This law is an Agreement on Partnership and Cooperation between the European Communities and their Member States, and…

21997A1128(01) 21997A1128(01) 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 Dates: of document: 24/06/1994 of effect: 01/12/1997; Entry into force See Art 112 ; See OJ L 327/97 P. 1 of signature: 24/06/1994; Corfu end of validity: 99/99/9999 Authentic language: The official languages ; German ; English ;

Danish ; Spanish ; French ; Greek ; Italian ; Dutch ; Portuguese ;

Swedish ; Finnish ; Other than Community language ; Russian Author:

European Community ; European Coal and Steel Community ; European Atomic Energy Community ; The 12 Member States ; Belgium ; Denmark ;

Federal Republic of Germany ; Greece ; Spain ; France ; Ireland ;

Italy ; Luxembourg ; Netherlands ; Portugal ; United Kingdom ;

Russian Federation Subject matter: External relations ; Cooperation ; Provisions under

Article 235EEC ; Provisions implementing Article 95 - ECSC

Directory code: 11401030 EUROVOC descriptor: EAEC ; EC cooperation agreement ; ECSC ; Russia Legal basis:

151K095................... Adoption 157A101-L2................ Adoption 192E054-P2................ Adoption 192E057-P2F3.............. Adoption 192E066................... Adoption 192E073C-P2............... Adoption 192E075................... Adoption 192E084-P2................ Adoption 192E099................... Adoption 192E100................... Adoption 192E113................... Adoption 192E228-P2F2.............. Adoption 192E228-P3L2.............. Adoption 192E235................... Adoption Instruments cited:

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Amendment to:

290A0315(01)...... Replacement... DP1/12/97 Amended by:

Adopted by.... 397D0800..........

Relation...... 200A1109(01)......

Amended by.... 204A0115(01)...... Replacement ANN 1 from 26/12/2003 Amended by.... 204A0115(01)...... Replacement ANN 2 from 26/12/2003 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 1A 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:

TITLE I GENERAL PRINCIPLES

Article 2Respect 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 3The 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 51. 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.

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 6A 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:

The economic convergence achieved through this Agreement will lead to more intense political relations,

Article 71. 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.

Article 8Other procedures and mechanisms for political dialogue shall be set

up by the Parties and in particular in the following forms:

Article 9Political 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 101. The Parties shall accord to one another the general

most-favoured-nation treatment described in Article I, paragraph 1 of the GATT.

Article 111. 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.

Article 121. 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.

Article 13The following Articles of the GATT shall be applicable mutatis

mutandis between the Parties:

Article 14Without 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 151. 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.

Article 16Until 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 171. 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.

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.

Article 18Nothing 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 19The 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 20This 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 211. Trade in products covered by the Treaty establishing the European

Coal and Steel Community shall be governed by:

Article 22Trade in nuclear materials

TITLE IV PROVISIONS ON BUSINESS AND INVESTMENT

CHAPTER I LABOUR CONDITIONS

Article 231. 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.

Article 24Coordination of social security

The Parties shall conclude agreements in order:

Article 25The 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 26The 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 27The 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 281. 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.

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 29The 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.

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.

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.

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.

Article 30For 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 31Notwithstanding 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 321. 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.

Article 33The 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 341. 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.

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.

Article 51The situations covered by such Article 51 shall be

solely governed by its provisions to the exclusion of any other.

Article 351. Article 28 shall not apply to air transport, inland waterways

transport and maritime transport.

CHAPTER III CROSS-BORDER SUPPLY OF SERVICES

Article 36For 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 37Subject 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 381. 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.

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.

Article 51The situations covered by such Article 51 shall be

solely governed by its provisions to the exclusion of any other.

Article 391. 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.

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.

Article 40For 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:

Article 41Cooperation 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 42The 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 43With 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 44For 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 45Companies 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 461. The provisions of this Title shall be applied subject to

limitations justified on grounds of public policy, public security or public health.

Article 47The 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 48For 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 491. 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.

Article 50Without prejudice to Articles 32 and 37, no provision of Chapters

II, III and IV hereof shall be interpreted as giving the right to:

Article 51

TITLE V PAYMENTS AND CAPITAL

Article 521. 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.

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.

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.

TITLE VI COMPETITION; INTELLECTUAL, INDUSTRIAL AND COMMERCIAL

PROPERTY PROTECTION; LEGISLATIVE COOPERATION

Article 53Competition

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.

Article 54Intellectual, 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.

Article 90If 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 55Legislative cooperation

TITLE VII ECONOMIC COOPERATION

Article 561. 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.

Special attention shall be devoted by the Parties to measures capable of fostering cooperation with the other countries of the former USSR.

Article 57Industrial cooperation

Article 58Investment promotion and protection

Article 59Public procurement

The Parties shall cooperate to develop conditions for open and competitive award of public procurement contracts in particular through calls for tenders.

Article 60Standards and conformity assessment; consumer protection

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.

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 61Mining and raw materials

Article 62Science and technology

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.

Article 63Education and training

Article 64Agriculture 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 65Energy

Article 66Nuclear 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 67Space

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 68Construction

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 69Environment

Article 70Transport

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:

Article 71Postal services and telecommunications

Article 72Financial 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:

Article 73Regional 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 74Social cooperation

The cooperation shall include notably:

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 75Tourism

The Parties shall increase and develop cooperation between them, which shall include:

Article 76Small and medium-sized enterprises

The Parties shall closely cooperate with a view to ensuring that the necessary conditions for access to the networks are met.

Article 77Communication, informatics and information infrastructure

Article 78Customs

Technical assistance shall be provided where necessary.

Article 79Statistical cooperation

Article 80Economics

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:

Article 81Money laundering

Article 82Drugs

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 83Cooperation 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:

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 84The Parties shall establish cooperation aimed at preventing illegal

activities such as:

The cooperation in the abovementioned areas will be based on mutual consultations and close interactions and will provide technical and administrative assistance including:

TITLE IX CULTURAL COOPERATION

Article 851. 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.

TITLE X FINANCIAL COOPERATION

Article 86In 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 87This financial assistance shall be covered within the framework of

the Tacis programme foreseen in the Community's relevant Council Regulation.

Article 88The 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 89In 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 90A 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 911. 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.

Article 921. 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.

Article 93The 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 94When 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 95A Parliamentary Cooperation Committee is hereby established. It

shall meet at intervals which it shall itself determine.

Article 961. 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.

Article 97The 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 981. 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.

Article 99Nothing in this Agreement shall prevent a Party from taking any

measures:

Article 1001. In the fields covered by this Agreement and without prejudice to

any special provisions contained therein:

Article 1011. Each of the Parties may refer to the Cooperation Council any

dispute relating to the application or interpretation of this Agreement.

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.

Article 102The 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 103Treatment granted to Russia hereunder shall in no case be more

favourable than that granted by the Member States to each other.

Article 104For 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 105In 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 106This 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 1071. 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.

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 108Annexes 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 109This 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 110This 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 112This 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.

Hecho en CorfŪ, el veinticuatro de junio de mil novecientos noventa y cuatro.

Udfördiget i Corfu den fireogtyvende juni nitten hundrede og fireoghalvfems.

Geschehen zu Korfu am vierundzwanzigsten Juni neunzehnhundertvierundneunzig. øółżõ ėĮ÷ż Źąęśįęń, ėĮłĖ õčś˙ėł ĮąėėõęłĖ É˙įżč˙į ščūłń õżżłńśŽėłń õżõżČżĮń Įąėėõęń.

Done at Corfu on the twenty-fourth day of June in the year one thousand nine hundred and ninety-four.

Fait š Corfou, le vingt-quatre juin mil neuf cent quatre-vingt-quatorze.

Fatto a Corfų, addü ventiquattro giugno millenovecentonovantaquattro.

Gedaan te Korfoe, de vierentwintigste juni negentienhonderd vierennegentig.

Feito em Corfu, em vinte e quatro de Junho de mil novecentos e noventa e quatro. >REFERENCE TO A GRAPHIC> Pour le Royaume de Belgique Voor het Koninkrijk Belgiū FŽr das KŠnigreich Belgien >REFERENCE TO A GRAPHIC> Põ Kongeriget Danmarks vegne >REFERENCE TO A GRAPHIC> FŽr die Bundesrepublik Deutschland >REFERENCE TO A GRAPHIC> Ćłń Į÷ż Åūū÷żłśČ Ä÷ü˙śęńĮčń >REFERENCE TO A GRAPHIC> Por el Reino de Espaęa >REFERENCE TO A GRAPHIC> Pour la Rłpublique fran÷aise >REFERENCE TO A GRAPHIC> Thar cheann Na hÉireann For Ireland >REFERENCE TO A GRAPHIC> Per la Repubblica italiana >REFERENCE TO A GRAPHIC> Pour le Grand-Duchł de Luxembourg >REFERENCE TO A GRAPHIC> Voor het Koninkrijk der Nederlanden >REFERENCE TO A GRAPHIC> Pela RepŪblica Portuguesa >REFERENCE TO A GRAPHIC> For the United Kingdom of Great Britain and Northern Ireland >REFERENCE TO A GRAPHIC> Por las Comunidades Europeas For De Europöiske Föllesskaber FŽr die Europōischen Gemeinschaften Ćłń ĮłĖ ÅįęųĘńŪśąĖ Ź˙łżŽĮ÷ĮõĖ For the European Communities Pour les Communautłs europłennes Per le Comunitš europee Voor de Europese Gemeenschappen Pelas Comunidades Europeias >REFERENCE TO A GRAPHIC> >REFERENCE TO A GRAPHIC> 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:

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.

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.

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.

Fishing Authorization from the respective governmental body is necessary for fishing.

Real estate (immovable property) purchase and brokerage