Forms of State regulation of investment activity
1. State regulation of investment activity includes regulation of investment activity terms and conditions and direct management of state investments.
2. State regulation of the terms and conditions of investment activity is carried out by State bodies of Turkmenistan in accordance with the legislation as such:
the system of tax privileges stipulated by the tax legislation;
depreciation policy, including accelerated depreciation of fixed assets. At the same time, amortization benefits may be differentiated for specific sectors and sectors of the economy, elements of fixed assets and types of equipment;
providing financial assistance in the form of grants, subsidies, subventions, budget loans for the development of individual regions and industries;
through the implementation of credit policy, state norms and standards, anti-monopoly measures, privatization of state property, including construction in progress, and pricing policy;
conditions for the use of land and other natural resources, and the examination of investment projects.
Off-budget investment funds formed in accordance with the procedure set forth by legislation of Turkmenistan, as well as small enterprise support funds, can be used as economic methods of state regulation of investment activities.
The State creates the terms and conditions for activating the investment activity of individuals, economic associations, societies and partnerships, as well as public and religious organizations and other legal entities in priority directions for the country, as well as for attracting them to participate in state investment activity, including the implementation of state target complex programs, by issuing and selling shares, attracting contributions and other measures.
Article 12. Interaction of Turkmenistan with other States
Interaction of Turkmenistan with other states in investment activity is carried out in accordance with the concluded interstate agreements, by means of approximation of the economic legislation and coordination of the policy in the field of investments, development and implementation of joint state targeted scientific and technical, economic, social, environmental and other programs of common interest, as well as programs on liquidation of the consequences of natural disasters and catastrophes, creation and use of the fund of the regional development.
Turkmenistan establishes the procedure for implementing and protecting investments on its territory.
Article 13. The procedure for taking decisions on State investments
1. Decisions on state investments are taken based on forecasts of economic and social development of Turkmenistan and the schemes of development and placement of productive forces, targeted scientific and technical and comprehensive public programmes and feasibility studies determining the expediency of such investments.
2. The Projects of integrated targeted state programmes of the governmental importance are elaborated in accordance with the procedure set forth by the Cabinet of Ministers of Turkmenistan, with the participation of local executive authorities, interested State bodies and public organizations.
3. When planning state investments, the Cabinet of Ministers of Turkmenistan, with the participation of local executive authorities, ensures the correspondence to the volume of investment required to implement the targeted comprehensive programmes and the state order within the established time terms.
Allocations from the state budget are provided only to the most important construction sites of the State order and to the implementation of State programmes.
Article 14: Expert evaluation and approval of state investments in capital construction
1. State, inter-State and regional projects and targeted comprehensive programmes implemented with State investment are subject to mandatory state examination and approval in accordance with the procedure set forth by the Cabinet of Ministers of Turkmenistan.
Conclusion on the investment security of each programme or project in connection with already adopted programmes and projects should be provided by such expertise.
2. The projects, feasibility studies and technical and economic calculations for the construction of facilities, regardless of the sources of financing, are subject to mandatory state examination in terms of compliance with seismic, fire and explosion safety, sanitary and environmental, urban planning requirements.
Article 15. Procedure for placing state orders for capital construction
1. One of the forms of realization of state investments is state orders for capital construction.
2. The state order in capital construction is issued for creation of the most important production capacities and objects of nonproductive purpose of priority branches and directions with indication of term of putting into operation.
3. The state order, as a rule, is placed on a competitive basis. During the transition to market relations, the Cabinet of Ministers may place State orders, which are binding on all State enterprises and organizations involved in investment activities, taking into account the economic benefits to the enterprises and organizations. The Cabinet of Ministers approves a scale of benefits and privileges for the priority execution of State orders.
4. The approval of a State order for the construction of facilities is effected after approval by the local executive authorities in accordance with the procedure established by law.
5. Any participant in investment activity has the right to participate in competitions for State capital construction orders.
6. State orders are accepted for operation according to the procedure established by the Cabinet of Ministers of Turkmenistan.
7. Final settlements with the contractors for the objects of State order are made after the State Commission acts are approved.
Article 16. The procedure for State investment in securities, deposits, movable and immovable property and other valuables
1. The volumes of state investment in securities, deposits, movable and immovable property and other valuables are approved by the Cabinet of Ministers of Turkmenistan.
2. Investment projects in the above areas are subject to State examination according to an order set forth by the Cabinet of Ministers of Turkmenistan.
Article 17. Activities of local executive authorities in state investment realization
Local executive authorities should be engaged in investment activity in accordance with this Law and Law of Turkmenistan “On property”.
Article 18. Pricing in investment activity
The cost of products (works, services) in the process of investment activity is determined mainly by contractual prices, including the results of bids (auctions), and referred to the construction projects financed from the state budget, it is determined by estimated prices with subsequent indexation. The contractual price in construction is determined by using as recommended current estimated norms and prices with compensation for additional costs.
CHAPTER IV. RIGHTS GUARANTEES AND INVESTMENT PROTECTION
Article 19. Guarantees of rights of Subjects of investment activity
1. Turkmenistan guarantees the stability of the rights of subjects of investment activity. In the event of the adoption of legislative acts whose provisions restrict the rights of investment activity subjects, the relevant provisions of such acts may not come into force until 10 years after their publication.
2. If state bodies adopt the acts violating the rights of investors and investment activity participants, such body shall compensate by court decision the losses, including loss of profit, incurred by investment activity participants. If the State body has insufficient funds, the damages are compensated by the Cabinet of Ministers of Turkmenistan respectively.
Government bodies and their officials should not interfere in the activities of investment activity subjects, except in cases where such interference is permitted by llegislation and takes place within the competence of such bodies and officials.
No one should restrict the rights of investors in the choice of investment objects, except in the cases provided for by the legislation of Turkmenistan.
3. Investment activity is terminated or suspended by decision as:
Investors and at that investor reimburses for losses the participants.
of investment activities;
an authorized government agency.
The decision of the state body on termination or suspension of investment activity can be made for the reason:
Declaring the investor bankrupt in accordance with the procedure established by law due to insolvency;
natural disasters, accidents and other similar cases;
declaration of a state of emergency;
if during the investment activity it became clear that its continuation will lead to the violation of sanitary, ecological and other norms established by the legislation, the rights and interests of citizens, legal entities and the state protected by the law. The procedure for compensating investment activity participants in that case is determined by the law.
Article 20. Liability of investment activity participants
In case of non-compliance with contractual obligations, subjects of investment activity shall bear property and other liability provided for by the legislation and concluded contracts. Payment of fines and penalties for violation of the terms of the contracts, as well as compensation of the caused losses shall not release the guilty party from fulfillment of obligations, unless otherwise stipulated by law or the contract.
Article 21. Liability in the implementation of the state order
1. In case of non-fulfillment or improper fulfillment of the obligations to implement a state order or the legally imposed obligations, enterprises and organizations shall bear property responsibility for their obligations to the subjects of investment activity. Failed officials shall bear personal responsibility in accordance with the current legislation.
2. State bodies shall bear mutual property responsibility for non-fulfillment or improper fulfillment of obligations related to the implementation of state orders, compensating for the damage caused, including loss of profit.
3. Participants of the investment activity bear property responsibility before Turkmenistan as the investor, for the realization of state orders in accordance with the procedure provided by the legislation and the agreements concluded.
Article 22. Protection of investments
1. Turkmenistan guarantees the protection of investments regardless of form of ownership and state affiliation. Investments are protected by the law. Equatable treatment is ensured for all investors, excluding the implementation of discriminatory measures, hindered the management, use and liquidation of investments, as well the conditions and procedure for exporting the results of investments are provided.
2. Investments should not be nationalized, requisitioned free of charge or measures equal in effect should not be applied to such investments. Such measures may be applied only based on legislative acts with full compensation of losses incurred by the investor in connection to the with the termination of investment activities.
Target bank deposits, shares and other securities contributed to or acquired by investors, and payments for acquired property or rental rights are reimbursed to investors in case of withdrawal in accordance with the legislation of Turkmenistan, except for amounts that have been used or lost as a result of actions taken by the investors themselves or with their participation.
3. Disputes arising in result of investment activities should be settled in the appropriate courts.
4. Disputes regarding the non-performance or improper performance of obligations related to investment activities between Turkmenistan and foreign countries should be settled through negotiations or in courts determined by interstate agreements.
President of Turkmenistan S. Niyazov
19 May 1992.