Protection of Investments and International Investment Arbitration in Kazakhstan Considering Chinese Investments
The Republic of Kazakhstan is one of the key investment jurisdictions in Central Asia, actively attracting foreign capital, including significant Chinese investment. This is driven by its strategic geographic location, the development of transport and logistics corridors, and participation in large-scale infrastructure and energy projects. Key investment sectors include energy, infrastructure, transport and logistics, mining, industry, and digital technologies.
The legal framework for investment protection in Kazakhstan is based on the Entrepreneurial Code, international treaties, bilateral investment agreements, and a developed system of international arbitration. The state provides foreign investors with core guarantees aligned with international standards, including protection of property rights, prohibition of unlawful interference, compensation in cases of nationalization or requisition, free transfer of profits and capital, and access to judicial and arbitral protection. In general, foreign investors enjoy national treatment, subject to certain restrictions in strategic sectors of the economy.
Investment relations between Kazakhstan and China are governed by a bilateral agreement on the promotion and mutual protection of investments, updated in 2025 to align with modern standards of international investment law. The agreement establishes national treatment and most-favoured-nation treatment, the fair and equitable treatment standard, protection against unlawful expropriation, guarantees of free transfer of income and capital, and access to international investment arbitration. A key element is the ISDS mechanism (Investor-State Dispute Settlement), which allows investors to bring claims directly against the state before international arbitral tribunals.
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Kazakhstan is a party to the 1958 New York Convention and the 1965 Washington Convention (ICSID), ensuring the international recognition and enforcement of arbitral awards and enabling investment disputes to be resolved in international arbitration forums. In practice, mechanisms such as ICSID (for investor–state disputes), as well as ICC, SIAC, HKIAC, CIETAC, and the International Arbitration Centre (IAC) of the Astana International Financial Centre, are widely used for commercial and cross-border disputes. |
A particularly important role in the investment protection system is played by the Astana International Financial Centre (AIFC), which operates as a separate jurisdiction based on the principles of English common law. The AIFC Court and the International Arbitration Centre provide dispute resolution in English, with independent international judges and arbitrators, applying common law principles, thereby enhancing predictability and neutrality of proceedings.
Despite a developed legal and institutional framework for investment protection, certain regulatory risks remain, including changes in tax and currency regulations, strengthened environmental requirements, state regulation of strategic sectors, and challenges in enforcing arbitral awards. Accordingly, investors increasingly rely on comprehensive legal protection tools, including international arbitration, structuring investments through the AIFC, and contractual stabilization mechanisms.
Thus, Kazakhstan has developed a comprehensive investment protection system combining national regulation, international treaties, and a robust arbitration infrastructure. In the context of Chinese investments, international investment arbitration plays a particularly important role as a key mechanism for dispute resolution and legal certainty, making Kazakhstan an attractive jurisdiction for long-term cross-border investment.
| If your company is planning investment projects in Kazakhstan or engaging in cross-border transactions with Chinese counterparties, the REVERA team can assist with: |
- structuring foreign investments;
- drafting investment agreements;
- selecting arbitration jurisdiction and applicable law;
- supporting arbitration proceedings;
- investment protection and enforcement of arbitral awards.
Write to our lawyer to learn more details.
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