CHAPTER TWO: PROTECTION OF FOREIGN INVESTMENT

Article 7. Legal Guarantees for Foreign Investment.

1. Foreign investment shall enjoy legal protection within the territory of Mongolia as guaranteed by the Constitution, the present Law and other laws and regulations in force which are consistent with the proceeding, and as guaranteed by the International Treaties to which Mongolia is a signatory.

2. Foreign investment within the territory of Mongolia shall not be nationalized or be subject to unlawful expropriation.

3. Investments of a foreign investor may be subject to expropriation exclusively for public purposes or interests and only in accordance with due process of law, on a non-discriminatory basis, and with full compensation.

4. Unless provided otherwise in  International Treaties to which Mongolia is a signatory, the amount of such compensation shall be determined by the value of the expropriated assets at the time of expropriation or public notice of such expropriation.  Such compensation shall be made without delay.

5. Losses suffered by foreign investors due to a state of emergency or war in Mongolia shall be treated on the same basis as losses suffered by Mongolian investors.