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Agreement on partnership and cooperation establishing a partnership
between the European Communities and their Member States, of one part,
and the Russian Federation, of the other part - Protocol 1 on the establishment
of a coal and steel contact group - Protocol 2 on mutual administrative
assistance for the correct application of customs legislation - Final
Act - Exchanges of letters - Minutes of signing
Official Journal L 327 , 28/11/1997 p. 0003 - 0069
Text:
AGREEMENT ON PARTNERSHIP AND COOPERATION establishing a partnership between
the European Communities and their Member States, of one part, and the
Russian Federation, of the other part
The KINGDOM OF BELGIUM,
the KINGDOM OF DENMARK,
the FEDERAL REPUBLIC OF GERMANY,
the HELLENIC REPUBLIC,
the KINGDOM OF SPAIN,
the FRENCH REPUBLIC,
IRELAND,
the ITALIAN REPUBLIC,
the GRAND DUCHY OF LUXEMBOURG,
the KINGDOM OF THE NETHERLANDS,
the PORTUGUESE REPUBLIC,
the UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
Contracting Parties to the Treaty establishing the European Community,
the Treaty establishing the European Coal and Steel Community, and the
Treaty establishing the European Atomic Energy Community,
hereinafter referred to as 'Member States`, and
the EUROPEAN COMMUNITY, the EUROPEAN COAL AND STEEL COMMUNITY and the
EUROPEAN ATOMIC ENERGY COMMUNITY,
hereinafter referred to as 'the Community`,
of the one part, and
the RUSSIAN FEDERATION,
hereinafter referred to as 'Russia`,
of the other part,
CONSIDERING the importance of the historical links existing between the
Community, its Member States and Russia and the common values that they
share,
RECOGNIZING that the Community and Russia wish to strengthen these links
and to establish partnership and cooperation which would deepen and widen
the relations established between them in the past in particular by the
Agreement between the European Economic Community and the European Atomic
Energy Community and the Union of Soviet Socialist Republics on Trade
and Commercial and Economic Cooperation, signed on 18 December 1989, hereinafter
referred to as the '1989 Agreement`,
CONSIDERING the commitment of the Community and its Member States acting
in the framework of the European Union by the Treaty on European Union
of 7 February 1992 and of Russia to strengthening the political and economic
freedoms which constitute the very basis of the partnership,
CONSIDERING the commitment of the Parties to promote international peace
and security as well as the peaceful settlement of disputes and to cooperate
to this end in the framework of the United Nations and the Conference
on Security and Cooperation in Europe and other fora,
CONSIDERING the firm commitment of the Community and its Member States
and of Russia to the full implementation of all principles and provisions
contained in the Final Act of the Conference on Security and Cooperation
in Europe (CSCE), the concluding documents of the Madrid and Vienna follow-up
meetings, the document of the CSCE Bonn Conference on Economic Cooperation,
the Charter of Paris for a New Europe and the CSCE Helsinki document 1992,
'the challenges of change`,
CONFIRMING the attachment of the Community and its Member States and of
Russia to the aims and principles set out in the European Energy Charter
of 17 December 1991 and in the declaration of the Lucerne Conference of
April 1993,
CONVINCED of the paramount importance of the rule of law and respect for
human rights, particularly those of minorities, the establishment of a
multi-party system with free and democratic elections and economic liberalization
aimed at setting up a market economy,
BELIEVING that the full implementation of partnership presupposes the
continuation and accomplishment of Russia's political and economic reforms,
DESIROUS of encouraging the process of regional cooperation in the areas
covered by this Agreement between the countries of the former USSR in
order to promote the prosperity and stability of the region,
DESIROUS of establishing and developing regular political dialogue on
bilateral and international issues of mutual interest,
TAKING ACCOUNT of the Community's willingness to provide technical assistance,
as appropriate, for the implementation of economic reform in Russia and
for the development of economic cooperation,
BEARING IN MIND the utility of the Agreement in favouring a gradual rapprochement
between Russia and a wider area of cooperation in Europe and neighbouring
regions and Russia's progressive integration into the open international
trading system,
CONSIDERING the commitment of the Parties to liberalize trade, based on
the principles contained in the General Agreement on Tariffs and Trade
hereinafter referred to as 'GATT`, as amended by the Uruguay Round trade
negotiations, and taking into account the establishment of the World Trade
Organization, hereinafter referred to as 'WTO`,
RECOGNIZING that Russia is no longer a state trading country, that it
is now a country with an economy in transition and that continued progress
towards a market economy will be fostered by cooperation between the Parties
in the forms set out in this Agreement,
CONSCIOUS of the need to improve conditions affecting business and investment,
and conditions in areas such as establishment of companies, labour, provision
of services and capital movements,
CONVINCED that this Agreement will create a new climate for economic relations
between the Parties and in particular for the development of trade and
investment, which are essential to economic restructuring and technological
modernization,
DESIROUS of establishing close cooperation in the area of environmental
protection taking into account the interdependence existing between the
Parties in this field,
BEARING in mind the intention of the Parties to develop their cooperation
in the space field in view of the complementary of their activities in
this area,
DESIROUS of promoting cultural cooperation and improving the flow of information,
HAVE AGREED AS FOLLOWS:Article 1
A Partnership is hereby established between the Community and its Member
States, of the one part, and Russia, of the other part. The objectives
of this Partnership are:
- to provide an appropriate framework for the political dialogue between
the Parties allowing the development of close relations between them in
this field,
- to promote trade and investment and harmonious economic relations between
the Parties based on the principles of market economy and so to foster
sustainable development in the Parties,
- to strengthen political and economic freedoms,
- to support Russian efforts to consolidate its democracy and to develop
its economy and to complete the transition into a market economy,
- to provide a basis for economic, social, financial and cultural cooperation
founded on the principles of mutual advantage, mutual responsibility and
mutual support,
- to promote activities of joint interest,
- to provide an appropriate framework for the gradual integration between
Russia and a wider area of cooperation in Europe,
- to create the necessary conditions for the future establishment of a
free trade area between the Community and Russia covering substantially
all trade in goods between them, as well as conditions for bringing about
freedom of establishment of companies, of cross-border trade in services
and of capital movements.
TITLE I GENERAL PRINCIPLES
Article 2
Respect for democratic principles and human rights as defined in particular
in the Helsinki Final Act and the Charter of Paris for a new Europe, underpins
the internal and external policies of the Parties and constitutes an essential
element of partnership and of this Agreement.
Article 3
The Parties undertake to consider development of the relevant titles of
this Agreement, in particular Title III and Article 53, as circumstances
allow, with a view to the establishment of a free trade area between them.
The Cooperation Council may make recommendations on such development to
the Parties. Such development shall only be put into effect by virtue
of an agreement between the Parties in accordance with their respective
procedures. The Parties shall examine together in the year 1998 whether
circumstances allow the beginning of negotiations on the establishment
of a free trade area.
Article 4
The Parties undertake to examine together, by mutual consent, amendments
which it may be appropriate to make to any part of the Agreement in view
of changes in circumstances, and in particular of the situation arising
from Russia's accession to the GATT/WTO. The first examination shall take
place three years after the entry into force of the Agreement or when
Russia accedes to the GATT/WTO, whichever is earlier.
Article 5
1. The most-favoured-nation treatment granted by Russia under this Agreement
shall not apply during a transitional period expiring five years after
the entry into force of this Agreement in relation to advantages defined
in Annex 1 granted by Russia to other countries of the former USSR. This
period may be extended where appropriate for specific sectors by mutual
consent between the Parties.
2. In the case of the most-favoured-nation treatment granted under Title
III the transitional period referred to in paragraph 1 shall expire three
years after the entry into force of the Agreement or when Russia accedes
to the GATT/WTO, whichever is earlier.
TITLE II POLITICAL DIALOGUE
Article 6
A regular political dialogue shall be established between the Parties
which they intend to develop and intensify. It shall accompany and consolidate
the rapprochement between the European Union and Russia, support the political
and economic changes underway in Russia and contribute to the establishment
of new forms of cooperation. The political dialogue:
- shall strengthen the links between Russia and the European Union. The
economic convergence achieved through this Agreement will lead to more
intense political relations,
- shall bring about an increasing convergence of positions on international
issues of mutual concern thus increasing security and stability,
- shall foresee that the Parties endeavour to cooperate on matters pertaining
to the observance of the principles of democracy and human rights, and
hold consultations, if necessary, on matters related to their due implementation.
Article 7
1. Meetings shall take place in principle twice a year between the President
of the Council of the European Union and the President of the Commission
of the European Communities on one side and the President of Russia on
the other.
2. At ministerial level, political dialogue shall take place within the
Cooperation Council established in Article 90 and on other occasions,
including with the European Union troika, by mutual agreement.
Article 8
Other procedures and mechanisms for political dialogue shall be set up
by the Parties and in particular in the following forms:
- biannual meetings at senior official level between the European Union
troika on the one hand, and officials of Russia on the other
- taking full advantage of diplomatic channels,
- any other means, including the possibility of expert meetings, which
would contribute to consolidating and developing this dialogue.
Article 9
Political dialogue at parliamentary level shall take place within the
framework of the Parliamentary Cooperation Committee established in Article
95.
TITLE III TRADE IN GOODS
Article 10
1. The Parties shall accord to one another the general most-favoured-nation
treatment described in Article I, paragraph 1 of the GATT.
2. The provisions of paragraph 1 shall not apply to:
(a) advantages accorded to adjacent countries in order to facilitate frontier
traffic;
(b) advantages granted with the aim of creating a customs union or a free-trade
area or pursuant to the creation of such a union or area; the terms 'customs
union` and 'free trade area` shall have the same meaning as those described
in paragraph 8 of Article XXIV of the GATT or created through the procedure
indicated in paragraph 10 of the same GATT article;
(c) advantages granted to particular countries in accordance with the
GATT and with other international arrangements in favour of developing
countries.
Article 11
1. The products of the territory of one Party imported into the territory
of the other Party shall not be subject, directly or indirectly, to internal
taxes or other internal charges of any kind in excess of those applied,
directly or indirectly, to like domestic products.
2. Moreover, these products shall be accorded treatment no less favourable
than that accorded to like products of national origin in respect of all
laws, regulations and requirements affecting their internal sale, offering
for sale, purchase, transportation, distribution or use. The provision
of this paragraph shall not prevent the application of differential internal
transportation charges which are based exclusively on the economic operation
of the means of transport and not on the nationality of the product.
3. Article III, paragraphs 8, 9 and 10 of the GATT shall be applicable
mutatis mutandis between the Parties.
Article 12
1. The Parties agree that the principle of freedom of transit is an essential
condition of attaining the objectives of this Agreement.
In this connection each Party shall provide for freedom of transit through
its territory of goods originating in the customs territory or destined
for the customs territory of the other Party.
2. The rules described in Article V, paragraphs 2, 3, 4 and 5 of the GATT
shall be applicable between the Parties.
Article 13
The following Articles of the GATT shall be applicable mutatis mutandis
between the Parties:
1. Article VII, paragraphs 1, 2, 3, 4 (a), (b) and (d), 5;
2. Article VIII;
3. Article IX;
4. Article X.
Article 14
Without prejudice to the rights and obligations stemming from international
conventions on the temporary admission of goods which bind both Parties,
each Party shall furthermore grant the other Party exemption from import
charges and duties on goods admitted temporarily, in the instances and
according to the procedures stipulated by any other international convention
on this matter binding upon it, in conformity with its legislation. Such
legislation shall be applied on a most-favoured-nation basis and thus
subject to the exceptions listed in Article 10 (2) of this Agreement.
Account shall be taken of the conditions under which the obligations stemming
from such a convention have been accepted by the Party in question.
Article 15
1. Goods originating in Russia shall be imported into the Community free
of quantitative restrictions without prejudice to the provisions of Articles
17, 20 and 21 of this Agreement and to the provisions of Articles 77,
81, 244, 249 and 280 of the Act of Accession of Spain and Portugal to
the Community.
2. Goods originating in the Community shall be imported into Russia free
of quantitative restrictions without prejudice to the provisions of Articles
17, 20 and 21 and Annex 2 to this Agreement.
Article 16
Until Russia accedes to the GATT/WTO, the Parties shall hold consultations
in the Cooperation Committee on their import tariff policies, including
changes in tariff protection. In particular, such consultations shall
be offered prior to the increase of tariff protection.
Article 17
1. Where any product is being imported into the territory of one of the
Parties in such increased quantities and under such conditions as to cause
or threaten to cause substantial injury to domestic producers of like
or direct competitive products, the Community or Russia, whichever is
concerned, may take appropriate measures in accordance with the following
procedures and conditions.
2. Before taking any measures, or in cases to which paragraph 4 applies
as soon as possible thereafter, the Community or Russia, as the case may
be, shall supply the Cooperation Committee with all relevant information
with a view to seeking a solution acceptable to both Parties. The Parties
shall commence consultations promptly within the Cooperation Committee.
3. If, as a result of the consultations, the Parties do not reach agreement
within 30 days of referral to the Cooperation Committee on actions to
avoid the situation, the Party which requested consultations shall be
free to restrict imports of the products concerned or to adapt other appropriate
measures to the extent and for such time as is necessary to prevent or
remedy the injury.
4. In critical circumstances where delay would cause damage difficult
to repair, the Parties may take the measures before the consultations,
on the condition that consultations shall be offered immediately after
taking such action.
5. In the selection of measures pursuant to this Article, the Parties
shall give priority to those which cause least disturbance to the achievement
of the aims of this Agreement.
6. Where a safeguard measure is taken by one Party in accordance with
the provisions of this Article, the other Party shall be free to deviate
from its obligations under this Title towards the first Party in respect
of substantially equivalent trade.
Such action shall not be taken before consultations have been offered
by such other Party nor if agreement has been reached within 45 days following
the date these consultations were offered.
7. The right of deviation from the obligations referred to in paragraph
6 shall not be exercised for the first three years that a safeguard measure
is in effect, provided that the safeguard measure has been taken as a
result of an absolute increase in imports, for the maximum period of four
years, and in conformity with the provisions of this Agreement.
Article 18
Nothing in this Title, and in Article 17 in particular, shall prejudice
or affect in any way the taking, by either Party, of anti-dumping or countervailing
measures in accordance with Article VI of the GATT, the Agreement on implementation
of Article VI of the GATT, the Agreement on interpretation and application
of Articles VI, XVI and XXIII of the GATT or related internal legislation.
In respect of anti-dumping or subsidy investigations, each Party agrees
to examine submissions by the other Party and to inform the interested
parties concerned of the essential facts and considerations on the basis
of which a final decision is to be made. Before definitive anti-dumping
and countervailing duties are imposed, the Parties shall do their utmost
to bring about a constructive solution to the problem.
Article 19
The Agreement shall not preclude prohibitions or restrictions on imports,
exports or goods in transit justified on grounds of public morality, public
policy or public security; the protection on health and life of humans,
animals or plants; the protection of natural resources; the protection
of national treasures of artistic, historic or archaeological value or
the protection of intellectual, industrial and commercial property or
rules relating to gold and silver. Such prohibitions or restrictions shall
not, however, constitute a means of arbitrary discrimination or a disguised
restriction on trade between the Parties.
Article 20
This Title shall not affect the provisions of the Agreement between the
European Economic Community and the Russian Federation on trade in textile
products initialled on 12 June 1993 and applied with retroactive effect
as from 1 January 1993. Furthermore, Article 15 of this Agreement shall
not apply to trade in textile products falling within Chapters 50 to 63
of the combined nomenclature.
Article 21
1. Trade in products covered by the Treaty establishing the European Coal
and Steel Community shall be governed by:
- the provisions of this Title, with the exception of Article 15, and
- upon its entry into force, by the provisions of the agreement on quantitative
arrangements concerning exchanges of ECSC steel products.
2. The establishment of a contact group on coal and steel matters is governed
by Protocol 1 annexed to this Agreement.
Article 22 Trade in nuclear materials
1. Trade in nuclear materials shall be covered by:
- the provisions of this Agreement with the exception of Articles 15 and
17 (1) to (5) and (7),
- the provisions of Articles 6, 7, 14 and 15 (1), (2), and (3), first
sentence, and (4) and (5) of the 1989 Agreement,
- the attached exchange of letters.
2. Notwithstanding the provisions of paragraph 1 of this Article, the
Parties agree to take all necessary steps to arrive at an arrangement
covering trade in nuclear materials by 1 January 1997.
3. Until such an arrangement is reached, the provisions of this Article
will continue to apply.
4. Steps will be taken to conclude an agreement regarding nuclear safeguards,
physical protection and administrative cooperation in transfers of nuclear
materials. Until such an agreement is in force, the respective legislation
and international non-proliferation obligations of the Parties will be
applicable as regards the transfer of nuclear materials.
5. For the purpose of the application of the regime provided for in paragraph
1:
- the reference in Articles 6 and 15 (5) of the 1989 Agreement to 'this
Agreement` shall be read as meaning the regime established by paragraph
1 of this Article,
- the reference in Article 17 (6) of this Agreement to 'this Article`
shall be read as meaning Article 15 of the 1989 Agreement,
- the reference in Articles 6, 7, 14 and 15 of the 1989 Agreement to the
'Contracting Parties` shall be read as meaning the Parties to this Agreement,
- the reference to the 'Joint Committee` in Article 15 of the 1989 Agreement
shall mean the Cooperation Committee provided for pursuant to Article
92 of this Agreement.
TITLE IV PROVISIONS ON BUSINESS AND INVESTMENT
CHAPTER I LABOUR CONDITIONS
Article 23
1. Subject to the laws, conditions and procedures applicable in each Member
State, the Community and its Member States shall ensure that the treatment
accorded to Russian nationals, legally employed in the territory of a
Member State shall be free from any discrimination based on nationality,
as regards working conditions, remuneration or dismissal, as compared
to its own nationals.
2. Russia shall, subject to the conditions and modalities applicable in
Russia, accord the treatment referred to in paragraph 1 to nationals of
a Member State who are legally employed in its territory.
Article 24 Coordination of social security
The Parties shall conclude agreements in order:
1. to adopt, subject to the conditions and modalities applicable in each
Member State, the provisions necessary for the coordination of social
security systems for workers of Russian nationality, legally employed
in the territory of a Member State and where applicable for the members
of their family, legally resident there. These provisions will in particular
ensure that:
- all periods of insurance, employment or residence completed by such
workers in the various Member States shall be added together for the purpose
of pensions in respect of old age, invalidity and death and for the purpose
of medical care for such workers and where applicable for such family
members,
- any pensions in respect of old age, death, industrial accident or occupational
disease, or of invalidity resulting therefrom, with the exception of the
special non-contributory benefits, shall be freely transferable at the
rate applied by virtue of the law of the debtor Member State or States,
- the workers in question shall where applicable receive family allowances
for the abovementioned members of their family.
2. to adopt, subject to the conditions and modalities applicable in Russia,
the provisions necessary to accord to workers who are nationals of a Member
State and legally employed in Russia, and to members of their families
legally resident there, treatment similar to that specified in the second
and third indents of paragraph 1.
Article 25
The measures to be taken in accordance with Article 24 of this Agreement
shall not affect any rights or obligations arising from bilateral agreements
linking the Member States and Russia where those agreements provide for
more favourable treatment of nationals of the Member States or of Russia.
Article 26
The Cooperation Council shall examine which improvements can be made in
working conditions for businessmen consistent with the international commitments
of the Parties, including those set out in the document of the CSCE Bonn
Conference.
Article 27
The Cooperation Council shall make recommendations for the implementation
of Articles 23 and 26 of this Agreement.
CHAPTER II CONDITIONS AFFECTING THE ESTABLISHMENT AND
OPERATION OF COMPANIES
Article 28
1. The Community and its Member States of the one part and Russia of the
other part, shall grant to each other treatment no less favourable than
that accorded to any third country, with regard to conditions affecting
the establishment of companies in their territories and this in conformity
with the legislation and regulations applicable in each Party.
2. Without prejudice to the reservations listed in Annex 3, the Community
and its Member States shall grant to Community subsidiaries of Russian
companies a treatment no less favourable than that granted to other Community
companies or to Community companies which are subsidiaries of any third
country companies whichever is the better, in respect of their operation
and this in conformity with their legislation and regulations.
3. Without prejudice to the reservations listed in Annex 4, Russia shall
grant to Russian subsidiaries of Community companies a treatment no less
favourable than that granted to other Russian companies or to Russian
companies which are subsidiaries of any third country companies whichever
is the better, in respect of their operation and this in conformity with
its legislation and regulations.
4. The Community and its Member States of the one part and Russia of the
other part shall grant to branches of Russian and Community companies
respectively a treatment no less favourable than that accorded to branches
of companies of any third country, in respect of their operation and this
in conformity with their legislation and regulations.
5. The provisions of paragraphs 2 and 3 cannot be used so as to circumvent
a Party's legislation and regulations applicable to access to specific
sectors or activities by subsidiaries of companies of the other Party
established in the territory of such first Party.
The treatment referred to in paragraphs 2 and 3 shall benefit companies
established in the Community and Russia respectively at the date of entry
into force of this Agreement and companies established after that date
once they are established.
Article 29
The provisions of Article 28 of this Agreement together with the following
provisions shall apply in respect of banking and insurance services referred
to in Annex 6.
1. In respect of banking services referred to in Annex 6, Part B, the
nature of the treatment accorded by Russia pursuant to Article 28 (1),
with regard to establishment by means of the setting up of subsidiaries
only and pursuant to Article 28 (3), is set out in Annex 7, Part A.
In respect of insurance services referred to in Annex 6, Part A (1) and
(2), the nature of the treatment accorded by Russia pursuant to Article
28 (1) is set out in Annex 7, Part B.
2. Notwithstanding any other provisions of this Agreement, a Party shall
not be prevented from taking measures for prudential reasons, including
for the protection of investors, depositors, policy holders or persons
to whom a fiduciary duty is owed by a financial service supplier, or to
ensure the integrity and stability of the financial system. Such measures
shall not be used as a means of avoiding the Party's obligations under
the Agreement.
Nothing in the Agreement shall be construed to require a Party to disclose
information relating to the affairs and accounts of individual customers
or any confidential or proprietary information in the possession of public
entities.
3. Without prejudice to the provisions of Part A (1) (d) and (e) of Annex
7, the Community and the Member States of the one part and Russia of the
other part shall not adopt any new regulations or measures which would
introduce or worsen discrimination as compared to the situation existing
on the date of the signature of the Agreement as regards conditions affecting
the establishment of the other Party's companies in their respective territories
in comparison to their own companies.
The parties agree that the terms 'worsen discrimination` include the aggravation
of discriminatory conditions or their extension or reintroduction after
the current period of application.
4. For the purposes of this Agreement, as regards banking activities a
company shall be regarded as a Russian subsidiary of a Community company
when more than fifty percent (50 %) of its share capital is held by the
Community company.
Article 30
For the purpose of this Agreement:
(a) 'establishment` shall mean the right of Community or Russian companies
as referred to in paragraph (h) of this Article to take up economic activities
by means of the setting up of subsidiaries and branches in Russia or in
the Community respectively.
In respect of financial services mentioned in Article 29, 'establishment`
shall mean the right of Community or Russian companies as referred to
in paragraph (h) of this Article to take up economic activities by means
of the setting up of subsidiaries and branches in Russia or in the Community
respectively after receiving a licence from the competent authorities
in conformity with the legislation and regulations applicable in each
Party;
(b) 'subsidiary` of a company shall mean a company which is controlled
by the first company;
(c) 'economic activities` shall mean activities of an industrial, commercial
or professional character, including financial services;
(d) 'branch` of a company shall mean a place of business not having legal
personality which has the appearance of permanency, such as the extension
of a parent body, has a management and is materially equipped to negotiate
business with third parties so that the latter, although knowing that
there will if necessary be a legal link with the parent body, the head
office of which is abroad, do not have to deal directly with such parent
body but may transact business at the place of business constituting the
extension;
(e) 'Community subsidiary` or 'Russian subsidiary` respectively shall
mean a 'Community company` or a 'Russian company` respectively, as hereafter
defined, which is also a subsidiary of a 'Russian company` or a 'Community
company` respectively;
(f) a national of a Member State or of Russia respectively shall mean
a natural person who is a national of one of the Member States or of Russia
respectively in accordance with their respective legislation;
(g) 'operation` shall mean the pursuit of economic activities;
In respect of financial services mentioned in Article 29, 'operation`
shall mean the pursuit of all the economic activities authorized by the
licence granted to the company by the competent authorities in conformity
with the laws and regulations applicable in each Party;
(h) a 'Community company` or a 'Russian company` respectively shall mean
a company set up in accordance with the laws of a Member State or of Russia
respectively and having its registered office or central administration,
or principal place of business in the territory of the Community or Russia
respectively. However, should the company, set up in accordance with the
laws of a Member State or Russia respectively, have only its registered
office in the territory of the Community or Russia respectively, the company
shall be considered a Community or Russian company respectively if its
operations possess a real and continuous link with the economy of one
of the Member States or Russia respectively.
With regard to international maritime transport, shall also be beneficiaires
of the provisions of this chapter and Chapter III, shipping companies
established outside the Community or Russia and controlled by nationals
of a Member State or of Russia respectively, if their vessels are registered
in that Member State or in Russia in accordance with their respective
legislation.
For the purposes of this provision, international maritime transport shall
be considered to include intermodal transport operations involving a sea
leg without prejudice to applicable nationality restrictions concerning
the carriage of goods and passengers by other transport modes;
(i) For the purpose of Article 29 and Annex 7, with regard to banking
services referred to in Annex 6, Part B, 'Russian subsidiary` or 'Community
subsidiary` as defined in paragraph (e), shall refer to such a subsidiary
which is a bank in accordance with the laws of Russia or a Member State
respectively.
For the purpose of Article 29 and Annex 7, with regard to banking services
referred to in Annex 6, Part B, 'Community company` or 'Russian company`
as defined in paragraph (h), shall refer to such a company which is a
bank in accordance with the laws of a Member State or Russia respectively.
Article 31
Notwithstanding Article 100, the provisions of this Title shall not prejudice
the application by each Party of any measure necessary to prevent the
circumvention, through the provisions of this Agreement, of its measures
concerning third country access to its market.
Article 32
1. Notwithstanding the provisions of Chapter I of this Title, a Community
company and a Russian company established in the territory of Russia or
the Community respectively shall be entitled to employ, or have employed
by one of its subsidiaries, branches or joint ventures, in accordance
with the legislation in force in the host country of establishment, in
the territory of Russia and the Community respectively, employees who
are nationals of Member States and Russia respectively, provided that
such employees are key personnel as defined in paragraph 2 of this Article,
and that they are employed exclusively by companies, subsidiaries, branches
or joint ventures. The residence and work permits of such employees shall
only cover the period of such employment.
2. Key personnel of the abovementioned companies herein referred to as
'organizations` are 'intra-corporate transferees` as defined in paragraph
(c) in the following categories, provided that the organization is a legal
person and that the persons concerned have been employed by it or have
been partners in it (other than as majority shareholders), for at least
the year immediately preceding such movement:
(a) persons working in a senior position with an organization, who primarily
direct the management of the establishment (branch, subsidiary or joint
venture), receiving general supervision or direction principally from
the board of directors or stockholders of the business or their equivalent,
including:
- directing the establishment or a department or subdivision of the establishment,
- supervising and controlling the work of other supervisory, professional
or managerial employees,
- having the authority personally to engage and dismiss or recommend engaging,
dismissing or other personnel actions;
(b) persons working within an organization who possess uncommon knowledge
essential to the establishment's service, research equipment, techniques
or management. The assessment of such knowledge may reflect, apart from
knowledge specific to the establishment, a high level of qualification
referring to a type of work or trade requiring specific technical knowledge,
including membership of an accredited profession;
(c) an 'intra-corporate transferee` is defined as a natural person working
within an organization in the territory of a Party, and being temporarily
transferred in the context of pursuit of economic activities in the territory
of the other Party; the organization concerned must have its principal
place of business in the territory of a Party and the transfer must be
to an establishment of that organization, effectively pursuing like economic
activities in the territory of the other Party.
Article 33
The Parties recognize the importance of granting each other national treatment
with regard to the establishment and, where not so foreseen herein, operation
of each other's companies in their territories and agree to consider the
possibility of movement towards this end on a mutually satisfactory basis,
and in the light of any recommendations by the Cooperation Council.
Article 34
1. The Parties shall use their best endeavours to avoid taking any measures
or actions which render the conditions for the establishment and operation
of each other's companies more restrictive than the situation existing
on the day preceding the date of signature of the Agreement.
2. By the end of the third year after signature of the Agreement at the
latest, and thereafter at annual intervals the Parties shall examine within
the Cooperation Council:
- measures introduced by either Party since the signature of the Agreement
which affect the establishment or operation of companies of one Party
in the territory of the other Party, and which are the subject of commitments
assumed in Article 28, and
- whether it is possible for the Parties to assume:
- the obligation not to take any measures or actions which may render
the conditions for the establishment and operation of each other's companies
more restrictive than the situation existing at the time of such examination,
where not already foreseen herein, or
- other obligations affecting their freedom of action
in areas agreed between the Parties in respect of the commitments assumed
in Article 28.
If after such examination one Party is of the view that measures introduced
by the other Party since the signature of the Agreement result in a situation
which is significantly more restrictive in respect of establishment or
operation of companies of the first Party in the territory of the other
Party as compared with the situation existing at the date of signature
of the Agreement, such Party may request the other Party to enter into
consultations. In such case the provisions of Part A of Annex 8 shall
apply.
3. In furtherance of the aims of this Article, measures shall be taken
as indicated in Part B of Annex 8.
4. The provisions of this Article are without prejudice to those of Article
51. The situations covered by such Article 51 shall be solely governed
by its provisions to the exclusion of any other.
Article 35
1. Article 28 shall not apply to air transport, inland waterways transport
and maritime transport.
2. However, in respect of activities, as indicated below, undertaken by
shipping agencies for the provision of services to international maritime
transport, including intermodal transport operations involving a sea-leg,
each Party shall permit the companies of the other Party to have a commercial
presence in its territory in the form of subsidiaries or branches, under
conditions of establishment and operation no less favourable than those
accorded to its own companies or to subsidiaries or branches of companies
of any third country, whichever are the better, and this in conformity
with the legislation and regulations applicable in each Party.
3. Such activities include:
(a) marketing and sales of maritime transport and related services through
direct contact with customers, from quotation to invoicing;
(b) purchase and resale of any transport and related services, including
transport services by any inland mode, necessary for the supply of an
intermodal service;
(c) preparation of documentation concerning transport documents, customs
documents, or other documents related to the origin and character of the
goods transported;
(d) provision of business information by any means, including computerized
information systems and electronic data interchange (subject to any non-discriminatory
restrictions concerning telecommunications);
(e) setting up of any business arrangement with other shipping agencies;
(f) acting on behalf of the companies, inter alia in organizing the call
of the vessel or taking over cargoes when required.
CHAPTER III CROSS-BORDER SUPPLY OF SERVICES
Article 36
For the sectors listed in Annex 5 to this Agreement, the Parties shall
grant each other treatment no less favourable than that accorded to any
third country with regard to the conditions affecting the cross-border
supply of services, by Community or Russian companies into the territory
of Russia or the Community respectively, pursuant to the legislation and
regulations applicable in each Party.
Article 37
Subject to the provisions of Article 48 of this Agreement, the Parties
shall permit for the sectors list in Annex 5 to this Agreement the temporary
movement of natural persons, who are representatives of a Community or
a Russian company and are seeking temporary entry for the purpose of negotiating
for the sales of cross-border services or entering into agreements to
sell cross-border services for that company, where those representatives
will not be engaged in making direct sales to the general public or in
supplying services themselves.
Article 38
1. For the sectors listed in Annex 5, each Party may regulate the conditions
of cross-border supply of services into its territory. In so far as these
regulations are of general application they shall be administered in a
reasonable, objective and impartial manner.
2. Paragraph 1 is without prejudice to the provisions of Articles 36 and
50.
3. By the end of the third year after signature of the Agreement and the
latest, the Parties shall examine within the Cooperation Council:
- measures introduced by either Party since the signature of the Agreement
which affect the cross-border supply of services covered by Article 36,
and
- whether it is possible for the Parties to assume:
- the obligation not to take any measures or actions which may render
the conditions for the cross-border supply of services covered by Article
36 more restrictive than the situation existing at the time of such examination,
or
- other obligations affecting their freedom of action
in areas agreed between the Parties in respect of the commitments assumed
in Article 36.
If after such examination one Party is of the view that measures introduced
by the other Party since the signature of the Agreement result in a situation
which is significantly more restrictive in respect of cross-border supply
of services covered by Article 36 as compared with the situation existing
at the date of signature of the Agreement, such first Party may request
the other Party to enter into consultations. In such case the provisions
of Part A of Annex 8 shall apply.
4. In furtherance of the aims of this Article, measures shall be taken
as indicated in Part B of Annex 8.
5. The provisions of this Article are without prejudice to those of Article
51. The situations covered by such Article 51 shall be solely governed
by its provisions to the exclusion of any other.
Article 39
1. With regard to maritime transport, the Parties undertake to apply effectively
the principle of unrestricted access to the international market and traffic
on a commercial basis.
(a) The above provision does not prejudice the rights and obligations
arising under the United Nations Convention on a code of conduct for liner
conferences, as applicable to the Parties to this Agreement. Non-conference
lines shall be free to operate in competition with a conference as long
as they adhere to the principle of fair competition on a commercial basis.
(b) The Parties affirm their commitment to a freely competitive environment
as being an essential feature of the dry and liquid bulk trade.
2. In applying the principles of paragraph 1, the Parties shall:
(a) not apply, in their mutual trade, as from entry into force of this
Agreement, any cargo sharing provisions of bilateral agreements between
any Member State and the former USSR;
(b) not introduce cargo sharing arrangements in future bilateral agreements
with third countries concerning dry and liquid bulk and liner trade. However,
this does not exclude the possibility of such arrangements concerning
liner cargo in those exceptional circumstances where liner shipping companies
from one or other Party to this Agreement would not otherwise have an
effective opportunity to ply for trade to and from the third country concerned;
(c) abolish, upon entry into force of this Agreement, all unilateral measures,
administrative, technical and other obstacles which could constitute a
disguised restriction or have discriminatory effects on the free supply
of services in international maritime transport.
Each Party shall grant, inter alia, a treatment no less favourable than
that accorded to a Party's own vessels, for vessels used for the transport
of goods, passengers or both, and flying the flag of the other Party,
with respect to access to ports open to foreign vessels, the use of infrastructure
and auxiliary maritime services of those ports, as well as related fees
and charges, customs facilities and the assignment of berths and facilities
for loading and unloading.
3. The Parties agree that, following the entry into force of this Agreement
and not later than 31 December 1996, they will conduct negotiations on
the stage-by-stage opening of the inland waterways of each Party to the
nationals and shipping companies of the other Party, in respect of the
freedom to provide international sea-river services.
Article 40
For the purpose of establishing favourable conditions for rail transport
between the Parties, it is agreed that both Parties will, in the framework
of this Agreement and through appropriate bilateral and multilateral mechanisms,
promote:
- the facilitation of customs and other border clearance procedures for
freight and for rolling stock,
- cooperation in the creation of suitable rolling stock meeting the requirements
of international traffic,
- the approximation of regulations and procedures which govern international
transport,
- the safeguarding and development of international passenger traffic
between the Member States and Russia.
Article 41
Cooperation shall ensure fair, balanced and competitive conditions for
the space launching and transportation market based on sound economic
factors and, in particular, steps will be taken to promote the negotiation
and implementation of multilateral rules regarding international trade
in space launching and transportation services.
During the transnational period to the year 2000, conditions for the supply
of space launch services shall be agreed upon.
Article 42
The Parties shall endeavour to provide each other every assistance possible
as regards measures promoting cross-border trade in mobile satellite communications
on their respective territories, in conformity with their respective legislation,
practices and conditions. In 1996, the Parties will meet to consider the
possibilities of granting to each other most-favoured-nation treatment
for mobile satellite services.
Article 43
With a view to assuring a coordinated development of transport between
the Parties, adapted to their commercial needs, the Parties may, after
the entry into force of this Agreement, conclude specific Agreements regarding
the conditions of mutual market access and of provision of services in
the transport sector, to the extent that these conditions are not already
addressed by this Agreement. Such Agreements may apply to more than one
or to a single mode of transport.
CHAPTER IV GENERAL PROVISIONS
Article 44
For the purposes of Chapters II, III and of Title V, no account shall
be taken of treatment accorded by the Community, its Member States or
Russia pursuant to commitments entered into in economic integration agreements.
Article 45
Companies which are controlled and exclusively owned by Community companies
and Russian companies jointly shall also be beneficiaries of the provisions
of Chapters II and III of this Title and those of Title V.
Article 46
1. The provisions of this Title shall be applied subject to limitations
justified on grounds of public policy, public security or public health.
2. They shall not apply to activities which in the territory of either
Party are connected, even occasionally, with the exercise of official
authority.
Article 47
The Cooperation Council shall make recommendations for the further liberalization
of trade in services, taking into account the development of the services
sectors in the Parties and the other international commitments entered
into by the Parties, in particular in the light of the final results of
the negotiations of the General Agreement on Trade in Services, hereinafter
referred to as 'GATS`.
Article 48
For the purpose of this Title, nothing in the Agreement shall prevent
the Parties from applying their laws and regulations regarding entry and
stay, work, labour conditions and establishment of natural persons and
supply of services, provided that, in so doing, they do not apply them
in a manner as to nullify or impair the benefits accruing to any Party
under the terms of a specific provision of the Agreement. The above provision
does not prejudice the application of Article 46.
Article 49
1. The most-favoured-nation treatment granted in accordance with the provisions
of this Title or of Title V shall not apply to the tax advantages which
the Parties are providing or will provide in the future on the basis of
agreements to avoid double taxation, or other tax arrangements.
2. Nothing in this Title or in Title V shall be construed to prevent the
adoption or enforcement by the Parties of any measure aimed at preventing
the avoidance or evasion of taxes pursuant to the tax provisions of agreements
to avoid double taxation and other tax arrangements, or domestic fiscal
legislation.
3. Nothing in this Title or in Title V shall be construed to prevent Member
States or Russia from distinguishing, in the application of the relevant
provisions of their fiscal legislation, between taxpayers who are not
in identical situations, in particular as regards their place of residence.
Article 50
Without prejudice to Articles 32 and 37, no provision of Chapters II,
III and IV hereof shall be interpreted as giving the right to:
- nationals of the Member States or of Russia respectively to enter, or
stay in, the territory of Russia or the Community respectively in any
capacity whatsoever, and in particular as a shareholder or partner in
a company or manager or employed thereof or supplier or recipient of services,
- Community subsidiaries or branches of Russian companies to employ or
have employed in the territory of the Community nationals of Russia,
- Russian subsidiaries or branches of Community companies to employ or
have employed in the territory of Russia nationals of the Member States,
- Russian companies or Community subsidiaries or branches of Russian companies
to supply workers who are Russian nationals to act for and under the control
of other persons by temporary employment contracts,
- Community companies or Russian subsidiaries or branches of Community
companies to supply workers who are nationals of the Member States to
act for and under the control of other persons by temporary employment
contracts.
Article 51
1. Treatment granted by either Party to the other hereunder shall, has
from the day one month prior to the date of entry into force of the relevant
obligations of the GATS, in respect of sectors or measures covered by
the GATS, in no case be more favourable than that accorded by such first
Party under the provisions of the GATS, and this, in respect of each service
sector, sub-sector and mode of supply.
2. Without prejudice to the automatic nature of the provisions of paragraph
1, the Party which has assumed obligations under the GATS shall inform
the other of the appropriate provisions and the adaptations resulting
therefrom for this Agreement.
3. Within one month of receipt from the Party, which has assumed obligations
under the GATS, of the information referred to in paragraph 2, the other
Party may notify the first Party of its intention to make adjustments
to its obligations under this Title, and make those adjustments as follows:
- where a service sector, sub-sector or mode of supply of a service has
been excluded from the Agreement, its scope reduced or made subject to
the fulfilment of conditions pursuant to paragraph 1, the identical sector,
sub-sector or mode of supply may be excluded or its scope reduced in the
same way or made subject to the fulfilment of identical or similar conditions.
4. These adjustments made by the second Party should lead to the re-establishment
of a balance of obligations between the Parties.
5. In the case that a Party considers that the adjustments made under
paragraph 3 have not led to the re-establishment of the balance of obligations
between the Parties, such Party may request the other Party, to enter
into consultations within 30 days in order to find a satisfactory solution
by means of any other appropriate adjustment of its obligations under
this Title.
6. If within 30 days of the opening of such consultations no satisfactory
solution has been found, the procedures of Article 101 will be applicable
at the request of either Party.
TITLE V PAYMENTS AND CAPITAL
Article 52
1. The Parties undertake to authorize, in freely convertible currency,
any current payments between residents of the Community and of Russia
connected with the movement of goods, services or persons made in accordance
with the provisions of the present Agreement.
2. The free movement of capital between residents of the Community and
of Russia in the form of direct investment made in companies formed in
accordance with the laws of the host country and investments made in accordance
with the provisions of Chapter II of Title IV, and the transfer abroad
of this investment, including any compensation payments arising from measures
such as expropriation, nationalization or measures of equivalent effect,
and of any profit stemming therefrom shall be ensured.
3. The provisions of Part 2 shall not prevent Russia from applying restrictions
on outward direct investment by Russian residents. Five years after the
entry into force of this Agreement the Parties agree to consult over the
maintenance of these restrictions, taking into account all the relevant
monetary, fiscal and financial considerations.
4. Transfers in respect of capital movements covered under paragraph 2
shall be made on the same exchange rate conditions as those relating to
current transactions.
5. Without prejudice to paragraphs 6 and 7, after a transitional period
of five years as from entry into force of this Agreement, the Parties
shall not introduce any new restrictions on the movement of capital and
current payments connected therewith between resident of the Community
and Russia and shall not make the existing arrangements more restrictive.
However, the introduction of restrictions during the transitional period
referred to in the first sentence of this paragraph shall not affect the
rights and obligations of the Parties under paragraphs 2, 3, 4 and 9 of
this Article.
6. After the prohibition in paragraph 5 has come into effect and without
prejudice to paragraphs 1 and 2, where, in exceptional circumstances,
movements of capital between the Community and Russia cause, or threaten
to cause, serious difficulties for the operation of exchange rate policy
or monetary policy in the Community or Russia, the Community and Russia,
respectively, may take safeguard measures with regard to movements of
capital between the Community and Russia for a period not exceeding six
months if such measures are strictly necessary.
7. With reference to the provisions of this Article, until a full convertibility
of the Russian currency within the meaning of Article VIII of the Articles
of Agreement of the International Monetary Fund (IMF) is introduced, Russia
may apply exchange restrictions connected with the granting or taking
up of short and medium-term financial credits to the extent that such
restrictions are imposed on Russia for the granting of such credits and
are permitted according to Russia's status under the IMF.
Russia shall apply these restrictions in a non-discriminatory manner.
They shall be applied in such a manner as to cause the least possible
disruption to this Agreement. Russia shall inform the Cooperation Council
promptly of the introduction of such measures and of any changes therein.
8. The Parties shall consult each other with a view to facilitating the
movement of capital between the Community and Russia in order to promote
the objectives of the present Agreement. The Parties shall particularly
endeavour to further liberalize movements of capital related to portfolio
investment and commercial credits, and movements of capital related to
financial loans and credits granted by Community residents to Russian
residents. The Cooperation Council shall make appropriate recommendations
within the first five years after entry into force of this Agreement.
9. The Parties shall accord to one another most-favoured-nation treatment
in respect of freedom of current payments and capital movements and in
respect of methods of payment.
TITLE VI COMPETITION; INTELLECTUAL, INDUSTRIAL AND COMMERCIAL
PROPERTY PROTECTION; LEGISLATIVE COOPERATION
Article 53 Competition
1. The Parties agree to work to remedy or remove through the application
of their competition laws or otherwise, restrictions on competition by
enterprises or caused by State intervention in so far as they may affect
trade between the Community and Russia.
2. In order to attain the objectives mentioned in paragraph 1:
2.1. The Parties shall ensure that they have and enforce laws addressing
restrictions on competition by enterprises within their jurisdiction.
2.2. The Parties shall refrain from granting export aids favouring certain
undertakings or the production of products other than primary products.
The Parties also declare their readiness, as from the third year from
the date of entry into force of this Agreement, to establish for other
aids which distort or threaten to distort competition in so far as they
affect trade between the Community and Russia, strict disciplines, including
the outright prohibition of certain aids. These categories of aids and
the disciplines applicable to each shall be defined jointly within a period
of three years after entry into force of this Agreement.
Upon request by one Party, the other Party shall provide information on
its aid schemes or in particular individual cases of State aid.
2.3. During a transitional period expiring five years after the entry
into force of the Agreement, Russia may take measures inconsistent with
paragraph 2.2, second sentence, provided that these measures are introduced
and applied in the circumstances referred to in Annex 9.
2.4. In the case of State monopolies of a commercial character, the Parties
declare their readiness, as from the third year from the date of entry
into force of this Agreement, to ensure that there is no discrimination
between nationals and companies of the Parties regarding the conditions
under which goods are procured or marketed.
In the case of public undertakings or undertakings to which Member States
or Russia grant exclusive rights, the Parties declare their readiness,
as from the third year from the date of entry into force of this Agreement,
to ensure that there is neither enacted nor maintained any measure distorting
trade between the Community and Russia to an extent contrary to the Parties'
respective interests. This provision shall not obstruct the performance,
in law or fact, of the particular tasks assigned to such undertakings.
2.5. The period defined in paragraphs 2.2 and 2.4 may be extended by agreement
of the Parties.
3. Consultations may take place within the Cooperation Committee at the
request of the Community or Russia on the restrictions or distortions
of competition referred to in paragraphs 1 and 2 and on the enforcement
of their competition rules, subject to limitations imposed by laws regarding
disclosure of information, confidentiality and business secrecy. Consultations
may also comprise questions on the interpretation of paragraphs 1 and
2.
4. The Party with experience in applying competition rules shall give
full consideration to providing the other Party, upon request and within
available resources, technical assistance for the development and implementation
of competition rules.
5. The above provisions in no way affect a Party's rights to apply adequate
measures, notably those referred to in Article 18, in order to address
distortions of trade.
Article 54 Intellectual, industrial and commercial property protection
1. Pursuant to the provisions of this Article and Annex 10, the Parties
confirm the importance they attach to ensure adequate and effective protection
and enforcement of intellectual, industrial and commercial property rights.
2. The Parties confirm the importance they attach to the obligations arising
from the following multilateral conventions:
- Paris Convention for the protection of industrial property (Stockholm
Act, 1967 and amended in 1979),
- Madrid Agreement concerning the international registration of marks
(Stockholm Act, 1967, and amended in 1979),
- Nice Agreement concerning the international classification of goods
and services for the purposes of the registration of marks (Geneva, 1977,
and amended in 1979),
- Budapest Treaty on the international recognition of the deposit of microorganisms
for the purposes of patent procedure (1977, modified in 1980),
- Patent Cooperation Treaty (Washington 1970, amended and modified in
1979 and 1984),
- Protocol relating to the Madrid Agreement concerning the international
registration of marks (Madrid, 1989).
3. The implementation of the provisions of this Article and Annex 10 shall
be regularly reviewed by the Parties in accordance with Article 90. If
problems in the area of intellectual, industrial and commercial property
affecting trading conditions were to occur, urgent consultations shall
be undertaken, at the request of either Party, with a view to reaching
mutually satisfactory solutions.
Article 55 Legislative cooperation
1. The Parties recognize that an important condition for strengthening
the economic links between Russia and the Community is the approximation
of legislation. Russia shall endeavour to ensure that its legislation
will be gradually made compatible with that of the Community.
2. The approximation of laws shall extend to the following areas in particular:
company law, banking law, company accounts and taxes, protection of workers
at the workplace, financial services, rules on competition, public procurement,
protection of health and life of humans, animals and plants, the environment,
consumer protection, indirect taxation, customs law, technical rules and
standards, nuclear laws and regulations, transport.
TITLE VII ECONOMIC COOPERATION
Article 56
1. The Community and Russia shall foster economic cooperation of wide
scope in order to contribute to the expansion of their respective economies,
to the creation of a supportive international economic environment and
to the integration between Russia and a wider area of cooperation in Europe.
Such cooperation shall strengthen and develop economic links to the benefit
of both Parties.
2. Policies and other measures of the Parties related to this Title shall
in particular be designed to bring about economic and social reforms and
restructuring in Russia and shall be guided by the requirements of sustainability
and harmonious social development; they shall also fully incorporate environmental
considerations.
3. The cooperation shall, inter alia, cover:
- development of their respective industries and transport,
- exploration of new sources of supply and of new markets,
- encouragement of technological and scientific progress,
- encouragement of a stable social and human resources development and
of local employment development,
- promotion of the regional cooperation with the aim of its harmonious
and sustainable development.
4. The Parties consider it essential that, alongside with establishing
a relationship of partnership and cooperation with each other, they maintain
and develop cooperation with other European States and with the other
countries of the former USSR with a view to a harmonious development of
the region and shall make every effort to encourage this process.
5. As far as applicable economic and other forms of cooperation provided
for in this Agreement may be supported by the Community on the basis of
the relevant Council Regulations on technical assistance to the countries
of the former USSR, taking into account the priorities agreed upon by
the Parties. Support may also be provided through such other relevant
Community instruments as may be available.
Special attention shall be devoted by the Parties to measures capable
of fostering cooperation with the other countries of the former USSR.
6. The provisions of this Title shall not affect the enforcement of the
Parties' competition rules and of the specific competition provisions
of this Agreement applicable to undertakings.
Article 57 Industrial cooperation
1. Cooperation shall aim at promoting the following in particular:
- the development of business links between economic operators, including
small and medium-size enterprises,
- the improvement of management on enterprise level,
- the process of privatization in the context of economic restructuring,
and the strengthening of the private sector,
- efforts in both public and private sector, to restructure and modernize
the industry, during the transition period leading towards a market economy
and under conditions ensuring environment protection and sustainable development,
- the conversion of defence industries,
- the development of appropriate market-based commercial rules and practices
as well as transfer of know-how.
2. Industrial cooperation initiatives shall take into account priorities
determined by the Community and by Russia. The initiatives should seek
in particular to establish a suitable framework for undertakings, to improve
management know-how and to promote transparency as regards markets and
conditions for undertakings.
Article 58 Investment promotion and protection
1. Bearing in mind the respective powers and competences of the Community
and the Member States, cooperation shall aim to establish a favourable
climate for investment, both domestic and foreign, especially through
better conditions for investment protection, the transfer of capital and
the exchange of information on investment opportunities.
2. The aims of this cooperation shall be in particular:
- the conclusion, where appropriate, between the Member States and Russia
of agreements for the promotion and protection of investment,
- the conclusion, where appropriate, between the Member States and Russia
of agreements to avoid double taxation,
- to exchange information on investment opportunities in the form of inter
alia trade fairs, exhibitions, trade weeks and other events,
- to exchange information on laws, regulations and administrative practices
in the field of investment.
Article 59 Public procurement
The Parties shall cooperate to develop conditions for open and competitive
award of public procurement contracts in particular through calls for
tenders.
Article 60 Standards and conformity assessment; consumer protection
1. Within the limits of their competence, and in accordance with their
legislation the Parties shall take measures with a view to reducing the
differences which exist between the Parties in the fields of metrology,
standardization and certification by encouraging the use of internationally
agreed instruments in those fields.
The Parties shall closely cooperate in the abovementioned areas with the
relevant European and other international organizations.
The Parties shall, in particular, encourage practical interaction of their
respective organizations, with the aim of starting to negotiate mutual
recognition agreements in the field of conformity assessment activities.
2. The Parties shall enter into close cooperation with a view to achieving
compatibility between their systems of consumer protection.
This cooperation shall be aimed in particular at establishment of permanent
systems of mutual information on dangerous products, the improvement of
information provided to consumers especially on prices, characteristics
of products and services offered, the development of exchanges between
the consumer interest representatives, and increasing the compatibility
of consumer protection policies.
Article 61 Mining and raw materials
1. The Parties shall cooperate with a view to fostering the development
of the sectors of mining and raw materials. Special attention shall be
paid to cooperation in the sector of non-ferrous metals.
2. The cooperation shall focus in particular on the following areas:
- exchange of information on all matters of interest to the Parties concerning
the mining and raw materials sectors, including trade matters,
- the adoption and implementation of environmental legislation,
- training.
3. Such cooperation shall be regularly reviewed by the Parties in a special
committee or body to be set up in accordance with the provisions of Article
93.
4. This Article is without prejudice to Articles dealing more specifically
with raw materials, in particular Articles 21, 65 and 66.
Article 62 Science and technology
1. The Parties shall promote bilateral cooperation in civil scientific
research and technological development (RTD) on the basis of mutual benefit
and, taking into account the availability of resources, adequate access
to their respective programmes and subject to appropriate levels of effective
protection of intellectual, industrial and commercial property rights
(IPR).
2. Science and technology cooperation shall cover:
- the exchange of scientific and technical information,
- joint RTD activities,
- training activities and mobility programmes for scientists, researchers
and technicians engaged in RTD in both sides.
Where such cooperation takes the form of activities involving education
and/or training, it should be carried out in accordance with the provisions
of Article 63.
In carrying out such cooperation activities, special attention shall be
devoted to the redeployment of scientists, engineers, researchers and
technicians who are or have been engaged in research on/and production
of weapons of mass destruction.
3. Such cooperation shall be implemented according to specific arrangements
to be negotiated and concluded in accordance with the procedures adopted
by each Party, and which shall set out, inter alia, appropriate IPR provisions.
Article 63 Education and training
1. The Parties shall cooperate with the aim of raising the level of general
education and professional qualifications, both in the public and private
sectors.
2. The cooperation shall focus in particular on the following areas:
- updating higher education and training systems in Russia,
- the training of public and private sector executives and senior civil
servants in priority areas to be determined,
- cooperation between universities, cooperation between universities and
firms,
- mobility for teachers, graduates, young scientists and researchers,
administrators and young people,
- promoting teaching in the field of European Studies within the appropriate
institutions,
- teaching languages of the Community and of Russia,
- post-graduate training of conference interpreters,
- training of journalists,
- exchange of methods of training and promotion of use of modern training
programmes and technical facilities,
- development of distant education and new training technologies,
- training of trainers.
3. The participation of one Party in the respective programmes in the
field of education and training of the other Party could be considered
in accordance with their respective procedures and, where appropriate,
institutional frameworks and plans of cooperation could then be established
building on participation of Russia in the Community's Tempus programme.
Article 64 Agriculture and the agro-industrial sector
Cooperation shall aim at the modernization, restructuring and privatization
of agriculture and the agro-industrial sector in Russia in conditions
which ensure that the environment is respected. This cooperation shall
be through, inter alia, developing private farms and distribution channels,
methods of storage, marketing and management, modernizing the rural infrastructure
and improvement of agricultural land-use planning, improving productivity,
quality and efficiency, and the transfer of technology and know-how. The
Parties shall aim at achieving compatibility between their sanitary and
phytosanitary standards.
Article 65 Energy
1. Cooperation shall take place within the principles of the market economy
and the European Energy Charter, against a background of the progressive
integration of the energy markets in Europe.
2. The cooperation shall include among others the followings areas:
- improvement of the quality and security of energy supply, in an economic
and environmentally sound manner,
- formulation of energy policy,
- improvement in management and regulation of the energy sector in line
with a market economy,
- the introduction of a range of institutional, legal, fiscal and other
conditions necessary to encourage increased energy trade and investment,
- promotion of energy saving and energy efficiency,
- modernization of energy infrastructure including interconnection of
gas supply and electricity networks,
- the environmental impact of energy production, supply and consumption,
in order to prevent or minimize the environmental damage resulting from
these activities,
- improvement of energy technologies in supply and end use across the
range of energy types,
- management and technical training in the energy sector.
Article 66 Nuclear sector
Bearing in mind the respective powers and competences of the Community
and its Member States, civil cooperation in the nuclear sector shall take
place, inter alia, through the implementation of two agreements on thermonuclear
fusion and on nuclear safety to be agreed upon between the Parties.
Article 67 Space
Without prejudice to Article 41, the Parties shall promote long term cooperation
as appropriate in the areas of civil space research, development and commercial
application. They shall pay particular attention to initiatives making
on a mutual beneficial basis full use of the complementarity of their
respective activities.
Article 68 Construction
The Parties shall cooperate in the field of construction industry, particularly
in the areas covered by Articles 55, 57, 60, 62, 63 and 77 of this Agreement.
This cooperation shall, inter alia, aim at modernizing and restructuring
the construction sector in Russia in line with the principles of a market
economy and duly taking into account related health, safety and environmental
aspects.
Article 69 Environment
1. Bearing in mind the European Energy Charter and the Declaration of
the Lucerne Conference of 1993, the Parties shall develop and strengthen
their cooperation on environment and human health.
2. Cooperation shall aim at combating the deterioration of the environment
and in particular:
- effective monitoring of pollution levels and assessment of environment;
system of information on the state of the environment,
- combating local, regional and transboundary air and water pollution,
- ecological restoration,
- sustainable, efficient and environmentally effective production and
use of energy; safety of industrial plants,
- classification and safe handling of chemicals,
- water quality,
- waste reduction, recycling and safe disposal, implementation of the
Basle Convention,
- the environmental impact of agriculture, soil erosion, and chemical
pollution,
- the protection of forests,
- the conservation of biodiversity, protected areas and sustainable use
and management of biological resources,
- land-use planning, including construction and urban planning,
- use of economic and fiscal instruments,
- global climate change,
- environmental education and awareness,
- implementation of the Espoo Convention on Environmental Impact Assessment
in a transboundary context.
3. Cooperation shall take place particularly through:
- disaster planning and other emergency situations,
- exchange of information and experts, including information and experts
dealing with the transfer of clean technologies and the safe and environmentally
sound use of biotechnologies,
- joint research activities,
- improvement of laws towards Community standards,
- cooperation at regional level, including cooperation within the framework
of the European Environment Agency, established by the Community and at
international level,
- development of strategies, particularly with regard to global and climatic
issues and also in view of achieving sustainable development,
- environmental impact studies.
Article 70 Transport
The Parties shall develop and strengthen their cooperation in the field
of transport.
This cooperation shall, inter alia, aim at restructuring and modernizing
transport systems and networks in Russia and developing and ensuring,
where appropriate, compatibility of transportation systems in the context
of achieving a more global transportation system.
The cooperation shall include, inter alia:
- the modernizing of management and operations of road transport, railways,
ports and airports,
- modernization and development of railways, waterways, road, port, airport
and air navigation infrastructure including the modernization of major
routes of common interest and the trans-European links for the above modes,
- promotion and development of multi-modal transport,
- the promotion of joint research and development programmes,
- preparation of the legislative and institutional framework for policy
development and implementation including privatization of the transport
sector.
Article 71 Postal services and telecommunications
1. The Parties shall expand and strengthen cooperation in this area with
the aim of gradual integration at the technical level of their respective
telecommunications and postal networks. To this end they shall initiate
notably the following actions:
- exchange information on telecommunications and postal services and TV
and broadcasting policies,
- exchange technical and other information, conduct training and advisory
operations,
- carry out transfer of technology and know-how,
- have the appropriate bodies from both Parties elaborate and carry out
joint projects,
- promote new communication facilities first of all for the needs of commercial
and public institutions,
- promote European technical standards, systems of certification and regulatory
approaches,
- cooperate in securing the communication in critical circumstances, consult
each other on elaboration of guidelines for operator cooperation in conditions
of catastrophes, etc.
2. These activities shall focus, inter alia, on the following priority
areas:
- development and modernization of an integrated telecommunications sector
in Russia in the framework of market reforms and creation of an appropriate
regulatory basis,
- modernization of Russia's telecommunications network and its integration
at the technical level into European and world networks,
- cooperation in development of systems of information exchange and data
transmission between organizations of the Community and Russia,
- integration at the technical level of trans-European telecommunication
networks,
- modernization of Russia's postal and broadcasting services, including
legal and regulatory aspects,
- the management of telecommunications, postal, TV and broadcasting services
in the changing economic environments of both Parties, including inter
alia, organizational structures, strategy and planning, tariff policy
and purchasing principles.
Article 72 Financial services
The Parties shall cooperate with the aim of establishing and developing
a suitable framework for the banking, insurance and other financial services
sector in Russia adapted to the needs of a market economy.
The cooperation shall focus on:
- developing accounting standards which are suitable for a free market
economy and which are compatible with the standards adopted by Member
States,
- restructuring of the banking, insurance and financial system,
- improvement of monitoring and regulation of the banking, insurance and
financial services sector,
- developing compatible auditing systems,
- exchange of information on the respective laws in force or under preparation,
- modernizing the infrastructure of commercial and private banks.
Article 73 Regional development
The Parties shall strengthen cooperation between them on regional development
and land-use planning.
They shall encourage exchange of information by national, regional and
local authorities on regional and land-use planning policy and on methods
of formulation of regional policies with special emphasis on the development
of disadvantaged areas.
They shall also encourage direct contacts between the respective regions
and public organizations responsible for regional development planning
with the aim, inter alia, to exchange methods and ways of fostering regional
development.
Article 74 Social cooperation
1. With regard to health and safety, the Parties shall develop cooperation
between them with the aim of improving the level of protection of the
health and safety of workers.
The cooperation shall include notably:
- education and training on health and safety issues with specific attention
to high risk sectors of activity,
- development and promotion of preventive measures to combat work related
diseases and other work related ailments,
- prevention of major accident hazards and the management of toxic chemicals,
- research to develop the knowledge base in relation to working environment
and the health and safety of workers.
2. With regard to employment, the cooperation shall include notably technical
assistance relating to:
- optimization of the labour market,
- modernization of the job-finding and consulting services,
- planning and management of the restructuring programmes,
- encouragement of local employment development,
- exchange of information on the programmes of flexible employment, including
those stimulating self-employment and promoting entrepreneurship.
3. The Parties shall pay special attention to cooperation in the sphere
of social protection which, inter alia, shall include cooperation in planning
and implementing social protection reforms in Russia.
These reforms shall aim to develop in Russia methods of protection intrinsic
to market economies and shall comprise all directions of social security
activities.
The cooperation shall also include technical assistance to the development
of social insurance institutions with the aim of promoting gradual transition
to a system consisting of a combination of contributory and social assistance
forms of protection, as well as respective non-governmental organizations
providing social services.
Article 75 Tourism
The Parties shall increase and develop cooperation between them, which
shall include:
- facilitating the tourist trade,
- cooperation between official tourism bodies,
- increasing the flow of information,
- transferring know-how,
- studying the opportunities for joint operations.
Article 76 Small and medium-sized enterprises
1. The Parties shall aim to develop and strengthen small and medium-sized
enterprises (SMEs) and promote cooperation between SMEs of the Community
and Russia.
2. The Parties shall encourage the exchange of information and know-how,
inter alia, in areas such as:
- legal, administrative, technical, tax, financial and other conditions
necessary for setting up and expansion of SMEs and for cross-border cooperation,
- the provision of the specialized services required by SMEs, like management
and marketing training, accounting, quality control and creation and strengthening
of agencies providing such services,
- establishment of continuous and stable links between the Community and
Russian operators in order to improve the flow of information to SMEs
and promoting cross-border cooperation, inter alia, through access to
and operation of Business Cooperation Network and Euro-Info-Correspondence
Centres provided the necessary conditions are met for any of these networks.
The Parties shall closely cooperate with a view to ensuring that the necessary
conditions for access to the networks are met.
Article 77 Communication, informatics and information infrastructure
1. The Parties shall support the development of modern methods of information
handling, including the media. They shall take appropriate steps to stimulate
the effective mutual exchange of information. Priority shall be given
to programmes aimed at providing the general public with basic information
about the Community and professional, inter alia, business circles with
specialized information.
2. The Parties shall make the necessary efforts to expand and strengthen
cooperation in order to establish the appropriate information infrastructure.
To this end they shall initiate notably the following actions:
- the exchange of information on policies for the establishment of information
infrastructures including regulatory policies,
- exploration of the possibility for joint projects on research and development
in information and communication technologies, and on the establishment
of an information infrastructure adapted to the needs of a market economy,
taking into account the conversion potential of Russian enterprises and
Russian interests for informatization and allowing for inter-operability
with Community information infrastructures,
- development of joint programmes concerning the training of specialists
in information technologies and information services,
- promotion of European technical standards, systems of certification
and regulatory approaches.
Article 78 Customs
1. The aim of cooperation shall be to achieve compatibility of the customs
systems of the Parties.
2. Cooperation shall include the following in particular:
- the exchange of information,
- the improvement of working methods,
- the harmonization and simplification of customs procedures regarding
the goods traded between the Parties,
- the interconnection between the transit systems of the Community and
Russia,
- the support in the introduction and management of modern customs information
systems, including computer-based systems on the customs check points,
- mutual assistance and joint actions with respect to 'dual-use` goods
and goods subject to non-tariff limitations,
- the organization of seminars and training periods.
Technical assistance shall be provided where necessary.
3. Without prejudice to further cooperation foreseen in this Agreement
and in particular Articles 82 and 84, the mutual assistance between administrative
authorities in customs matters of the Parties shall take place in accordance
with the provisions of Protocol 2.
Article 79 Statistical cooperation
1. The cooperation shall aim at further development of efficient statistical
systems, informational and programme-technological compatibility of statistical
data, to provide, in time, reliable statistics needed to support and monitor
economic cooperation between the Parties and the process of economic reform
in Russia, and also to contribute to the development of private enterprise
in Russia.
2. The Parties shall cooperate in particular:
- to enhance the development of an efficient statistical system in Russia,
in particular to elaborate an appropriate institutional framework,
- to improve the standards of training and the professional level of the
statistical personnel,
- to bring about harmonization with international, and in particular,
Community methods, standards and classifications,
- to provide private and public sector economic operators with the appropriate
macro- and microeconomic data,
- to guarantee the confidentiality of data,
- to exchange statistical information and to this end to build up and/or
to make appropriate use of databases.
Article 80 Economics
The Parties shall facilitate the process of economic reform and the coordination
of economic policies by cooperating to improve understanding of the fundamentals
of their respective economies and the design and implementation of economic
policy in market economies.
The Parties shall:
- exchange information on macroeconomic performance and prospects and
on development strategies,
- analyse economic issues of mutual interest, including the framing of
economic policies and implementation instruments,
- encourage extensive cooperation among economists and senior officials
in order to expedite the transfer of information and know-how for the
drafting of economic policies, and provide for wide dissemination of the
results of policy-relevant research.
Article 81 Money laundering
1. The Parties agree on the necessity of making efforts and cooperating
in order to prevent the use of their financial systems for laundering
of proceeds from criminal activities in general and drug offences in particular.
2. Cooperation in this area shall include administrative and technical
assistance with the purpose of establishing suitable standards against
money laundering equivalent to those adopted by the Community and international
fora in this field, including the Financial Action Task Force (FATF).
Article 82 Drugs
The Parties shall cooperate in increasing the effectiveness and efficiency
of policies and measures to counter the illicit production, supply and
traffic of narcotic drugs and psychotropic substances, including the prevention
of diversion of precursor chemicals, as well as in promoting drug demand
prevention and reduction. The cooperation in this area shall be based
on mutual consultation and close coordination between the Parties over
the objectives and measures in the various drug-related fields, and shall,
inter alia, provide for exchange of training programmes and include, where
available, technical assistance from the Community.
Article 83 Cooperation in the field of regulation of capital movements
and payments in Russia
Without prejudice to Article 52, the Parties, recognizing the necessity
of a stable functioning and development of the Russian domestic currency
market shall cooperate in the field of creation of an effective system
of regulation of capital movements and payments in Russia.
Bearing in mind the experience, competence and respective possibilities
of the Member States and the Community, cooperation in this field supported
by technical assistance from the Community shall cover inter alia:
- establishing links between competent authorities of the Community and
its Member States and of Russia,
- exchanging information on a regular basis,
- helping in the development of appropriate regulations.
In order to permit an optimal use of the resources available the Parties
shall ensure close coordination with the measures undertaken by other
countries and international organizations.
TITLE VIII COOPERATION ON PREVENTION OF ILLEGAL ACTIVITIES
Article 84
The Parties shall establish cooperation aimed at preventing illegal activities
such as:
- illegal immigration and illegal presence of physical persons of their
nationality on their respective territories, taking into account the principle
and practice of readmission,
- illegal activities in the sphere of economics, including corruption,
- illegal transactions of various goods, including industrial waste,
- counterfeiting,
- the illicit traffic of narcotic drugs and psychotropic substances.
The cooperation in the abovementioned areas will be based on mutual consultations
and close interactions and will provide technical and administrative assistance
including:
- drafting of national legislation in the sphere of preventing illegal
activities,
- creation of information centres,
- increasing the efficiency of institutions engaged in preventing illegal
activities,
- training of personnel and development of research infrastructures,
- elaboration of mutually acceptable measures impeding illegal activities.
TITLE IX CULTURAL COOPERATION
Article 85
1. The Parties undertake to promote cultural cooperation with the aim
of reinforcing the existing links between their peoples and to encourage
the mutual knowledge of their respective languages and cultures while
respecting creative freedom and reciprocal access to cultural values.
2. Cooperation shall cover in particular the following areas:
- exchange of information and experience in the field of conservation
and protection of monuments and sites (architectural heritage),
- cultural exchanges between institutions, artists and other persons working
in the area of culture,
- translation of literary works.
3. The Cooperation Council may make recommendations for the implementation
of this Article.
TITLE X FINANCIAL COOPERATION
Article 86
In order to achieve the objectives of this Agreement, in particular Titles
VI and VII thereof, and in accordance with Articles 87, 88 and 89, Russia
shall benefit from temporary financial assistance from the Community by
way of technical assistance in the form of grants to accelerate the economic
transformation of Russia.
Article 87
This financial assistance shall be covered within the framework of the
Tacis programme foreseen in the Community's relevant Council Regulation.
Article 88
The objectives and the areas of the Community's financial assistance shall
be laid down in an indicative programme reflecting established priorities
to be agreed between the Parties taking into account Russia's needs, sectoral
absorption capacities and progress with reform. The Parties shall inform
the Cooperation Council thereof.
Article 89
In order to permit optimum use of the resources available, the Parties
shall ensure that Community technical assistance contributions are made
in close coordination with those from other sources such as the Member
States, other countries, and international organizations such as the International
Bank for Reconstruction and Development and the European Bank for Reconstruction
and Development.
TITLE XI INSTITUTIONAL, GENERAL AND FINAL PROVISIONS
Article 90
A Cooperation Council is hereby established which shall monitor the implementation
of this Agreement. It shall meet at ministerial level once a year and
when circumstances require. It shall examine any major issues arising
within the framework of the Agreement and any other bilateral or international
issues of mutual interest for the purpose of attaining the objectives
of this Agreement. The Cooperation Council may also make appropriate recommendations,
by agreement between the representatives within the Cooperation Council
of the Parties.
Article 91
1. The Cooperation Council shall consist of the members of the Council
of the European Union and members of the Commission of the European Communities,
on the one hand, and of members of the Government of the Russian Federation,
on the other.
2. The Cooperation Council shall establish its rules of procedure.
3. The office of President of the Cooperation Council shall be held alternately
by a representative of the Community and by a member of the Government
of the Russian Federation.
Article 92
1. The Cooperation Council shall be assisted in the performance of its
duties by a Cooperation Committee composed of representatives of the members
of the Council of the European Union and of representatives of the Commission
of the European Communities on the one hand and of representatives of
the Government of the Russian Federation on the other, normally at senior
civil servant level. The office of President of the Cooperation Committee
shall be held alternately by a representative of the Community and by
a representative of the Government of the Russian Federation.
In its rules of procedure the Cooperation Council shall determine the
duties of the Cooperation Committee, which shall include the preparation
of meetings of the Cooperation Council, and such duties as are provided
for in Articles 16, 17 and 53 and in Annex 2, and how the Committee shall
function.
2. The Cooperation Council may delegate any of its powers to the Cooperation
Committee, which will ensure continuity between meetings of the Cooperation
Council.
Article 93
The Cooperation Council may decide to set up any other special committees
or body that can assist it in carrying out its duties and shall determine
the composition and duties of such committees or bodies and how they shall
function.
Article 94
When examining any issue arising within the framework of this Agreement
in relation to a provision referring to an Article of the GATT, the Cooperation
Council shall take into account to the greatest extent possible the interpretation
that is generally given to the Article of the GATT in question by the
Contracting Parties to the GATT.
Article 95
A Parliamentary Cooperation Committee is hereby established. It shall
meet at intervals which it shall itself determine.
Article 96
1. The Parliamentary Cooperation Committee shall consist of members of
the European Parliament, on the one hand, and of members of the Federal
Assembly of the Russian Federation, on the other.
2. The Parliamentary Cooperation Committee shall establish its rules of
procedure.
3. The Parliamentary Cooperation Committee shall be presided over in turn
by a member of the European Parliament and a member of the Federal Assembly
of the Russian Federation respectively, in accordance with the provisions
to be laid down in its rules of procedure.
Article 97
The Parliamentary Cooperation Committee may request relevant information
regarding the implementation of this Agreement from the Cooperation Council,
which shall then supply the Committee with the requested information.
The Parliamentary Cooperation Committee shall be informed of the recommendations
of the Cooperation Council.
The Parliamentary Cooperation Committee may make recommendations to the
Cooperation Council.
Article 98
1. Within the scope of this Agreement, each Party undertakes to ensure
that natural and legal persons of the other Party have access free of
discrimination in relation to its own nationals to the competent courts
and administrative organs of the Parties to defend their individual rights
and their property rights, including those concerning intellectual, industrial
and commercial property.
2. Within the limits of their respective powers, the Parties:
- shall encourage the adoption of arbitration for the settlement of disputes
arising out of commercial and cooperation transactions concluded by economic
operators of the Community and those of Russia,
- agree that where a dispute is submitted to arbitration, each Party to
the dispute may, except where the rules of the arbitration centre chosen
by the Parties provide otherwise, choose its own arbitrator, irrespective
of his nationality, and that the presiding third arbitrator or the sole
arbitrator may be a citizen of a third State,
- will recommend their economic operators to choose by mutual consent
the law applicable to their contracts,
- shall encourage recourse to the arbitration rules elaborated by the
United Nations Commission on International Trade Law (Uncitral) and to
arbitration by any centre of a State signatory to the Convention on Recognition
and Enforcement of Foreign Arbitral Awards done at New York on 10 June
1958.
Article 99
Nothing in this Agreement shall prevent a Party from taking any measures:
1. which it considers necessary for the protection of its essential security
interests:
(a) to prevent the disclosure of information contrary to its essential
security interests;
(b) which relate to fissionable materials or the materials from which
they are derived;
(c) which relate to the production of, or trade in arms, munitions or
war materials or to research, development or production indispensable
for defence purposes, provided that such measures do not impair the conditions
of competition in respect of products not intended for specifically military
purposes;
(d) in the event of serious internal disturbances affecting the maintenance
of law and order, in time of war or serious international tension constituting
threat of war or in order to carry out obligations it has accepted for
the purpose of maintaining peace and international security; or
2. which it considers necessary to respect its international obligations
and commitments or autonomous measures taken in line with such generally
accepted international obligations and commitments on the control of dual
use industrial goods and technology.
Article 100
1. In the fields covered by this Agreement and without prejudice to any
special provisions contained therein:
- the arrangements applied by Russia in respect of the Community shall
not give rise to any discrimination between the Member States, their nationals
or their companies or firms,
- the arrangements applied by the Community in respect of Russia shall
not give rise to any discrimination between Russian nationals, or its
companies or firms.
2. The provisions of paragraph 1 are without prejudice to the right of
the Parties to apply the relevant provisions of their fiscal legislation
to taxpayers who are not in identical situations in particular as regards
their place of residence.
Article 101
1. Each of the Parties may refer to the Cooperation Council any dispute
relating to the application or interpretation of this Agreement.
2. The Cooperation Council may settle the dispute by means of a recommendation.
3. In the event of it not being possible to settle the dispute in accordance
with paragraph 2, either Party may notify the other of the appointment
of a conciliator; the other Party must then appoint a second conciliator
within two months. For the application of this procedure, the Community
and its Member States shall be deemed to be one Party to the dispute.
The Cooperation Council shall appoint a third conciliator.
The conciliators' recommendations shall be taken by majority vote. Such
recommendations shall not be binding upon the Parties.
4. The Cooperation Council may establish rules of procedure for dispute
settlement.
Article 102
The Parties agree to consult promptly through appropriate channels at
the request of either Party to discuss any matter concerning the interpretation
or implementation of this Agreement and other relevant aspects of the
relations between the Parties.
The provisions of this Article shall in no way affect and are without
prejudice to Articles 17, 18, 101 and 107.
Article 103
Treatment granted to Russia hereunder shall in no case be more favourable
than that granted by the Member States to each other.
Article 104
For the purposes of this Agreement, the term 'Parties` shall mean the
Community, or its Member States, or the Community and its Member States,
in accordance with their respective powers, of the one part, and Russia,
of the other part.
Article 105
In so far as matters covered by this Agreement are covered by the Energy
Charter Treaty and Protocols thereto, such Treaty and Protocols shall
upon entry into force apply to such matters but only to the extent that
such application is provided for therein.
Article 106
This Agreement is concluded for an initial period of 10 years. The Agreement
shall be automatically renewed year by year provided that neither Party
gives the other Party written notice of denunciation of the Agreement
at least six months before it expires.
Article 107
1. The Parties shall take any general or specific measures required to
fulfil their obligations under the Agreement. They shall see to it that
the objectives set out in the Agreement are attained.
2. If either Party considers that the other Party has failed to fulfil
an obligation under the Agreement, it may take appropriate measures. Before
so doing, except in cases of special urgency, it shall supply the Cooperation
Council with all relevant information required for a thorough examination
of the situation with a view to seeking a solution acceptable to the Parties.
In the selection of these measures, priority must be given to those which
least disturb the functioning of the Agreement. These measures shall be
notified immediately to the Cooperation Council if the other Party so
requests.
Article 108
Annexes 1, 2, 3, 4, 5, 6, 7, 8, 9 and 10 together with Protocols 1 and
2 shall form an integral part of this Agreement.
Article 109
This Agreement shall not, until equivalent rights for individuals and
economic operators have been achieved hereunder, affect rights assured
to them through agreements binding one or more Member States, on the one
hand, and Russia, on the other, except in areas falling within Community
competence and without prejudice to the obligations of Member States resulting
from this Agreement in areas falling within their competence.
Article 110
This Agreement shall apply, on the one hand, to the territories in which
the Treaties establishing the European Community, the European Coal and
Steel Community and the European Atomic Energy Community are applied and
under the conditions laid down in those Treaties and, on the other hand,
to the territory of Russia.
Article 111
This Agreement is drawn up in duplicate in the Danish, Dutch, English,
French, German, Greek, Italian, Portuguese, Spanish and Russian languages,
each of these text being equally authentic.
Article 112
This Agreement will be approved by the Parties in accordance with their
own procedures.
This Agreement shall enter into force on the first day of the second month
following the date on which the Parties notify each other that the procedures
referred to in the first paragraph have been completed.
Upon its entry into force, and as far as relations between the Community
and Russia are concerned, this Agreement shall replace, without prejudice
to Article 22 (1), (3) and (5), the Agreement between the European Economic
Community and the European Atomic Energy Community and the Union of Soviet
Socialist Republics on trade and economic and commercial cooperation signed
in Brussels on 18 December 1989.
ANNEX 1
INDICATIVE LIST OF ADVANTAGES GRANTED BY RUSSIA TO THE
COUNTRIES OF THE FORMER USSR IN AREAS COVERED BY THIS AGREEMENT (as of
January 1994)
Advantages are granted bilaterally by respective agreements or by established
practice. They provide for, inter alia:
1. Import/export taxation
No import duties are applied.
No export duties are applied with respect to goods delivered under annual
bilateral interstate trade and cooperation arrangements within the nomenclature
and volumes, stipulated therein, considered as 'exportation for Federal
State needs` as defined by corresponding Russian law.
No VAT is applied on import.
No excise duties are applied on import.
2. Allocation of quotas and licensing procedures
Export quotas for deliveries of Russian products under annual bilateral
interstate trade and cooperation agreements are opened in the same way
as for 'deliveries for State needs`.
3. Special conditions for all kinds of activities in banking and the financial
sector (including establishment, operation), movement of special and current
payments, access to securities, etc.
4. Price system regarding Russian export of some kinds of raw materials
and semi-finished products (coal, crude oil, natural gas, refined oil
products)
Prices are determined on the basis of corresponding average world prices
converted in roubles or respective national currency at a rate quoted
by the Central Bank of Russia as of the 15th day of the month previous
to the month of exportation.
5. Conditions of transportation and transit
As regards countries of the Commonwealth of Independent States, that are
Parties to the Multilateral Agreement 'on the principles and conditions
of relations in the field of transport` and/or on the basis of bilateral
arrangements on transportation and transit, no taxes or fees are applied
on a reciprocal basis for the transportation and customs clearing of goods
(including goods in transit) and transit of vehicles.
6. Communications services, including postal, courier, telecommunications,
audiovisual and other services
7. Access to information systems and databases
ANNEX 2
DEROGATIONS FROM ARTICLE 15 (QUANTITATIVE RESTRICTIONS)
1. Exceptional measures which derogate from the provisions of Article
15 may be taken by Russia in the form of quantitative restrictions on
a non-discriminatory basis as provided for in Article XIII of the GATT.
Such measures can only be taken after the end of the first calendar year
following signature of the Agreement.
2. These measures may only be taken in the circumstances mentioned in
Annex 9.
3. The total value of imports of goods which are subject to these measures
may not exceed the following proportions of total imports of goods originating
in the Community:
- 10 % during the second and third calendar years following signature
of the Agreement,
- 5 % during the fourth and fifth calendar years following signature of
the Agreement,
- 3 % afterwards, until Russia's accession to the GATT/WTO.
The abovementioned proportions will be determined by reference to the
value of imports by Russia of goods originating in the Community during
the last year prior to the introduction of quantitative restrictions for
which statistics are available.
These provisions shall not be circumvented by increased tariff protection
on the imported goods concerned.
4. These measures shall not be applied after Russia's accession to the
GATT/WTO unless otherwise provided for in Russia's accession protocol
to the GATT/WTO.
5. Russia shall inform the Cooperation Committee of any measures it intends
to take under the terms of the present Annex, and consultations shall
be held in the Cooperation Committee if so requested by the Community
on such measures before they are taken, and on the sectors to which they
apply.
ANNEX 3
COMMUNITY RESERVATIONS IN ACCORDANCE WITH ARTICLE 28 (2)
Mining
In some Member States, a concession may be required for mining and mineral
rights for non-Community controlled companies.
Fishing
Access to and use of the biological resources and fishing grounds situated
in the maritime waters coming under the sovereignty or within the jurisdiction
of Member States is restricted to fishing vessels flying the flag of a
Member State and registered in Community territory unless otherwise provided
for.
Real estate purchase
In some Member States, the purchase of real estate is subject to limitations.
Audiovisual services including radio
National treatment concerning production and distribution, including broadcasting
and other forms of transmission to the public, may be reserved to audiovisual
works meeting certain origin criteria.
Telecommunications services including mobile and satellite services
Reserved services
In some Member States market access concerning complementary services
and infrastructures is restricted.
Professional services
Services reserved to natural persons nationals of Members States. Under
certain conditions those persons may create companies.
Agriculture
In some Member States national treatment is not applicable to non-Community
controlled companies which wish to undertake an agricultural enterprise.
The acquisition of vineyards by non-Community controlled companies is
subject to notification, or, as necessary, authorization.
News agency services
In some Member States limitations of foreign participation in publishing
companies and broadcasting companies.
ANNEX 4
RUSSIAN RESERVATIONS IN ACCORDANCE WITH ARTICLE 28 (3)
Use of subsoil and natural resources including mining
1. A concession may be required for mining some ores and metals for non-Russian
controlled companies.
2. Some special auctions for the use of subsoil and natural resources
for small enterprises or defence enterprises undergoing military conversion
may be closed to non-Russian controlled companies.
Fishing
Authorization from the respective governmental body is necessary for fishing.
Real estate (immovable property) purchase and brokerage
(a) Non-Russian controlled companies are not allowed to acquire plots
of land. Those companies, however, can lease plots of land for a period
of no more than 49 years.
(b) As an exception to paragraph (a), non-Russian controlled companies
can acquire plots of land in the cases when such companies are recognized
as buyers in accordance with the Law of the Russian Federation on the
privatization of state and municipal enterprises in the Russian Federation
and other respective legislation and regulations, including the requirements
of programmes of privatization:
- within the framework of the privatization of state and municipal enterprises
in the form of commercial investment tender and auction,
- within the framework of the expansion and additional construction of
enterprises in the form of commercial investment tender and auction.
Telecommunications
Telecommunication services including mobile and satellite services, construction,
installation, operation and maintenance of communication devices are restricted.
Mass media services
Some limitations of foreign participation in mass media companies.
Professional activities
Some activities closed, limited or subject to special requirements for
natural persons who are non-Russian nationals.
Lease of Federal property
The lease of Federal property whose value exceeds 100 million roubles
to companies with foreign participation is effected with the permission
of the state authority empowered to manage such property. This maximum
is to be raised and will be expressed in convertible currency.
ANNEX 5
CROSS-BORDER SUPPLY OF SERVICES LIST OF SERVICES FOR WHICH THE PARTIES
SHALL GRANT MOST-FAVOURED-NATION (MFN) TREATMENT
(a) Sectors to be covered, according to the provisional Central Product
Classification (CPC) of the United Nations Organization:
Consultancy services relating to accounting review services: part of CPC
86212 other than 'auditing services`
Consultancy services relating to bookkeeping services CPC 86220
Engineering services CPC 8672
Integrated engineering services CPC 8673
Advisory and pre-design architectural services CPC 86711
Architectural design services CPC 86712
Urban planning and landscape architectural services CPC 8674
Computer and related services:
Consultancy services related to the installation of computer hardware
CPC 841
Software implementation services CPC 842
Database services CPC 844
Advertising CPC 871
Market research and opinion polling CPC 864
Management consulting services CPC 866
Technical testing and analysis services CPC 8676
Advisory and consulting services relating to agriculture, hunting and
forestry
Advisory and consulting services relating to fishing
Advisory and consulting services relating to mining
Printing and publishing CPC 88442
Convention services
Translation services CPC 87905
Interior design services CPC 87907
Telecommunications:
Value-added services including (but not limited to) electronic mail, voice
mail, on-line information and database retrieval, data processing, EDI,
code and protocol conversion
Packet and circuit switched data services
Construction and related engineering services: site investigation work
CPC 5111
Franchising CPC 8929
Adult education services by correspondence part of CPC 924
News and press agency services CPC 962
Rental/leasing services without operators related to other transport equipment
(CPC 83101 private cars, 83102 goods transport vehicles, 83105) and relating
to other machinery and equipment (CPC 83106, 83107, 83108, 83109)
Commission agents services and wholesale trade services related to import-export
trade (part of CPC 621 and 622)
Research and development in software
Reinsurance and retrocession and the services auxiliary to insurance,
such as consultancy, actuarial, risk assessment and claim settlement services
Insurance of risks relating to:
(i) maritime shipping and commercial aviation and space launching and
freight (including satellites), with such insurance to cover any or all
of the following: persons being transported, the goods being exported
from or imported to, the same vehicle transporting the goods and any liability
arising therefrom;
(ii) goods in international transit; and
(iii) accident and health insurance; and personal motor liability insurance
in the case of cross-border movement.
(b) Data processing services CPC 843
Provision and transfer of financial information and financial data processing
(see paragraphs B.11 and B.12 of Annex 6):
For the services listed under paragraph (b) MFN subject to Article 38
will be applied, without paragraph A of Annex 8.
ANNEX 6
DEFINITIONS IN RELATION TO FINANCIAL SERVICES
A financial service is any service of a financial nature offered by a
financial service supplier of one of the Parties. Financial services include
the following activities:
A. All insurance and insurance-related services
1. Direct insurance (including co-insurance)
(i) life;
(ii) non-life.
2. Reinsurance and retrocession.
3. Insurance intermediation, such as brokerage and agency.
4. Services auxiliary to insurance, such as consultancy, actuarial, risk
assessment and claim settlement services.
B. Banking and other financial services (excluding insurance)
1. Acceptance of deposits and other repayable funds from the public.
2. Lending of all types, including consumer credit, mortgage credit, factoring
and financing of commercial transactions.
3. Financial leasing.
4. All payment and money transmission services, including credit charge
and debit cards, travellers cheques and bankers drafts.
5. Guarantees and commitments.
6. Trading for own account or for the account of customers, whether on
an exchange, in an over the counter market or otherwise, the following:
(a) money market instruments (including cheques, bills, certificates of
deposits, etc.);
(b) foreign exchange;
(c) derivative products including, but not limited to, futures and options;
(d) exchange rates and interest rate instruments, including products such
as swaps, forward rate agreements, etc.;
(e) transferable securities;
(f) other negotiable instruments and financial assets, including bullion.
7. Participation in issues of all kinds of securities, including underwriting
and placement as agent (whether publicly or privately) and provision of
services related to such issues.
8. Money broking.
9. Asset management, such as cash or portfolio management, all forms of
collective investment management, pension fund management, custodial depository
and trust services.
10. Settlement and clearing services for financial assets, including securities,
derivative products, and other negotiable instruments.
11. Provision and transfer of financial information, and financial data
processing and related software by suppliers of other financial services.
12. Advisory intermediation and other auxiliary financial services on
all the activities listed in points 1 to 11 above, including credit reference
and analysis, investment and portfolio research and advice, advice on
acquisitions and on corporate restructuring and strategy.
The following activities are excluded from the definition of financial
services:
(a) activities carried out by central banks or by any other public institution
in pursuit of monetary and exchange rate policies;
(b) activities conducted by central banks, government agencies or departments,
or public institutions, for the account or with the guarantee of the government,
except when those activities may be carried out by financial service suppliers
in competition with such public entities;
(c) activities forming part of a statutory system of social security or
public retirement plans, except when those activities may be carried out
by financial service suppliers in competition with public entities or
private institutions.
ANNEX 7
FINANCIAL SERVICES
A. In respect of banking services referred to in Annex 6, Part B, the
most-favoured-nation treatment granted pursuant to Article 28 (1), with
regard to establishment by means of the setting up of a subsidiary only
(excluding therefore establishment by means of the setting up of a branch),
and the national treatment granted pursuant to Article 28 (3), by Russia
means treatment no less favourable than the treatment granted by Russia
to its own companies with the following exceptions:
1. Russia reserves the right:
(a) to continue to apply to Russian subsidiaries and branches of Community
companies the ceiling limiting the overall share of foreign capital in
the Russian banking system which is in operation on the date of signature
of the Agreement;
(b) to apply to Russian subsidiaries of Community companies a minimum
capital requirement higher than that applied to its own companies provided
that this minimum capital requirement is not raised as compared with the
one in force on the date of signature of the Agreement before national
treatment is applied in respect of the minimum capital requirement;
(c) to restrict the number of branches of Russian subsidiaries of Community
companies;
(d) to set a minimum level not higher than ECU 55 000 for balances on
accounts of each physical person with Russian subsidiaries of Community
companies;
(e) to prohibit Russian subsidiaries of Community companies from carrying
out transactions with shares and instruments convertible into shares of
Russian joint stock companies;
(f) to prohibit Russian subsidiaries of Community companies from carrying
out transactions with Russian residents.
2. The exceptions in paragraph 1 may only apply under the following conditions:
(i) provided that they are applied to subsidiaries of companies of every
country; and
(ii) for the exceptions mentioned in paragraph 1, subparagraphs (c), (d)
and (e):
(a) until the expiry of five years from signature of the Agreement at
the latest for the exceptions mentioned in subparagraphs (c) and (d) and
three years for the exception mentioned in subparagraph (e); and
(b) where the proportion of the share capital of the Russian subsidiary
of the Community company held by Russian nationals or companies does not
exceed fifty percent (50 %); and
(c) to Russian subsidiaries of Community companies established after the
entry into force of these exceptions;
(iii) for the exception mentioned in paragraph 1, subparagraph (f), until
1 January 1996 and only to Russian subsidiaries of Community companies
established after 15 November 1993 or which have not commenced their operations
with Russian residents before 15 November 1993.
3. (a) After the expiry of five years from the date of signature of the
Agreement, Russia will consider the possibility of:
(i) increasing the ceiling limiting the overall share of foreign capital
in the Russian banking system which is in operation on the date of the
signature of this Agreement, mentioned in subparagraph (a) of paragraph
1, taking into consideration all the relevant monetary, fiscal, financial
and balance of payments considerations and the state of the banking system
of Russia;
(ii) reducing the minimum capital requirement, mentioned in subparagraph
(b) of paragraph 1, taking into consideration all the relevant monetary,
fiscal, financial and balance of payments considerations and the state
of the banking system of Russia.
(b) After the expiry of three years from the signature of this Agreement,
Russia will consider the softening of restrictions mentioned in subparagraphs
(c) and (d) of paragraph 1, taking into consideration all the relevant
monetary, fiscal, financial and balance of payments considerations and
the state of the banking system of Russia.
B. In respect of insurance services referred to in Annex 6, Part A, paragraphs
1 and 2 the most-favoured-nation treatment granted pursuant to Article
28 (1) with regard to establishment by means of the setting up of a subsidiary
only authorized for the insurance operations is set out in the legislation
and regulations applicable in Russia on the day of establishment taking
into account the following conditions:
1. upon the expiry of five years from signature of the Agreement at the
latest, Russia shall abolish the maximum foreign shareholding limit of
49 % in company capital;
2. during the transitional period of five years the abolition of the maximum
foreign shareholding limit does not prevent Russia from introducing measures
for granting licences to Community companies in some classes of insurance.
These measures could be taken only in the field of compulsory insurance
schemes in the social security, or for public procurement, or for the
reasons described in Article 29 (2), and shall not nullify or substantially
impair the effects of the abolition of the maximum foreign shareholding
limit of 49 %.
ANNEX 8
PROVISIONS IN RELATION TO ARTICLES 34 AND 38
Part A
The consultations shall begin within 30 days of the request therefor by
the first Party. They shall be held with a view to reaching agreement
either on:
- withdrawal by the other Party of the measures which have resulted in
the significantly more restrictive situation, or
- adjustments of the obligations of both Parties, or
- adjustments to be made by the first Party to compensate for the more
restrictive situation created by the other Party.
If agreement is not reached within 60 days of the request for consultations
made by the first Party, such first Party may make appropriate compensatory
adjustments to its obligations. Such adjustments shall be made to the
extent and for such time as is necessary to take account of the significantly
more restrictive situation created by the other Party. Priority must be
given to those measures which least disturb the functioning of the Agreement.
The rights which economic operators have acquired under the Agreement
at the time such adjustments are made shall not be affected by the said
adjustments.
Part B
1. Acting in the spirit of partnership and cooperation the Government
of Russia shall inform the Community, during a transitional period of
three years following the signature of the Agreement, of its intentions
to submit new legislation or adopt new regulations which may render the
conditions for the establishment or operation of Russian subsidiaries
and branches of Community companies more restrictive than the situation
existing on the day preceding the date of signature of the Agreement.
The Community may request Russia to communicate the drafts of such legislation
or regulations and to enter into consultations about those drafts.
2. Where new legislation or regulations introduced in Russia within the
transitional period mentioned in paragraph 1 would result in rendering
the conditions for operation of Russian subsidiaries and branches of Community
companies more restrictive than the situation existing on the day of signature
of the Agreement, such respective legislation or regulations shall not
apply to those subsidiaries and branches already established in Russia
at the time of entry into force of the relevant act, until the expiry
of a period of three years from such entry into force.
ANNEX 9
TRANSITIONAL PERIOD FOR PROVISIONS ON COMPETITION AND FOR THE INTRODUCTION
OF QUANTITATIVE RESTRICTIONS
The circumstances mentioned in Article 53 paragraph 2.3 and in Annex 2,
paragraph 2 are understood in respect of sectors of the Russian economy
which:
- are undergoing restructuring, or
- are facing serious difficulties, particularly where these entail serious
social problems in Russia, or
- face the elimination or a drastic reduction of the total market share
held by Russian companies or nationals in a given sector or industry in
Russia, or
- are newly emerging industries in Russia.
ANNEX 10
PROTECTION OF INTELLECTUAL, INDUSTRIAL AND COMMERCIAL PROPERTY REFERRED
TO IN ARTICLE 54
1. Russia shall continue to improve the protection of intellectual, industrial
and commercial property rights in order to provide, by the end of the
fifth year after the entry into force of the Agreement, for a level of
protection similar to that existing in the Community, including effective
means of enforcing such rights.
2. By the end of the fifth year following entry into force of the Agreement,
Russia shall accede to the multilateral conventions on intellectual, industrial
and commercial property rights to which Member States are parties or which
are de facto applied by Member States, according to the relevant provisions
contained in these conventions:
- Berne Convention for the Protection of Literary and Artistic Works (Paris
Act, 1971),
- International Convention for the Protection of Performers, Producers
of Phonograms and Broadcasting Organizations (Rome, 1961),
- International Convention for the Protection of New Varieties of Plants
(UPOV) (Geneva Act, 1978).
3. The Cooperation Council may recommend that paragraph 2 of this Annex
shall apply to other multilateral conventions.
4. From the entry into force of this Agreement, Russia shall grant to
Community companies and nationals, in respect of the recognition and protection
of intellectual, industrial and commercial property, treatment no less
favourable than that granted by it to any third country under bilateral
agreements.
5. The provisions of paragraph 4 shall not apply to advantages granted
by Russia to any third country on an effective reciprocal basis and to
advantages granted by Russia to another country of the former USSR.
PROTOCOL 1 on the establishment of a coal and steel contact group
1. A contact group is established between the Parties. The group is composed
of representatives of the Community and of Russia.
2. The contact group exchanges information on the situation of the coal
and steel industries in both territories and on trade between them, particularly
with the purpose of identifying such problems as might arise.
3. The contact group also examines the situation of the coal and steel
industries at world level, including developments in international trade.
4. The contact group exchanges all useful information on the structure
of the industries concerned, the development of their production capacities,
the science and research progress in the relevant fields, and the evolution
of employment. The group also examines pollution and environmental problems.
5. The contact group also examines the progress made in the framework
of technical assistance between the Parties, including assistance to financial,
commercial and technical management.
6. The contact group exchanges all relevant information as to attitudes
taken, or to be taken, in the appropriate international organizations
or fora.
7. As and when both Parties agree that the presence and/or participation
of representatives of the industries is appropriate, the contact group
is enlarged to include them.
8. The contact group meets twice a year, alternately on the territories
of each Party.
9. The chairmanship of the contact group is held alternately by a representative
of the Commission of the European Communities and a representative of
the Government of the Russian Federation.
PROTOCOL 2 on mutual administrative assistance for the correct application
of customs legislation
Article 1 Definitions
For the purposes of this Protocol:
(a) 'customs legislation` shall mean provisions applicable in the territories
of the Parties and governing the import, export, transit of goods and
their placing under any customs procedure, including measures of prohibition,
restriction and control and adopted by the said Parties;
(b) 'customs duties` shall mean all duties, taxes, fees or any other charges
which are levied and collected in the territories of the Parties, in application
of customs legislation, but not including fees and charges which are limited
in amount to the approximate costs of services rendered;
(c) 'applicant authority`, shall mean a competent administrative authority
which has been appointed by a Party for this purpose and which makes a
request for assistance in customs matters;
(d) 'requested authority`, shall mean a competent administrative authority
which has been appointed by a Party for this purpose and which receives
a request for assistance in customs matters;
(e) 'contravention`, shall mean any violation of the customs legislation
as well as any attempted violation of such legislation.
Article 2 Scope
1. The Parties shall assist each other, within their competences, in the
manner and under the conditions laid down in this Protocol, in ensuring
that customs legislation is correctly applied, in particular by the prevention,
detection and investigation of contraventions of this legislation.
2. Assistance, in customs matters, as provided for in this Protocol, applies
to any administrative authority of the Parties which is competent for
the application of this Protocol. It shall not prejudice the rules governing
mutual assistance in criminal matters. Nor shall it cover information,
including documents obtained under powers exercised at the request of
the judicial authority, unless those authorities so agree.
Article 3 Assistance on request
1. At the request of the applicant authority, the requested authority
shall furnish it with all relevant information to enable it to ensure
that customs legislation is correctly applied, including information regarding
operations detected or planned which are, appear or would be in contravention
of such legislation.
2. At the request of the applicant authority, the requested authority
shall inform it whether goods exported from the territory of one of the
Parties have been properly imported into the territory of the other Party,
specifying, where appropriate, the customs procedure applied to the goods.
3. At the request of the applicant authority, the requested authority
shall take the necessary steps to ensure that a surveillance is kept on:
(a) natural or legal persons of whom there are reasonable grounds for
believing that they are contravening or have contravened customs legislation;
(b) places where stocks of goods have been assembled in such a way that
there are reasonable grounds for supposing that they are intended as supplies
for operations contrary to the customs legislation of the other Party;
(c) movements of goods notified as possibly giving rise to contraventions
of customs legislation;
(d) means of transport for which there are reasonable grounds for believing
that they have been, or are or may be used in the contravening of customs
legislation.
Article 4 Spontaneous assistance
The Parties shall within their competences provide each other with assistance
without prior request where they consider that to be necessary for the
correct application of customs legislation, particularly when they obtain
information pertaining to:
- operations detected or planned, which are, appear or would be in contravention
of such legislation,
- new means or methods employed in realizing such operations,
- goods known to be subject to substantial contravention of customs legislation
on import, export, transit or any other customs procedure.
Article 5 Form and substance of requests for assistance
1. Requests pursuant to this Protocol shall be made in writing. Documents
necessary for the execution of such requests shall accompany the request.
When required because of the urgency of the situation, oral requests may
be accepted, but must be confirmed in writing immediately.
2. Requests pursuant to paragraph 1 of this Article shall include the
following information:
(a) the applicant authority making the request;
(b) the measure requested;
(c) the object of and the reason for the request;
(d) the laws, rules and other legal elements involved;
(e) indications as exact and comprehensive as possible on the natural
or legal persons being the target of the investigations;
(f) a summary of the relevant facts.
3. Requests shall be submitted in an official language of the requested
authority or in a language acceptable to such authority.
4. If a request does not meet the formal requirements, its correction
or completion may be demanded; the ordering of precautionary measures
may, however, take place.
Article 6 Execution of requests
1. Requests for assistance will be executed in accordance with the laws,
rules and other legal instruments of the requested Party.
2. In order to comply with a request for assistance, the requested authority
shall proceed, within its competence and available resources, as though
it were acting on its own account or at the request of other authorities
of that same Party, by supplying information already possessed, by carrying
out appropriate enquiries or by arranging for them to be carried out.
3. Duly authorized officials of a Party may, with the agreement of the
other Party involved and within the conditions laid down by the latter,
obtain from the offices of the requested authority or other authority
for which the requested authority is responsible, information relating
to the contravention of customs legislation which the applicant authority
needs for the purposes of this Protocol.
4. Officials of a Party may, in particular cases with the agreement of
the other Party involved and within the conditions laid down by the latter,
be present at enquiries carried out in the latter's territory.
5. When, in the circumstances provided for under this Protocol, officials
of one Party are present at enquiries carried out in the territory of
the other Party, they must, at all times, be able to furnish proof of
their official capacity. They must not wear uniform nor carry arms.
Article 7 Form in which information is to be communicated
1. Under the conditions and within the limits laid down in this Protocol,
the Parties shall communicate each other information in the form of documents,
certified copies of documents, reports and the like.
2. Original files and documents may be transmitted on request only in
cases where certified copies would be insufficient. Those files and documents
shall be returned at the earliest opportunity.
3. The documents provided for in paragraph 1 may be replaced by computerized
information produced in any form for the same purpose. All relevant information
for the utilization of the material shall be supplied on request.
Article 8 Exceptions to the obligation to provide assistance
1. The Parties may refuse to give assistance as provided for in this Protocol,
provide it partially or provide it subject to certain conditions or requirements,
where to do so would:
(a) be likely to prejudice sovereignty, public policy, security or other
essential interests;
or
(b) violate an industrial, commercial or professional secret.
2. Where the applicant authority asks for assistance which it would itself
be unable to provide if asked so by another party, it shall draw attention
to that fact in its request. It shall then be left to the requested authority
to decide how to respond to such a request.
3. If assistance is withheld or denied, the decision and the reasons therefore
must be notified in written form to the applicant authority without delay.
Article 9 Obligation to observe confidentiality
1. Any information communicated in whatsoever form pursuant to this Protocol
shall be of a confidential nature. It shall be covered by the obligation
of official secrecy and shall enjoy the protection extended to like information
under the relevant legislation applicable in the Party which received
it and the corresponding provisions applying to the Community institutions.
2. Nominative data shall not be transmitted whenever there are reasonable
grounds to believe that the transfer or the use made of the data transmitted
would be contrary to the basic legal principles of one of the Parties,
and, in particular, if the person concerned would suffer a prejudice to
fundamental human rights. Upon request, the receiving Party shall inform
the furnishing Party of the use made of the information supplied and of
the results achieved.
3. Nominative data may only be transmitted to customs authorities and,
in the case of need for prosecution purposes, to public prosecution and
judicial authorities. Other persons or authorities may obtain such information
only upon previous authorization by the furnishing authority.
4. The furnishing Party shall verify the accuracy of the information to
be transferred. Whenever it appears that the information supplied was
inaccurate or to be deleted, the receiving Party shall be notified without
delay. The latter shall be obliged to carry out the correction or deletion.
5. Without prejudice to cases of prevailing public interest, the person
concerned may obtain, upon request, information on the data stores and
the purpose of this storage.
Article 10 Use of information
1. Information obtained shall be used solely for the purposes of this
Protocol and may be used within each Party for other purposes only with
the prior written consent of the administrative authority which furnished
the information and shall be subject to any restrictions laid down by
that authority.
2. Paragraph 1 shall not impede the use of information in any judicial
or administrative proceedings subsequently instituted for failure to comply
with customs legislation.
3. The Parties may, in their records of evidence, reports and testimonies
and in proceedings and charges brought before the courts, use as evidence
information obtained and documents consulted in accordance with the provisions
of this Protocol.
Article 11 Experts and witnesses
An official of a requested authority may be authorized to appear, within
the limitations of the authorization granted, as expert or witness in
judicial or administrative proceedings regarding the matters covered by
this Protocol in the jurisdiction of another Party, and produce such objects,
documents or authenticated copies thereof, as may be needed for the proceedings.
The request for an appearance must indicate specifically on what matters
and by virtue of what title or qualification the official will be questioned.
Article 12 Assistance expenses
The Parties shall waive all claims on each other for the reimbursement
of expenses incurred pursuant to this Protocol, except, as appropriate,
for expenses to experts and witnesses and to interpreters and translators
who are not dependent upon public services.
Article 13 Implementation
1. The management of this Protocol shall be entrusted to the competent
services of the Commission of the European Communities and, where appropriate,
the customs authorities of the Member States on the one hand and the central
customs authorities of Russia on the other. They shall decide on all practical
measures and arrangements necessary for its application, taking into consideration
rules in the field of data protection. They may recommend to the Cooperation
Council amendments which they consider should be made to this Protocol.
2. The Parties shall consult each other and subsequently keep each other
informed of the detailed rules of implementation which are adopted in
accordance with the provisions of this Protocol.
Article 14 Complementarity
1. This Protocol shall complement and not impede the application of any
agreements on mutual assistance which have been concluded between individual
or several Member States and Russia. Nor shall it preclude more extensive
mutual assistance granted under such agreements concluded or to be concluded.
2. Without prejudice to Article 10, these agreements do not prejudice
Community provisions governing the communication between the competent
services of the Commission and the customs authorities of the Member States
of any information obtained in customs matters which could be of Community
interest.
FINAL ACT
The plenipotentiaries of:
the KINGDOM OF BELGIUM,
the KINGDOM OF DENMARK,
the FEDERAL REPUBLIC OF GERMANY,
the HELLENIC REPUBLIC,
the KINGDOM OF SPAIN,
the FRENCH REPUBLIC,
IRELAND,
the ITALIAN REPUBLIC,
the GRAND DUCHY OF LUXEMBOURG,
the KINGDOM OF THE NETHERLANDS,
the PORTUGUESE REPUBLIC,
the UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND,
Contracting Parties to the Treaty establishing the EUROPEAN COMMUNITY,
the Treaty establishing the EUROPEAN COAL AND STEEL COMMUNITY, and the
Treaty establishing the EUROPEAN ATOMIC ENERGY COMMUNITY,
hereinafter referred to as the 'Member States`, and of
the EUROPEAN COMMUNITY, the EUROPEAN COAL AND STEEL COMMUNITY and the
EUROPEAN ATOMIC ENERGY COMMUNITY, hereinafter referred to as 'the Community`,
of the one part, and
the plenipotentiary of the RUSSIAN FEDERATION, hereinafter referred to
as 'Russia`,
of the other part,
meeting at Corfu this twenty-fourth day of June in the year one thousand
nine hundred and ninety-four for the signature of the Agreement on Partnership
and Cooperation establishing a partnership between the European Communities
and their Member States, of the one part, and the Russian Federation,
of the other part, hereinafter referred to as the 'Agreement on Partnership
and Cooperation`, have adopted the following texts:
The Agreement on Partnership and Cooperation including its Annexes and
the following Protocols:
Protocol 1 on the establishment of a coal and steel contact group,
Protocol 2 on mutual administrative assistance for the correct application
of customs legislation.
The plenipotentiaries of the Member States and of the Community and the
plenipotentiary of Russia have adopted the texts of the Joint Declarations
listed below and annexed to this Final Act:
Joint Declaration in relation to Title III and Article 94 of the Agreement
Joint Declaration in relation to Article 10 of the Agreement
Joint Declaration in relation to Article 12 of the Agreement
Joint Declaration in relation to Article 17 of the Agreement
Joint Declaration in relation to Article 18 of the Agreement
Joint Declaration in relation to Article 22 (1), second indent of the
Agreement
Joint Declaration in relation to Article 24 of the Agreement
Joint Declaration in relation to Articles 26, 32 and 37 of the Agreement
Joint Declaration in relation to Article 28 of the Agreement
Joint Declaration in relation to Article 29 (3) of the Agreement
Joint Declaration in relation to Article 30 of the Agreement
Joint Declaration in relation to Article 30 (a) and (g) of the Agreement
Joint Declaration in relation to the notion of 'control` in Article 30
(b) and Article 45 of the Agreement
Joint Declaration in relation to Article 30 (h), third subparagraph of
the Agreement
Joint Declaration in relation to Article 31 of the Agreement
Joint Declaration in relation to Article 34 (1) of the Agreement
Joint Declaration in relation to Articles 34 and 38 of the Agreement
Joint Declaration in relation to Article 35 of the Agreement
Joint Declaration in relation to Article 39 (2) (c), second subparagraph
of the Agreement on opening ports
Joint Declaration in relation to Article 39 (2) (c), second subparagraph
of the Agreement on vessels under a third flag
Joint Declaration in relation to Article 44 of the Agreement
Joint Declaration in relation to Article 46 (2) of the Agreement
Joint Declaration in relation to Article 48 of the Agreement
Joint Declaration in relation to Article 52 of the Agreement
Joint Declaration in relation to Article 53 paragraph 2.2 of the Agreement
Joint Declaration in relation to Article 54 of the Agreement
Joint Declaration in relation to Article 99 of the Agreement
Joint Declaration in relation to Article 101 of the Agreement
Joint Declaration in relation to Article 107 of the Agreement
Joint Declaration in relation to Article 107 (2) of the Agreement
Joint Declaration in relation to Articles 2 and 107 of the Agreement
Joint Declaration in relation to Article 112 of the Agreement
Joint Declaration in relation to Article 6 of Protocol 2.
The plenipotentiaries of the Member States and of the Community and the
plenipotentiary of Russia have also taken note of the following exchanges
of letters annexed to this Final Act:
Exchange of letters in relation to Article 22 of the Agreement
Exchange of letters in relation to Article 52 of the Agreement.
The plenipotentiary of Russia has taken note of the Declarations listed
below and annexed to this Final Act:
Community Declaration in relation to Article 36 of the Agreement
Community Declaration in relation to Article 54 of the Agreement.
The plenipotentiaries of the Member States and of the Community have taken
note of the Declaration listed below and annexed to this Final Act:
Declaration by Russia in relation to Article 36 of the Agreement.
Joint Declaration in relation to Title III and Article 94
For the purpose of Title III and Article 94, the GATT is understood to
be the General Agreement on Tariffs and Trade signed in Geneva in 1947
as amended, as applied at the date of signature of the present Agreement,
if the Parties do not agree otherwise within the framework of the Cooperation
Council established under Article 90.
Joint Declaration in relation to Article 10
The Parties agree that the provisions of paragraph 1 of Article 10 shall
not apply to conditions of import of products to the territory of Russia
under financial loans and credits granted for development and humanitarian
purposes, technical and humanitarian assistance and other similar arrangements,
concluded between Russia and third States or international organizations
in so far as such States or international organizations require special
treatment for such imports.
Joint Declaration in relation to Article 12
Article 12, within Title III on trade in goods, deals with the question
of transit. It is the understanding of the Parties that Article 12 deals
exclusively with the freedom of transit of goods. This is according to
normal GATT practice. The issue of transit may be taken up in the future
negotiations on transport agreements as indicated in Article 43.
Joint Declaration in relation to Article 17
The Community and Russia declare that the text of the safeguard clause
(Article 17) does not grant GATT safeguard treatment.
Joint Declaration in relation to Article 18
It is understood that the provisions of Article 18 and those of the following
paragraph are neither intended to, nor shall, slow down, hinder or impede
the procedure provided for in the respective legislation of the Parties
regarding antidumping and subsidies investigations.
The Parties agree that, without prejudice to their legislation and practice,
when establishing normal value due account shall be taken overall, in
each case on its merits, when natural comparative advantages can be shown
by the manufacturers involved to be held with regard to factors such as
access to raw materials, production process, proximity of production to
customers and special characteristics of the product.
Joint Declaration in relation to Article 22 (1), second indent
With respect to the Community the legislation and regulations, referred
to in Article 6 of the 1989 Agreement, include, inter alia, the Treaty
establishing the European Atomic Energy Community and implementing regulations
thereof, in particular the provisions of those texts, which specify the
rights, powers and responsibilities of the Euratom Supply Agency and of
the Commission of the European Communities.
Joint Declaration in relation to Article 24
It is understood that the notion 'members of their family` is defined
in accordance with the national legislation of the host country concerned.
Joint Declaration in relation to Articles 26, 32 and 37
The Parties shall ensure that the issuing of visas and residents' permits
in conformity with the laws and regulations of the Member States and Russia
respectively is conducted in a manner consistent with the principles of
the concluding document of the CSCE Bonn Conference, in particular with
a view to facilitating the prompt entry, stay and movement of businessmen
in the Member States and in Russia. Such efforts shall apply in particular
to key personnel referred to in Article 32 and to the sellers of cross-border
services referred to in Article 37, and ensure that the administrative
procedures do not nullify or impair the benefits accruing to any Party
under these Articles of the Agreement.
The Parties agree that an important element in this context is the timely
conclusion of re-admission agreements between the Member States and Russia.
The Cooperation Council shall regularly review the evolution of the situation
in these areas.
Joint Declaration in relation to Article 28
Without prejudice to the provisions of Articles 50 and 51, the Parties
agree that the words 'in conformity with . . . legislation and regulations`
mentioned in paragraphs 1 and 4 of Article 28 mean that each Party may
regulate the establishment of companies, by means of setting up subsidiaries
and branches, as defined in Article 30 and the operation of branches provided
that this legislation and regulations do not create reservations resulting
in a less favourable treatment than that accorded to companies or branches
of any third country respectively.
Without prejudice to the reservations listed in Annexes 3 and 4 and to
the provisions of Articles 50 and 51, the Parties agree that the words
'in conformity with . . . legislation and regulations` mentioned in paragraphs
2 and 3 of Article 28 mean that each Party may regulate the operation
of companies on its territory, provided that this legislation and regulations
do not create for the operations of companies of the other Party any new
reservations resulting in a less favourable treatment than that accorded
to their own companies or to subsidiaries of companies of any third country
whichever is the better.
Joint Declaration in relation to Article 29 (3)
The Parties confirm that nothing in Article 29 (3) prevents Russia from
adopting any new regulations or measures which would introduce or worsen
discrimination as compared to the situation existing on the date of the
signature of the Agreement as regards conditions affecting the establishment
of non-Community companies in its territory in comparison to its own companies.
Joint Declaration in relation to Article 30
The Parties confirm the importance of ensuring that the granting of licences
referred to in Article 30 (a) and (g):
- shall be based on objective and transparent criteria, such as competence
and the ability to supply the service,
- shall not be more burdensome than necessary to ensure the quality of
the service,
- shall not in itself constitute a restriction on the supply of the service.
Joint Declaration in relation to Article 30 (a) and (g)
Article 30 (a), second subparagraph and (g), second subparagraph, take
into account the specificity of access to financial services as it is
agreed in the framework of this Agreement, and do not affect the definitions
of 'establishment` and 'operation` as they apply to financial services
for other purposes than the purpose of this Agreement.
Joint Declaration in relation to the notion of 'control` in Articles
30 (b) and 45
1. The Parties confirm their mutual understanding that the question of
control shall depend on the factual circumstances of the particular case.
2. A company shall, for example, be considered as being 'controlled` by
another company, and thus a subsidiary of such other company if:
- the other company holds directly or indirectly a majority of the voting
rights, or
- the other company has the right to appoint or dismiss a majority of
the administrative organ, of the management organ or of the supervisory
organ and is at the same time a shareholder or member of the subsidiary.
3. Both Parties consider the criteria in paragraph 2 to be non-exhaustive.
Joint Declaration in relation to Article 30 (h), third subparagraph
Taking into account the restrictions existing at present concerning the
carriage of goods and passengers by inland transport modes, the Parties
agree that until such restrictions are lifted, the expression 'intermodal
transport operations involving a sea-leg` is understood to mean the organization
of such operations.
Joint Declaration in relation to Article 31
The provisions of Article 31 permit the Parties to apply any measure intended
to prevent circumvention by a company of a third country of the measures
of the Parties concerning establishment of companies of that third country
in their respective territories by means of any possibility provided for
in this Agreement.
Joint Declaration in relation to Article 34 (1)
Taking into account the explanations given by Russia to the Community
that in certain respects and for certain sectors the treatment granted
to Russian subsidiaries and branches of Community companies is better
than the treatment offered to Russian companies in general, namely national
treatment, the Parties agree that if measures were introduced by Russia
to align the treatment of Russian subsidiaries and branches of foreign
companies down to national treatment, this cannot be considered to violate
the obligation on Russia to use its best endeavours contained in Article
34 (1).
Joint Declaration in relation to Articles 34 and 38
The Parties agree that if either Party were to be of the view that the
other had not correctly interpreted the terms 'significantly more restrictive`
in Articles 34 (2) or 38 (3), such Party may have to resort to the procedures
set out in Article 101.
Joint Declaration in relation to Article 35
The Parties agree that the activities referred to in Article 35 (3), subparagraphs
(a) and (b) do not include acting as a carrier.
Joint Declaration in relation to Article 39 (2) (c), second subparagraph
on opening ports
On the basis of the information provided by the Russian side concerning
their ports open to foreign vessels, the Community takes note that Russia
intends to continue its effort to increase the number of ports open to
foreign vessels. The Russian side also notes the Community's policy of
maintaining open to foreign vessels all ports open to international trade.
The Parties consider that the degree of openness of ports to foreign vessels
is an essential feature of an assessment of the conditions necessary for
the free supply of services in international maritime transport. They
therefore undertake to review the situation regarding ports open to foreign
vessels at least every two years through consultations to be held in the
framework of the Cooperation Council. If serious difficulties arise in
maintaining a port open to foreign vessels, the Party in whose territory
the port concerned is situated shall inform the other Party; at the request
of the latter, consultations shall be held so as to ensure that any action
taken affects as little as possible the free supply of international maritime
services.
Joint Declaration in relation to Article 39 (2) (c), second subparagraph
on vessels under a third flag
The Parties agree after the expiry of five years from the date of entry
into force of this Agreement to consider the possibility of application
of the provisions of Article 39 (2) (c), second subparagraph to vessels
under a third flag operated by shipping companies or nationals of a Member
State or Russia respectively.
Joint Declaration in relation to Article 44
For the purposes of this Agreement, an economic integration agreement
shall be an agreement in accordance with the principles set out in Article
V of the General Agreement on Trade in Services. In respect of any aspect
of this Agreement covering areas other than service activities an economic
integration agreement shall be an agreement in accordance with the principles
set out in Article XXIV of the GATT on the creation of free trade areas
or customs unions.
Joint Declaration in relation to Article 46 (2)
The Parties confirm their mutual understanding that the question of whether
activities are connected, even occasionally, with the exercise of official
authority in their respective territories, depends upon the circumstances
of each particular case. An examination, in each particular case, whether
such activities are connected with:
- the right to use physical constraint, or
- the exercise of judicial functions, or
- the right unilaterally to enact binding regulations,
will help to determine the answer to such questions.
Joint Declaration in relation to Article 48
The sole fact of requiring a visa for natural persons of certain Parties
and not for those of others shall not be regarded as nullifying or impairing
benefits under a specific commitment.
Joint Declaration in relation to Article 52 (definitions)
'Current payments`
'Current payments` are payments connected with the movement of goods,
services or persons made in accordance with normal international business
practice and do not cover arrangements which materially constitute a combination
of a current payment and a capital transaction, such as deferrals of payments
and advances which is meant to circumvent respective legislation of the
Parties in this field.
This definition does not preclude Russia from applying or enacting legislation
which lays down that such payments must be carried out through those Russian
banks which have received the respective licences from the Central Bank
of the Russian Federation to carry out such operations in freely convertible
currencies.
'Direct investment`
'Direct investment` is an investment for the purpose of establishing lasting
economic relations with an enterprise such as investments which give the
possibility of exercising an effective influence on the management thereof,
in the country concerned by non-residents or abroad by residents, by means
of:
1. creation or extension of a wholly owned enterprise, a subsidiary or
a branch, acquisition of full ownership of an existing enterprise;
2. participation in a new or existing enterprise;
3. a loan of five years or longer.
'Freely convertible currency`
'A freely convertible currency` is any currency considered as such by
the International Monetary Fund.
Joint Declaration in relation to Article 53, paragraph 2.2
'Primary products` are those defined as such in the GATT.
Joint Declaration in relation to Article 54
The Parties agree that for the purpose of the Agreement, intellectual,
industrial and commercial property includes in particular copyright, including
the copyright of computer programs, and neighbouring rights, patents,
industrial designs, geographical indications, including appellations of
origin, trade marks and service marks, topographies of integrated circuits
as well as protection against unfair competition as referred to in Article
10a of the Paris Convention for the protection of industrial property
and protection of undisclosed information on know-how.
Joint Declaration in relation to Article 99
The Parties agree that the measures provided for in Article 99 shall not
be taken with the aim to distort conditions of competition in relevant
markets and thus to afford protection to domestic production.
Joint Declaration in relation to Article 101
The Parties invite the Cooperation Council to examine forthwith the rules
of procedure that may be useful for dispute settlement under this Agreement.
Joint Declaration in relation to Article 107
The Parties agree, by common consent, for the purpose of its correct interpretation
and its practical application that the terms 'cases of special urgency`
included in Article 107 of the Agreement mean cases of material breach
of the Agreement by one of the Parties. A material breach of the Agreement
consists in:
(a) repudiation of the Agreement not sanctioned by the general rules of
international law; or
(b) violation of the essential element of the Agreement set out in Article
2.
Joint Declaration in relation to Article 107 (2)
The Parties agree that 'appropriate measures` referred to in Article 107
(2) are measures taken in accordance with international law.
If a Party takes a measure in a case of 'special urgency` as provided
for pursuant to Article 107 (2), the other Party may avail itself of the
procedures provided for in Article 101.
Joint Declaration in relation to Articles 2 and 107
The Parties declare that the inclusion in the Agreement of the reference
to the respect for human rights constituting an essential element of the
Agreement and to cases of special urgency flows from:
- the Community's policy in the area of human rights, in conformity with
the Declaration of the Council of 11 May 1992 which provides for the inclusion
of this reference in cooperation or association agreements between the
Community and its CSCE partners, as well as
- Russia's policy in this field, and
- the attachment of both Parties to the relevant obligations, arising
in particular from the Helsinki Final Act and the Charter of Paris for
a new Europe.
Joint Declaration in relation to Article 112
The Parties confirm that although the present Agreement replaces the Agreement
of 18 December 1989 regarding relations between the Parties, the Agreement
shall not prejudice or otherwise affect any measures taken before the
entry into force of this Agreement or agreements made between them before
that date in conformity with the 1989 Agreement and this upon the conditions
and for the period of application contained in such measures or agreements.
Joint Declaration in relation to Article 6 of Protocol 2
1. The Parties agree to take the necessary measures in order to assist
each other, as provided for in this Protocol and without delay, for the
following movements of goods:
(a) movement of arms, ammunition, explosives and explosive devices;
(b) movement of objects of art and antiquity, which present significant
historical, cultural or archaeological value for one of the Parties;
(c) movement of poisonous goods as well as the substances dangerous for
the environment and the public health;
(d) movement of sensitive and strategic goods subject to non-tariff limitations
in accordance with the lists agreed upon by the Parties.
2. The Parties agree, if permitted by the basic principles of their respective
legal systems, to take the necessary measures to allow the appropriate
use of the controlled delivery technique on the basis of mutually agreed
implementing provisions adopted by them in accordance with the procedures
of this Protocol.
3. The Parties agree to take all necessary measures, in accordance with
their respective legislation, in order:
- to deliver all documents,
- to notify all decisions,
falling within the scope of this Protocol to an addressee, residing or
established in their respective territories on the basis of mutually agreed
implementing provisions adopted by them in accordance with the procedures
of this Protocol. In such a case Article 5 (3) is applicable.
4. The Parties agree that when the requested authority cannot act on its
own, the administrative department to which the request has been addressed
by this authority shall proceed under the same conditions applicable to
the requested authority.
EXCHANGE OF LETTERS in relation to Article 22
A. Letter from Russia
Sir,
The purpose of this letter is to confirm that with regard to trade in
nuclear materials as covered by Article 22 of the Agreement on Partnership
and Cooperation signed today, we have reached the following understanding:
Russia intends to act as a stable, reliable and long-term supplier of
nuclear materials to the Community and the Community recognizes that intention.
The Russian Government takes note that the Community considers Russia,
in particular for the purposes of its supply policy in the nuclear field,
as a source of supply which is separate and distinct from other suppliers.
In order to avoid any difficulties in trade, consultations shall be held
regularly or on request on developments in the trade of nuclear materials
between Russia and the Community. These consultations could include a
continuous and regular dialogue on market developments and forecasts.
The consultations shall be held within the framework of Article 92.
As provided in Article 13 of the Agreement on Partnership and Cooperation
the regulations referred to in Article 6 of the 1989 Agreement will be
implemented in a uniform, impartial and equitable manner.
I refer to our common desire to facilitate by all practicable means the
process of nuclear disarmament underway. We have agreed to take all necessary
steps to conduct consultations with all countries concerned, if it appears
that the implementation of respective bi- and multilateral agreements
causes or threatens to cause substantial injury to the facilities of the
Parties.
I propose that this letter and your reply will establish a formal agreement
between us.
Please accept, Sir, the assurance of my highest consideration.
For the Government of the Russian Federation
B. Letter from the Community
Sir,
Thank you for your letter of today's date which reads as follows:
'The purpose of this letter is to confirm that with regard to trade in
nuclear materials as covered by Article 22 of the Agreement on Partnership
and Cooperation signed today, we have reached the following understanding:
Russia intends to act as a stable, reliable and long-term supplier of
nuclear materials to the Community and the Community recognizes that intention.
The Russian Government takes note that the Community considers Russia,
in particular for the purposes of its supply policy in the nuclear field,
as a source of supply which is separate and distinct from other suppliers.
In order to avoid any difficulties in trade, consultations shall be held
regularly or on request on developments in the trade of nuclear materials
between Russia and the Community. These consultations could include a
continuous and regular dialogue on market developments and forecasts.
The consultations shall be held within the framework of Article 92.
As provided in Article 13 of the Agreement on Partnership and Cooperation
the regulations referred to in Article 6 of the 1989 Agreement will be
implemented in a uniform, impartial and equitable manner.
I refer to our common desire to facilitate by all practicable means the
process of nuclear disarmament underway. We have agreed to take all necessary
steps to conduct consultations with all countries concerned, if it appears
that the implementation of respective bi- and multilateral agreements
causes or threatens to cause substantial injury to the facilities of the
Parties.
I propose that this letter and your reply will establish a formal agreement
between us.`
I confirm that your letter and my reply establish a formal agreement between
us.
Please accept, Sir, the assurance of my highest consideration.
On behalf of the European Communities
EXCHANGE OF LETTERS in relation to Article 52
A. Letter from Russia
Sir,
With reference to Article 52 of the Agreement on Partnership and Cooperation,
I confirm that nothing in this Article shall be construed as restricting
the transfer abroad by Community residents of investments made in Russia
by Community residents, including any compensation payments arising from
measures such as expropriation, nationalization or measures of equivalent
effect and of any profit stemming therefrom.
I propose that this letter and your reply will establish a formal agreement
between us.
Please accept, Sir, the assurance of my highest consideration.
For the Government of the Russian Federation
B. Letter from the Community
Sir,
Thank you for your letter of today's date which reads as follows:
'With reference to Article 52 of the Agreement on Partnership and Cooperation,
I confirm that nothing in this Article shall be construed as restricting
the transfer abroad by Community residents of investments made in Russia
by Community residents, including any compensation payments arising from
measures such as expropriation, nationalization or measures of equivalent
effect and of any profit stemming therefrom.
I propose that this letter and your reply will establish a formal agreement
between us.`
I confirm that your letter and my reply establish a formal agreement between
us.
Please accept, Sir, the assurance of my highest consideration.
On behalf of the European Communities
Community Declaration in relation to Article 36
The Community declares that the cross-border supply of services as referred
to in Article 36 does not imply the movement of the service supplier into
the territory of the country where the service is destined, nor the movement
of the recipient of the service into the territory of the country from
which the service comes.
Community Declaration in relation to Article 54
The provisions of the Agreement are without prejudice to the competences
of the European Community and its Member States in matters of intellectual,
industrial and commercial property.
Declaration by Russia in relation to Article 36
Russia declares that the suppliers in the Community Declaration in relation
to Article 36 could not be considered as natural persons, who are representatives
of a Community or Russian company and are seeking temporary entry for
the purpose of negotiating the sales of cross-border services or entering
into agreements to sell cross-border services for that company.
Minutes of signing of the Agreement on Partnership and Cooperation establishing
a partnership between the European Communities and their Member States,
of the one part, and the Russian Federation, of the other part
The plenipotentiaries of the Kingdom of Belgium, the Kingdom of Denmark,
the Federal Republic of Germany, the Hellenic Republic, the Kingdom of
Spain, the French Republic, Ireland, the Italian Republic, the Grand Duchy
of Luxembourg, the Kingdom of the Netherlands, the Portuguese Republic,
the United Kingdom of Great Britain and Northern Ireland, the European
Community, the European Coal and Steel Community and the European Atomic
Energy Community, and the plenipotentiaries of the Russian Federation
signed the Agreement on Partnership and Cooperation between the European
Communities and their Member States, of the one part, and the Russian
Federation, of the other part, on 24 June 1994 in Corfu.
On that occasion, the French Republic made the following Declaration:
'The French Republic notes that the Agreement on Partnership and Cooperation
with the Russian Federation does not apply to the overseas countries and
territories associated with the European Community pursuant to the Treaty
establishing the European Community.`
This Declaration has been brought to the attention of the Russian Federation,
which raised no objections.
These Minutes will be published in the Official Journal of the European
Communities.
Where such cooperation takes the form of activities involving education
and/or training, it should be carried out in accordance with the provisions
of Article 63.
In carrying out such cooperation activities, special attention shall be
devoted to the redeployment of scientists, engineers, researchers and
technicians who are or have been engaged in research on/and production
of weapons of mass destruction.
3. Such cooperation shall be implemented according to specific arrangements
to be negotiated and concluded in accordance with the procedures adopted
by each Party, and which shall set out, inter alia, appropriate IPR provisions.
End of the document
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