1. A Contracting Party may deny the benefits of this Agreement to an investor of the other Contracting Party that is an enterprise of the other Contracting Party and to its investments if the enterprise is owned or controlled by an investor of a non- Contracting Party and the denying Contracting Party:
a)
does not maintain diplomatic relations with the non-Contracting Party; or
b)
adopts or maintains measures with respect to the non-Contracting Party that prohibit transactions with the enterprise or that would be violated or circumvented if the benefits of this Agreement were accorded to the enterprise or to its investments.
2. A Contracting Party may deny the benefits of this Agreement to an investor of the other Contracting Party that is an enterprise of the other Contracting Party and to its investments if the enterprise is owned or controlled by an investor of a non- Contracting Party or of the denying Contracting Party and the enterprise has no substantial business activities in the Area of the other Contracting Party.
3. For the purposes of this Article, an enterprise is:
a)
“owned” by an investor if more than fifty percent of the equity interest in it is beneficially owned by the investor; and
b)
“controlled” by an investor if the investor has the power to name a majority of its directors or otherwise to legally direct its actions.