Resolution

President of Turkmenistan

26 November 1993              No. 1603                            Ashgabat

                                                                                       070.270.040

On guarantees of foreign investment and capital protection

(Collection of Acts  of the President of Turkmenistan and Decisions of the Government of Turkmenistan, 1993, No. 11, article 1694)

In order to protect the interests and legitimate rights of foreign investors in Turkmenistan and to guarantee foreign investments and capital hereby I resolve:

1. To establish that foreign investment, property and capital of foreign investors in Turkmenistan are under state protection. Government Authorities and Public Administration are prohibited   to impose any restrictions on the right to use the property and capital of the investors unless the cases prescribed by law referred to committing illegal actions by the investors.

2. To guarantee investors and foreign workers the right to transfer freely the capital and property owned outside Turkmenistan in the order established by the legislation of Turkmenistan on currency regulation.

To establish that the foreign investors’ deposits  in banks of Turkmenistan, shares, belonging to them, securities and other means of payment cannot be subject to restrictions by Central and Commercial Banks of Turkmenistan.

3. Central and Commercial Banks of Turkmenistan should provide to foreign investors a right to maintain current and settlement accounts in banks in national currency of Turkmenistan and in foreign currency of other States. To ensure free access for foreign investors and owners of funds in banks to the domestic currency market of Turkmenistan for the purchase of the currency of Turkmenistan and foreign currency in accordance with the legislation on currency regulation.

4. The Central Bank of Turkmenistan should provide the extraordinary right to transfer funds in manats, purchased by foreign investors for hard currency, into the currency of other countries and transfer them abroad.

5. To guarantee to foreign investors the priority  right to use manat earned from sales of products and services in Turkmenistan  for purchase of goods and products, including cotton fiber, petroleum  products, yarn, wool, carpets and carpet products providing the right license-free export outside of Turkmenistan.

6. To allow the Central Bank of Turkmenistan to act as a guarantor of foreign investors’ fund protection, deposited in the banks of Turkmenistan, unless the losses from foreign exchange and commercial risks of the owners of the funds.

7. The Central Bank and commercial banks of Turkmenistan should ensure the strict compliance with legislation on deposit secrecy protection. To prosecute perpetrators of disclosure the secrecy of deposits of private persons, enterprises and organizations non-state sector, foreign firms, companies, joint stock companies and associations.

8. The Ministry of Justice of Turkmenistan and the Central Bank of Turkmenistan should be responsible for control the implementation of this resolution.

President of Turkmenistan                                     Saparmyrat Turkmenbashy