18 DE ABRIL DE 1996

636-(9)

spot transactions in the currency to be transferred. In the absence of a market for foreign exchange, the rate to be used will be the most recent rate applied to inward investments or the most recent exchange rate for conversion of currencies into special drawing rights, whichever is more farourable to the investor.

4) Notwithstanding paragraphs 1) to 3), a Contracting Party may protect the rights of creditors, or ensure compliance with laws on the issuing, trading and dealing in securities and the satisfaction of judgements in civil, administrative and criminal adjudicatory proceedings, through the equitable, non-discriminatory, and good faith application of its laws and regulations.

5) Notwithstanding paragraph 2), Contracting Parties which are states that were constituent parts of the former Union of Soviet Socialist Republics may provide in agreements concluded between them that transfers of payments shall be made in the currencies of such Contracting Parties, provided that such agreements do not treat investments in their areas of. investors of other Contracting Parties less favourably than either investments of investors of the Contracting Parties which have entered into such agreements or investments of investors of any third state.

6) Notwithstading subparagraph 1), b), a Contracting Party may restrict the transfer of a return in kind in circumstances where the Contracting Party is permitted under article 29, 2), a), or the GATT and related instruments to restrict or prohibit the exportation or the sale for export of the product constituting the return in kind; provided that a Contracting Party shall permit transfers of returns in kind to be effected as authorized or specified in an investment agreement, investment authorization, or other written agreement between the Contracting Party and either an investor of another Contracting Party or its investment.

Article 15 Subrogation

• 1) If a Contracting Party or its designated agency ( hereinafter referred to as the «indemnifying party») makes a payment under an indemnity or guarantee given in respect of an investment of an investor (hereinafter referred to as the «party indemnified*) in the area of another Contracting Party (hereinafter referred to as the «host party»), the host party shall recognize:

d) The assignment to the indemnifying party of all the rights and claims in respect of such investment; and

b) The right of the indemnifying party to exercise all such rights and enforce such claims by virtue of subrogation.

2) The indemnifying party shall be entitled in all circumstances to:

a) The same treatment in respect of the rights and claims acquired by it by virtue of the assignment referred to in paragraph 1); and

b) The same payments due pursuant to those rights and claims;

as the Party indemnified was entitled to receive by virtue of this Treaty in respect of the investment concerned.

3) In any proceeding under article 26, a Contracting Party shall not assert as a defence, counterclaim, right of set-off or for any other reason, that indemnification or other compensation for all or part of the alleged damages has been received or will be received pursuant to an insurance or guarantee contract.

Article 16 • Relation to other agreements

Where two or more Contracting Parties have entered into a prior international agreement, or enter into a subsequent international agreement, whose terms in either case concern the subject matter of part m or v of this Treaty:

1) Nothing in part m or v of this Treaty shall be construed to derogate from any provision of such terms of the other agreement or from any right to dispute resolution with respect thereto under that agreement; and

2) Nothing in such terms of the other agreement shall be construed to derogate from any provision of part m or v of this Treaty or from any right to dispute resolution with respect thereto under this Treaty;

where any such provision is more favourable to the investor or investment.

Article 17

Non-application of part m in certain circumstances

Each Contracting Party reserves the right to deny the advantages of this part to:

d) A legal entity if citizens or nationals of a third state own or control such entity and if that entity has no substantial business activities in the area of the Contracting Party in which it is organized; or

b) An investment, if the denying Contracting Party establishes that such investment is an investment of an investor of a third state with or as to which the denying Contracting Party:

a) Does not maintain a diplomatic relationship; or

b) Adopts or maintains measures that:

i) Prohibit transactions with investors of

that state; or it) Would be violated or circumvented if the benefits of this part were accorded to investors of that state or to their investments.

PART TV Miscellaneous provisions

Article 18

Sovereignty over energy resources

1) The Contracting Parties recognize state sovereignty and sovereign rights over energy resources. They raffirm