BETWEEN THE GOVERNMENT OF MONGOLIA
AND THE GOVERNMENT OF ROMANIA
ON THE PROMOTION AND RECIPROCAL
PROTECTION OF INVESTMENTS
The Government of Mongolia and the Government of Romania herein referred to as the "Contracting Parties",
Desiring to intensify economic cooperation to the mutual benefit of both States,
Intending to create and maintain favourable conditions for investments by investors of one Contracting Party in the territory of the other Contracting Party,
Recognizing the need to promote and protect foreign investments with the aim to foster the economic prosperity of both States,
Have agreed as follows:
For the purpose of this Agreement:
(a) natural persons who, according to the law of that Contracting Party, are considered to
be its citizens;
(b) legal entities, including companies, corporations, business associations and other
organizations, which are constituted or otherwise duly organized under the law of
that Contracting Party and have real economic activities in the territory of that Contracting Party.
Contracting Party in the territory of the other Contracting Party, in accordance with the laws and regulations of the latter, and include particularly, but not exclusively:
(a) movable and immovable property as well as any other rights in rem, such as
mortgages, hens, pledges ;
(b) shares, stocks or any other kinds of participation in companies ;
(c) claims to money or to any rights to any performance having an economic value;
(d) intellectual property rights, such as copyrights, patents, industrial designs or models,
trade or service marks, trade names, know-how and goodwill, as well as other similar
rights recognized by the laws of the Contracting Parties;
(e) business concessions of economic value necessary for conducting economic
activities, conferred by law or under contract, including concessions to search for,
cultivate, extract and exploit natural resources.
Any alteration of the form in which assets are invested or reinvested shall not affect their character as investment.
(a) with respect to Mongolia, the territory over which Mongolia has sovereignty or
(b) with respect to Romania, the territory of Romania including the territorial sea and
the economic exclusive zone over which Romania exercises, in accordance with
internal and international law, sovereignty, sovereign rights and jurisdiction.
and equitable treatment and shall enjoy full protection and security in the territory of the other Contracting Party.
to extend to the investors and investments of the other Contracting Party the advantages resulting from any existing or future customs or economic union, a free trade area or regional economic organization, to which either of the Contracting Parties is or becomes a member. Nor shall such treatment relate to any advantage which either Contracting Party accords to investors of a third state by virtue of a double taxation agreement or other agreements on a reciprocal basis regarding tax matters.
(a) returns according to Article 1, paragraph (3) of this Agreement;
(b) amounts relating to loans incurred, or other obligations undertaken by contractor the
(c) proceeds accruing form the total or partial sale, or liquidation of an investment.
2. Such compensation shall amount to the market value of the expropriated investment
immediately before the expropriation or before the impending expropriation became public knowledge and shall include interest from the date of expropriation and be freely transferable. Compensation shall be effective, adequate and be paid without undue delay.
3. Investors of one Contracting Party, whose investments in the territory of the other
Contracting Party suffered losses owing to war or armed conflict, state of emergency or other similar events shall, as regards compensation or other forms of settlement, be accorded by the latter Contracting Party treatment not less favourable than that which the latter Contracting Party accords to its own investors or to the investors of any third State. Any payment made under this Article shall be freely transferable.
Application of the Agreement
The present Agreement shall apply to all investments made after its entry into force.
Principle of subrogation
If either Contracting Party or its designated agency makes payment to one of its investors under any financial guarantee against non-commercial risks it has granted in regard of an investment in the territory of the other Contracting Party, the latter shall recognize, by virtue of the principle of subrogation, the assignment of any right or title of that investor to the first Contracting Party or its designated agency. The other Contracting Party shall be entitled to set off taxes and other public charges due and payable by the investor.
Settlement of disputes between a Contracting Party and an investor of the other Contracting Party
(a) the competent court of the Contracting Party in the territory of which the investment
has been made; or
(b) the International Centre for Settlement of Investment Disputes (ICSID) provided for
by the Convention on the Settlement of Investment Disputes between States and Nationals of the other States, opened for signature at Washington, on March 18, 1965; or
(c) an ad hoc arbitral tribunal which, unless otherwise agreed upon by the parties to the
dispute, shall be established under the arbitration rules of the United Nations Commission on International Trade Law (UNCITRAL).
Settlement of disputes between Contracting Parties
IN WITNESS THEREOF the Undersigned, being duly authorized by their respective
Government, have signed this Agreement.
DONEat Bucharest, on 6th of November 1995, in two originals, in Mongolian, Romanian and
English languages, each text being equally authentic. In case of difference of interpretation, the English text shall prevail.
FOR THE GOVERNMENT OF FOR THE GOVERNMENT OF