Protocol to the Agreement between the Russian Federation and the State of Kuwait for the Promotion and Reciprocal Protection of Investments (Kuwait, November 21, 1994)

Authentic text

PROTOCOL
TO THE AGREEMENT BETWEEN THE RUSSIAN FEDERATION AND THE STATE OF KUWAIT FOR THE PROMOTION AND RECIPROCAL PROTECTION OF INVESTMENTS
(KUWAIT, NOVEMBER 21, 1994)

On signing the Agreement between the Russian Federation and the State of Kuwait for the Promotion and Reciprocal Protection of Investments, the Contracting Parties have also agreed on the following provisions:

1. With respect to Article 1, paragraph 1

The term "investment" includes investments controlled directly by investors of the Contracting Party as well as investments controlled indirectly by such investors through investors of a third state. The foregoing also applies to investments "owned" as used in Article 1, paragraph 1 of the said Agreement.

The Contracting Parties also acknowledge that the question whether control exist will depend on the factual circumstances of the particular case. To this end consideration should be given, inter alia, to whether there is:

a) a substantial interest in the investment, taking into account the extent of equity or other forms of financial interest;

b) the ability to exercise substantial influence over the management and operation of the investment; or

c) the ability to exercise substantial influence over the composition of the board of directors or over the composition of any other managing body.

2. With respect to Article 2, paragraph 9

The provisions of this paragraph shall be applicable by the Contracting Parties after the expiration of five years from the date of entry into force of the said Agreement.

Done in duplicate at Kuwait on this 21st day of November, 1994 corresponding to 18th day of Jamada II 1415 H in the Russian, Arabic and English languages, all texts being equally authoritative. In case of divergency of interpretation, the English text shall be used.

/Signatures/