Common use of Nationalization and Expropriation Clause in Contracts

Nationalization and Expropriation. 1. Investments of any Contracting Party or any natural or legal persons shall not be subject to any measures that limit the right of ownership, or the acquisitions, or management or utilization of these investments, whether permanently or temporarily, unless within the limits of prevailing laws or by a rule of the competent court. 2. Investments of either Contracting Party in the territory of the other Contracting Party or investments of any of its natural and legal persons, shall not be nationalized or expropriate, and these investments shall not be subject to measures having an effect equivalent to expropriation or nationalization, except for a public purpose and in the public interest of this state, upon payment of prompt, fair and adequate compensation and provided such measures are carried out in a non- discriminatory basis and in accordance with the law. 3. The compensation shall be calculated on the basis of the fair market value of the investment before announcing the expropriation decision immediately, or by informing the public about expropriation. This value determined according to the accepted principles on the determination of the market value, in the absence of the possibility of determining the market value, it is determined directly by the amount of compensation in accordance with the fair principles, taking into account among other things the investing capital, the depreciation of the capital that has been transferred to the outside, the depreciation value, and the goodwill and other similar things (the amount of compensation including benefits that calculated on the basis of the LIBOR prices from the date of the expropriation until the date of repayment). In the case of not reaching an agreement between the investor and the country hosting the investment, then referencing to the procedures for settlements of investment disputes in accordance with Article (6) of this agreement. If ultimately the amount of compensation has been determined, repayment would have to be immediately and allowed to be transferred to the outside.