Article 4 Expropriation

1. Capital investments of investors of one Contracting Party on the territory of the other Contracting Party may not be subject to compulsory confiscation measures, equivalent in effect to expropriation or nationalisation (hereinafter referred to as expropriation), with the exception of cases when these measures are carried out in the general interest with the observance of the procedure established in accordance with the legislation of this other Contracting Party, not having a discriminatory character and against prompt, adequate and effective compensation.

2. The compensation should match the market price of the expropriated capital investments, calculated on the date when the expropriation or impending expropriation became officially known. The compensation shall be paid without delay in freely convertible currency and be freely transferable from the territory of one of the Contracting Party to the territory of the other Contracting Party. From the moment of expropriation until the moment of payment on the compensation interest shall be payable on the sum of compensation at a commercial rate, set on a market basis, but no less that the LIBOR rate for six month dollar credits.