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            AGREEMENT         

between the European Atomic Energy Community and the Cabinet of Ministers of Ukraine for Co-operation in the Peaceful Uses of Nuclear Energy

The EUROPEAN ATOMIC ENERGY COMMUNITY (Euratom), hereinafter referred to as ‘the Community’,

and the CABINET OF MINISTERS OF UKRAINE,

both also generally referred to hereinafter as the ‘Party’ or ‘Parties’, as appropriate.

MINDFUL that the Partnership and Co-operation Agreement between the European Communities and their Member States and Ukraine (hereinafter referred to as ‘Partnership and Co-operation Agreement’), which entered into force on 1 March 1998, establishes that the Parties shall co-operate in the civil nuclear sector on the basis of specific agreements to be concluded between the Parties,

WHEREAS all Member States of the Community and Ukraine are Parties to the Treaty on the Non-Proliferation of Nuclear Weapons, hereinafter referred to as ‘the Non-Proliferation Treaty’,

WHEREAS the Community, its Member States and Ukraine are committed to ensuring that the research, development and use of nuclear energy for peaceful purposes are carried out in a manner consistent with the objectives of the Non-Proliferation Treaty,

WHEREAS safeguards are applied in the Community both under Chapter 7 of the Treaty Establishing the European Atomic Energy Community (hereinafter referred to as ‘Euratom Treaty’) and under safeguards agreements concluded between the Community, its Member States and the International Atomic Energy Agency, hereinafter referred to as ‘the IAEA’,

WHEREAS safeguards are applied in Ukraine according to the Agreement between Ukraine and the International Atomic Energy Agency for the Application of Safeguards in Connection with the Treaty on the Non-Proliferation of Nuclear Weapons,

WHEREAS the Community, its Member States and Ukraine reaffirm their support of the IAEA and of its strengthened safeguards system,

WHEREAS it is appropriate to strengthen the basis for co-operation between the Parties in the civil nuclear sector by a framework agreement,

HAVE AGREED AS FOLLOWS:

Article 1

Definitions

For the purpose of this Agreement:

or such other authority as the Party concerned may at any time notify to the other Party.

Article 2

Objective

The objective of this Agreement is to provide a framework for co-operation between the Parties in the peaceful uses of nuclear energy with a view to strengthening the overall co-operation relationship between the Community and Ukraine on the basis of mutual benefit and reciprocity and without prejudice to the respective powers of each Party.

Article 3

Scope of co-operation

1.   The Parties may co-operate in the way as specified in Articles 4 to 8 of this Agreement below in the peaceful uses of nuclear energy in the following areas:

2.   The co-operation referred to in this Article, as between the Parties, may also take place between persons and undertakings established in the Community and Ukraine.

Article 4

Nuclear safety

The co-operation in the field of nuclear safety shall be implemented according to the Agreement for Co-operation between the European Atomic Energy Community and the Cabinet of Ministers of Ukraine in the Field of Nuclear Safety, which entered into force on 13 November 2002.

Article 5

Controlled nuclear fusion

The co-operation in the field of controlled nuclear fusion shall be implemented according to the Agreement for Co-operation between the European Atomic Energy Community and the Cabinet of Ministers of Ukraine in the Field of Controlled Nuclear Fusion, which entered into force on 13 November 2002.

Article 6

Other areas of nuclear research and development

1.   Co-operation shall extend to nuclear research and development activities of mutual interest to the Parties other than those been provided for in Articles 4 and 5 of this Agreement above, as agreed between the Parties, in so far as they are covered by respective research and development activities undertaken by the Parties.

2.   On the Community side, the co-operation may include in particular the following areas:

3.   The co-operation shall be implemented in particular through:

4.   To the extent necessary, the scope, terms and conditions for co-operation in concrete projects will be laid down in implementing arrangements, entered into by the Parties acting through their competent institutions which will proceed according to their respective legislative and regulatory requirements.

5.   Such implementing arrangements may, inter alia, cover financing provisions, assignment of management responsibilities and detailed provisions on dissemination of information and intellectual property rights.

6.   Costs resulting from co-operation activities shall be borne by the Party that incurs them, unless otherwise specifically agreed by the Parties.

Article 7

International transfers, trade in nuclear materials and provision of relevant services

1.   Nuclear material transferred between the Parties, whether directly or through a third country, shall become subject to this Agreement upon its entry into the territorial jurisdiction of the receiving Party, provided that the supplying Party has notified the receiving Party in writing prior to, or at the time of, shipment, (in accordance with procedures defined in an Administrative Arrangement to be established by the appropriate authorities of the Parties).

2.   Nuclear material referred to in paragraph 1 of this Article shall remain subject to the provisions of this Agreement until:

3.   Any nuclear transfers carried out pursuant to the co-operation activities shall be made in accordance with the relevant international and multilateral commitments of the Parties and of the Member States of the European Union in relation to peaceful uses of nuclear energy as listed in paragraph 6 of this Article.

4.   Trade in nuclear materials and provision of relevant services between the Parties shall be carried out at market-related prices.

5.   The Parties shall try to avoid conflict situations requiring commercial safeguard measures in their mutual trade in nuclear materials. If problems nevertheless arise in their mutual trade in nuclear materials which would seriously jeopardise the viability of the nuclear industry, including uranium mining, of the Community or Ukraine, either Party may request consultations which shall be held as soon as possible in the framework of an ad hoc Committee.

If no mutually acceptable solution to these problems can be found in the consultations, the Party having requested the consultations may take the appropriate commercial safeguard measures to solve them or mitigate their effects in accordance with its internal legislation and with the relevant principles of international law.

The implementation of the first and second provisions of this paragraph above shall be without prejudice to the Euratom Treaty and secondary legislation thereunder.

6.   Transfers of nuclear material shall be subject to the following conditions:

7.   The Parties shall facilitate trade in nuclear materials between themselves or between persons or undertakings established in the respective territories of the Parties in the mutual interest of producers, the nuclear fuel cycle industry, utilities and consumers.

Authorisations, including export and import licences as well as authorisations or consents to third parties, relating to trade, industrial operations or nuclear material movements on the territories of the Parties shall not be used to restrict trade or hinder the commercial interests of either Party on the peaceful use of nuclear energy both internationally and domestically. The relevant authority shall act upon applications for such authorisations as soon as possible after submission and without unreasonable expense. Appropriate administrative provisions shall be in place to ensure respect of this provision.

Provisions of this Agreement shall not be used to impede the free movement of nuclear material within the territory of the Community.

8.   Notwithstanding the suspension or termination of this Agreement for any reason, subparagraphs (a) and (b) of paragraph 6 of this Article shall continue to apply so long as any nuclear material subject to these provisions remains under the jurisdiction of either Party or until a determination is made in accordance with paragraph 2 of this Article.

Article 8

Prevention of illicit trafficking of nuclear material

Co-operation in the field of prevention of illicit trafficking of nuclear material shall relate to the promotion of methods and techniques of control of nuclear material.

Article 9

Other areas of mutual interest

1.   The Parties may agree within the scope of their respective competencies to co-operation in other activities in the field of nuclear energy.

2.   On the Community’s side, the activities would have to be covered by relevant programmes of action and correspond to the conditions specified for it, e.g. in areas such as the safe transport of nuclear material, safeguards or industrial co-operation to promote certain aspects of the safety of nuclear installations.

3.   The paragraphs 4, 5 and 6 of Article 6 of this Agreement are equally applicable.

Article 10

Applicable law

Co-operation under this Agreement shall be in accordance with the laws and regulations in force within the Community and Ukraine as well as with the international agreements entered into by the Parties. In the case of the Community the applicable law includes the Euratom Treaty and secondary legislation thereunder.

Article 11

Intellectual property

The utilisation and diffusion of information and intellectual property rights, patents and copyrights connected with the co-operation activities under this Agreement shall be in accordance with the Annexes to the Agreements for Co-operation between the European Atomic Energy Community and the Cabinet of Ministers of Ukraine in the Field of Nuclear Safety and Controlled Nuclear Fusion as referred to above in Articles 4 and 5 of this Agreement, respectively.

Article 12

Consultation and arbitration

1.   The Parties will hold regular consultations within the framework of the Partnership and Co-operation Agreement to monitor the co-operation under this Agreement unless specific consultation mechanisms are foreseen by the Parties.

2.   Any dispute relating to the application or interpretation of this Agreement may be dealt with according to the procedure established by Article 96 of the Partnership and Co-operation Agreement.

Article 13

Entry into force and duration

1.   The Agreement shall enter into force on the date the Parties, through an exchange of diplomatic notes, specify its entry into force (1) and shall remain in force for an initial period of five years.

2.   Thereafter this Agreement shall be automatically renewed for five-year periods, unless either Party, by written notice, requests the termination or renegotiations of the Agreement not later than six months prior to the expiry date.

3.   If either Party or any Member State of the Community violates any of the material provisions of this Agreement, the other Party may, on giving written notice to that effect, suspend or terminate co-operation under this Agreement in whole or in part.

Before either Party takes action to that effect the Parties shall consult with a view to reaching agreement on the corrective measures to be taken and on the time-scale within which such measures shall be taken.

Action under the first provision of this paragraph shall be taken only if there has been failure to take the agreed measures within the agreed time or, in the event of failure to reach agreement as provided in the foregoing paragraph, after the lapse of a reasonable period of time having regard to the nature and gravity of the violation.

This Agreement shall be drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, Greek, Italian, Portuguese, Spanish, Swedish and Ukrainian languages, each text being equally authentic.

Done at Kiev, 28 April 2005.

For the European Atomic Energy Community

Andris PIEBALGS            

For the Cabinet of Ministers of Ukraine

Ivan PLACHKOV            

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(1)              1.9.2006.

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