COMMISSION OF THE EUROPEAN COMMUNITIES 
Brussels, 29.10.1997 
COM(97) 557 final 
97/0294 (AVC) 
97/0295 (AVC) 
Proposal for a 
COUNCIL AND COMMISSION DECISION 
on the conclusion of the Partnership and Cooperation Agreement 
between the European Communities 
and their Member States, of the one part, 
and the Russian Federation, of the other part 
Proposal for a 
COUNCIL AND COMMISSION DECISION 
on the conclusion of a Protocol to the Partnership and Cooperation Agreement 
between the European Communities and their Member States, of the one part, 
and the Russian Federation, of the other part 
(presented by the Commission) 

Explanatory memorandum 
The Partnership and Cooperation Agreement between the European Communities 
and their Member States and the Russian Federation signed the 24 June 1994 
takes the Agreement on trade and commercial and economic cooperation 
concluded by the EEC and Euratom with the Soviet Union on 18 December 1989 
a step further for the Communities. 
The PCA is based on the Treaty establishing the European Coal and Steel 
Community, the Treaty establishing the European Community, and in particular 
Article 54 (2), the last sentence of Article 57 (2), and Articles 66, 73 c (2), 75, 
84 (2), 99, 100, 113 and 235, in conjunction with Article 228 ( 2) and the 
second subparagraph of Article 228 (3) thereof, and the Treaty establishing the 
European Atomic Energy Community, and in particular the second paragraph of 
Article 101 thereof. 
Whereas there three new Merfiber States have to be added to the list of 
contracting Parties and the list of signatories and authentic texts of the 
Agreements, its Annexes and Protocols, the Final Act and all documents 
annexed to it, have to be established in Finnish and Swedish. 
2. A need arose for a protocol to the text of the Agreement signed on 24 June 1994. 
3. The accession to the European Union and thereby to the Eurpean Community of 
Austria, Finland and Sweden on 1 January 1995 means these three new Member 
States have to be added to the list of contracting parties and the list of signatories. 
4. ^ In light of the above, the Commission proposes that the Council adopt the 
annexed Decision. 
_ A-
COUNCIL AND COMMISSION DECISION 
of 
on the conclusion of the Partnership and Cooperation Agreement ^ r jo W 4 ^Al/CJ 
between the European Communities 
and their Member States, of the one part, 
and the Russian Federation, of the other part 
THE COUNCIL OF THE EUROPEAN UNION, 
THE COMMISSION OF THE EUROPEAN COMMUNITIES, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 54(2), the last sentence of Article 57(2), and Articles 66, 73c(2), 75, 84(2), 99, 100, 
113 and 235, in conjunction with the second sentence of Article 228(2) and the second 
subparagraph of Article 228(3) thereof, 
Having regard to the Treaty establishing the European Coal and Steel Community, and in 
particular Article 95 thereof, 
Having regard to the Treaty establishing the European Atomic Energy Community, and in 
particular the second paragraph of Article 101 thereof, 
- A(^LA _ 
Having regard to the assent of the European Parliament C), 
Having consulted the ECSC Consultative Committee and with the assent of the Council, 
Having regard to the approval of the Council given in accordance with Article 101 of the 
Treaty establishing the European Atomic Energy Community, 
Whereas conclusion of the Partnership and Cooperation Agreement between the European 
Communities and their Member States, of the one part, and the Russian Federation, of the 
other, signed on 24 June 1994 in Corfu, will contribute to the achievement of the objectives 
of the European Communities; 
Whereas the purpose of that Agreement is to strengthen the links established 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 and approved by 
Decision 90/116/EEC (1); 
Whereas certain obligations, provided for by the Partnership and Cooperation Agreement 
outside the scope of Community trade policy, affect or are likely to affect the arrangements 
laid down by Community acts adopted in the areas of the right of establishment, transport 
and the treatment of enterprises; 
Whereas the said Agreement imposes on the European Community certain obligations 
regarding capital movements and payments between the Community and Russia; 
C) OJ No C 339, 18.12.1995, p. 45. 
(2) OJ No L 68, 15. 3.1990, p. 1. 
-MC-
Whereas, in addition, insofar as the said Agreement affects Council Directive 90/434/EEC of 
23 July 1990 on the common system of taxation applicable to mergers, divisions, transfers of 
assets and exchanges of shares concerning companies of different Member States (1), and 
Council Directive 90/435/EEC of 23 July 1 990 on the common system of taxation applicable 
in the case of parent companies and subsidiaries of different Member States (1), which are 
based on Article 100 of the Treaty establishing the European Community, that Article should 
be used as a legal basis; 
Whereas certain provisions of the said Agreement impose on the Community obligations in the 
field of the provision of services which go beyond the crossborder framework; 
Whereas certain provisions of the said Agreement which are to be implemented by the 
Community, the Treaty establishing the European Community makes no provision for specific 
powers; whereas it is therefore necessary to resort to Article 235 of the Treaty, 
HAVE DECIDED AS FOLLOWS: 
Article 1 
The Partnership and Cooperation Agreement between the European Communities and their 
Member States, of the one part, and the Russian Federation, of the other part, together with 
the protocols and declarations, are hereby approved on behalf of the European Community, 
the European Coal and Steel Community and the European Atomic Energy Community. 
The texts are annexed to this Decision. 
(3) OJ No L 225, 20.8.1990, p. 1. 
(4) OJ No L 225, 20.8.1990, p. 6. 
— Ad -
Article 2 
1. The position to be adopted by the Community in the Cooperation Council and the 
Cooperation Committee shall be determined by the Council, on a proposal from the 
Commission, or, where appropriate, by the Commission, in each case in accordance with the 
relevant provisions of the Treaties establishing the European Community, the European Coal 
and Steel Community and the European Atomic Energy Community. 
2. In accordance with Article 91 of the Partnership and Cooperation Agreement, the 
President of the Council shall chair the Cooperation Council and shall present the 
Community's position. A representative of the Commission shall chair the Cooperation 
Committee in accordance with its rules of procedure and shall present the Community's 
position. 
3. The decision to publish the recommendations of the Cooperation Council and the 
Cooperation Committee in the Official Journal of the European Communities shall be taken on 
a case-by-case basis by the Council and the Commission. 
Article 3 
The President of the Council shall give the notification provided for in Article 112 of the 
Agreement on behalf of the European Community. The President of the Commission shall 
give such notification on behalf of the European Coal and Steel Community and the European 
Atomic Energy Community. 
Done at Brussels, 
For the Commission For the Council 
The President The President 
~ At -
COUNCIL AND COMMISSION DECISION O^ J c%<l £ ($V^-] 
of 
on the conclusion of a Protocol to the Partnership and Cooperation Agreement 
between the European Communities and their Member States, of the one part, 
and the Russian Federation, of the other part 
THE COUNCIL OF THE EUROPEAN UNION, 
THE EUROPEAN COMMISSION, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 54(2), the last sentence of Article 57(2), and Articles 66, 73c(2), 75, 84(2), 99, 100, 
113 and 235, in conjunction with the second sentence of Article 228(2) and the second 
subparagraph of Article 228(3) thereof, 
Having regard to the Treaty establishing the European Coal and Steel Community, and in 
particular Article 95 thereof, 
Having regard to the Treaty establishing the European Atomic Energy Community, and in 
particular the second paragraph of Article 101 thereof, 
- A e 
Having regard to the assent of the European Parliament C), 
Having consulted the ECSC Consultative Committee and the Economic and Social Committee, 
and with the assent of the Council, 
Having regard to the approval of the Council given in accordance with Article 101 of the 
Treaty establishing the European Atomic Energy Community, 
Whereas the Republic of Austria, the Kingdom of Sweden and the Republic of Finland acceded 
to the European Union, and thereby to the Communities on 1 January 1995; 
Whereas these three new Member States have to be added to the list of Contracting Parties 
and to the list of signatories and whereas authentic texts of the Agreement, its Annexes and 
Protocols, the Final Act and all documents annexed to it, have to be established in Finnish and 
Swedish; 
Whereas conclusion of the Partnership and Cooperation Agreement between the European 
Communities and their Member States, of the one part, and the Russian Federation, of the 
other, signed on 24 June 1994 in Corfu, will contribute to the achievement of the objectives 
of the European Communities; 
Whereas the purpose of that Agreement is to strengthen the links established 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 and approved by 
Decision 90/116/EEC (1); 
Whereas certain obligations, provided for by the Partnership and Cooperation Agreement 
outside the scope of Community trade policy, affect or are likely to affect the arrangements 
laid down by Community acts adopted in the areas of the right of establishment, transport 
and the treatment of enterprises; 
(1) OJ No C 200, 30.6.1997, p. 1. 
(2) OJ No L 68, 15.3.1990, p. 1. 
A & 
Whereas the said Agreement imposes on the European Community certain obligations 
regarding capital movements and payments between the Community and Russia; 
Whereas, in addition, insofar as the said Agreement affects Council Directive 90/434/EEC of 
23 July 1990 on the common system of taxation applicable to mergers, divisions, transfers of 
assets and exchanges of shares concerning companies of different Member States C), and 
Council Directive 90/435/EEC of 23 July 1990 on the common system of taxation applicable 
in the case of parent companies and subsidiaries of different Member States (1), which are 
based on Article 100 of the Treaty establishing the European Community, that Article should 
be used as a legal basis; 
Whereas certain provisions of the said Agreement impose on the Community obligations in the 
field of the provision of services which go beyond the crossborder framework; 
Whereas certain provisions of the said Agreement which are to be implemented by the 
Community, the Treaty establishing the European Community makes no provision for specific 
powers; whereas it is therefore necessary to resort to Article 235 of the Treaty, 
HAVE DECIDED AS FOLLOWS: 
Article 1 
The Protocol to the Partnership and Cooperation Agreement between the European 
Communities and their Member States, of the one part, and the Russian Federation, of the 
other part, introducing the name of the three new Member States - Austria, Finland and 
Sweden - which joined the European Communities and therefore became Member States on 1 
January 1995, is hereby approved on behalf of the European Community, the European Coal 
and Steel Community, and the European Atomic Energy Community. 
(3) OJ No L225, 20.8.1990, p. 1. 
(4) OJ No L 225, 20.8.1990, p. 6. 
A H1 
The text of the Protocol and its Annexes are attached to this Decision. 
Article 2 
The President of the Council shall give the notification provided for in Article 112(2) of the 
Agreement on behalf of the European Community. The President of the Commission shall 
give such notification on behalf of the European Coal and Steel Community and the European 
Atomic Energy Community. 
Done at Brussels, 
For the Commission For the Council 
the President the President 
- A < -
PROTOCOL 
TO 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 
- ^-P/CE/RU/en 1 
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 REPUBLIC OF AUSTRIA, 
THE PORTUGUESE REPUBLIC, 
THE REPUBLIC OF FINLAND, 
THE KINGDOM OF SWEDEN, 
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND 
P/CE/RU/en 2 _ A K -
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 
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 
of the other part, 
Having regard to the accession of the Republic of Austria, the Republic of Finland and the 
Kingdom of Sweden to the European Union and thereby to the Community on 
1 January 1995, 
— Al - P/CE/RU/en 3 
HAVE AGREED AS FOLLOWS: 
ARTICLE 1 
The Republic of Austria, the Republic of Finland and the Kingdom of Sweden shall be Parties 
to 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, signed at Corfu on 24 June 1994, hereinafter the "Agreement", and shall 
respectively adopt and take note, in the same manner, as the other Member States of the 
Community, of the texts of the Agreement, as well as of the Joint Declarations, Exchanges of 
Letters, and Declaration by the Russian Federation annexed to the Final Act signed on the 
same date. 
ARTICLE 2 
The texts of the Agreement, the Final Act and all documents annexed to it are drawn up in 
the Finnish and Swedish languages. They are annexed to the Protocol and are equally 
authentic with the texts in the other languages in which the Agreement, the Final Act and the 
documents annexed to it are drawn up. 
~ Art — 
P/CE/RU/en 4 
ARTICLE 3 
This Protocol is drawn up in duplicate in the Danish, Dutch, English, Finnish, French, German, 
Greek, Italian, Portuguese, Spanish, Swedish and Russian languages, each of these texts 
being equally authentic. 
ARTICLE 4 
The Protocol will be approved by the Parties in accordance with their own procedures. 
This Protocol shall enter into force on the first day of the second month following the day on 
which the Parties notify each other of the completion of the procedures referred to in the first 
paragraph. 
— A h) _ P/CE/RU/en 5 
Done at Brussels on 
For the KINGDOM OF BELGIUM, 
For the KINGDOM OF DENMARK, 
For the FEDERAL REPUBLIC OF GERMANY, 
For the HELLENIC REPUBLIC, 
For the KINGDOM OF SPAIN, 
For the FRENCH REPUBLIC, 
For IRELAND, 
For the ITALIAN REPUBLIC, 
For the GRAND DUCHY OF LUXEMBOURG, 
For the KINGDOM OF THE NETHERLANDS, 
For the REPUBLIC OF AUSTRIA, 
For the PORTUGUESE REPUBLIC, 
For the REPUBLIC OF FINLAND, 
For the KINGDOM OF SWEDEN, 
For the UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND 
For the COMMUNITY 
For the RUSSIAN FEDERATION 
P/CE/RU/en 6 - £ 
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 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, 
CE/RU/en 1 
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; 
CE/RU't.i 3 
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 established 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; 
CE/RU/en 4 3 
CONVINCED of the paramount importance of the rule of law and respect for human rights, 
particularly those of minorities, the establishment of a multiparty 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; 
^ CE/RU/en 5 
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 complementarity of their activities in this area; 
DESIROUS of promoting cultural cooperation and improving the flow of information, 
HAVE AGREED AS FOLLOWS: 
CE/RU/en 6 5~ 
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. 
° Cb/RU/en 7 
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 de /elopment 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. 
CE/RU/en 8 7-
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; 
$ CE/RU/en 9 
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; 
CE/RU/en 10 _£J 
- 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 
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. 
^O CE/RU/en 11 
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. 
CE/RU/en 12 yfyf 
ARTICLE 13 
The following Articles of the GATT shall be applicable mutatis mutandis between the 
Parties: 
1) Article VII, paragraphs 1, 2, 3, 4a), 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. 
yJjL CE/RU/en 13 
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 of and of 
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. 
CE/RU/en 14 /<3 
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 
adopt 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 under 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. 
//<-/ CE/RU/en 15 
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 of 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 shallnot, however, constitute a means of 
arbitrary discrimination or a disguised restriction on trade between the Parties. 
CE/RU/en 16 /I S 
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 under 
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. 
/ft> CE/RU/en 17 
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)(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 Article 6 and Article 15(5) of the 1989 Agreement to "this Agreement" 
shall be read as meaning the regime established by paragraph 1 of this Article; 
CE/RU/en18 y •-
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 under 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. 
r CE/RU/en 19 
ARTICLE 24 
Co-ordination 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 co-ordination 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 resident 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. 
CE/RU/en 2i //<? 
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 Article 23 
and Article 26 of this Agreement. 
^O CE/RU/en 21 
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. 
CE/RU/en 22 JU 
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 under Article 28(1), with regard to establishment by means 
of the setting up of subsidiaries only and under 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 under 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. 
*££ CE/RU/en 23 
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. 
Cc/RU/en 24 ^J 
ARTICLE 30 
For the purposes 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. 
^ CE/RU/en 25 
(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. 
CE/RU/en 26 ^" 
With regard to international maritime transport, shall also be beneficiaries 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. 
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. 
JX. ?£ CE/RU/en 27 
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 above mentioned companies herein referred to as "organizations" 
are "intra-corporate transferees" as defined in (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. 
CE/RU/en 28 £1-
(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 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. 
£-Ç? CE/RU/en 29 
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. 
CE/RU/en 30 £°/ 
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 to 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; 
Oc> CE/RU/en 31 
(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 computerised 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. 
CE/RU/en 32 Jv 
ARTICLE 37 
Subject to the provisions of Article 48 of this Agreement, the Parties shalL permit for the 
sectors listed 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. Insofar 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 at 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 
3^ CE/RU/en 33 
- 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. 
CE/RU/en 34 o0 
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; 
O _JV CE/RU/en 35 
(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; 
CE/RU/en 36 JJ5"" 
- 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 transitional 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. 
~£ CE/RU/en 37 
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 
of this Title and those of Title V. 
CE/RU/en 38 31-
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. 
3? CE/RU/en 39 
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; 
CE/RU/en 40 3^ 
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, as 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 adaptions resulting therefrom for this Agreement. 
Qo CE/RU/en 41 
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. 
CE/RU/en 42 ,, 
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^hall be ensured. 
3. The provisions of paragraph 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. 
4^ CE/RU/en 43 
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 residents 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 the 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 Co-operation Council promptly of the introduction of such measures and of any 
changes therein. 
CE/RU/en 44 £/3 
8. The Parties shall consult each other with a view to facilitate 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 insofar 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. 
4^Y CE/RU/en 45 
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 insofar 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. 
CE/RU/en 46 is 
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); 
9ë CE/RU/en 47 
- 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. 
CE/RU/en48 L/^ 
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; 
L/ $ CE/RU/en 49 
- encouragement of a stable social and human résources 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. 
CE/RU/en 50 V? 
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 
the 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. 
S~C CE/RU/en 51 
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. 
CE/RU/en 52 S7 
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 above-mentioned areas with the relevant 
European and other international organisations. 
The Parties shall, in particular, encourage practical interaction of their respective 
organisations, with the aim of starting to negotiate mutual recognition agreements in the 
field of conformity assessment activities. 
2. The Parties shall enter in 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. 
S~£. CE/RU/en 53 
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). 
CE/RU/en 54 53 
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; 
CE/RU/en 55 
- 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. 
CE/RU/en 56 ss~: 
ARTICLE 64 
Agriculture and the agro-industrial sector 
Cooperation shall aim at the modernization, restructuring and privatisation 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 following 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; 
<- CE/RU/en 57 
- the introduction of the 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 minimise 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. 
CE/RU/en 58 S^ 
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 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. 
<-- <p CE/RU/en 59 
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; 
CE/RU/en 60 <^ 9 
- 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; 
4 ' 
- 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. 
QQ CE/RU/en 61 
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. 
CE/RU/en 62 £^ 
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; 
££ Ct/RU/en 63 
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 transeuropean telecommunications 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, 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 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; 
CE/RU/en 64 £3 
- 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. 
6 V CE/RU/en 65 
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 
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; 
CE/RU/en 66 Q. <f 
- 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. 
£g ; CE/RU/en 67 
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, 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. 
CE/RU/en 68 é~^-
ARTICLE 77 
Communication, informatics and information infrastructure 
1. The Parties shall support the development of modem 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. 
£% CE/RU/en 69 
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. 
CE/RU/en 70 6? 
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. 
*^ CE/RU/en 71 
ARTICLE 80 
Economies 
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. 
CE/RU/en 72 "7/ 
2. Co-operation 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 on 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. 
7^ CE/RU/en 73 
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; 
CE/RU/en 74 <f ^ 
- 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. 
74* CE/RU/en 75 
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. 
CE/RU/en 76 ~f<f 
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. 
~^~G CE/RU/en 77 
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. 
CE/RU/en 78 71/2-
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 committee 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. 
~^ff CE/RU/en 79 
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 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. 
CE/RU/en 80 7? 
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; 
C) XO CE/RU/en 81 
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 
CE/RU/en 32 g yf 
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 tax payers 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. 
XI CE/RU/en 83 
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 conciliator's 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. 
CE/RU/en 84 V 
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 
Insofar 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 ten 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. 
g/^ CE/RU/en 85 
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. 
Cc/RU/en 86 <9^ 
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 texts 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. 
*k CE/RU/en 87 
UST QF ANNEXES 
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) 
Annex 2 Derogations from Article 15 (quantitative restrictions) 
Annex 3 Community reservations in accordance with Article 28(2) 
Annex 4 Russian reservations in accordance with Article 28(3) 
Annex 5 Cross-border supply of services 
List of services for which the Parties shall grant most-favoured-nation treatment 
Annex 6 Definitions in relation to financial services 
Annex 7 Financial services 
Annex 8 Provisions in relation to Articles 34 and 38 
Annex 9 Transitional period for provisions on competition and for the introduction of 
quantitative restrictions 
Annex 10 Protection of Intellectual, Industrial and Commercial Property referred to in 
Article 54 
LIST OF 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 
L/CE/RU/en 1 
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 capital and current payments, 
access to securities, etc. 
CE/RU/Annex 1/en 1 
4. Price system regarding Russian export of some kinds of raw materials and 
semifinished 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 data bases. 
CE/RU/Annex 1 /en 2 a? 
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. 
CE/RU/Annex 2/en 1 
9o 
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 . 
CE/RU/Annex 2/en 2 9/ 
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 
4 * 
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. 
CE/RU/Annex 3/en 1 
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. 
CE/RU/Annex 3/en 2 
93 
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. 
CE/RU/Annex 4/en 1 
Cfy 
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. 
CE/RU/Annex 4/en 2 ^ _ 
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 
Data base 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 
CE/RU/Annex 5/en 1 
Telecommunications: 
Value added services including (but not limited to) Electronic Mail, Voice Mail, 
On-line information and Data base 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 
the cross-border movement. 
CE/RU/Annex 5/en 2 
(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 (b) MFN subject to Article 38 will be applied, without 
paragraph A of Annex 8. 
CE/RU/Annex 5/en 3 
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 transaction. 
3. Financial leasing. 
CE/RU/Annex 6/en 1 
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 under-writing 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. 
CE/RU/Annex 6/en 2 
/too 
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. 
CE/RU/Annex 6/en 3 
^1€yf 
ANNEX 7 
Financial Services 
A. In respect of banking services referred to in Annex 6, Part B, the 
most-favoured-nation treatment granted under 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 under 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; 
CE/RU/Annex 7/en 1 
(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; 
CE/RU/Annex 7/en 2 
(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. 
CE/RU/Annex 7/en 3 
stoV 
B. In respect of insurance services referred to in Annex 6, Part A, paragraphs 1 and 2 
the most-favoured-nation treatment granted under 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 5 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%. 
CE/RU/Annex 7/en 4 
ANNEX 9 
Provisions in relation to Articles 34 and 38 
Part A 
The consultations shall begin within thirty 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 
4 ' 
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 sixty 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. 
CE/RU/Annex 8/en 1 
/J 06 
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. 
CE/RU/Annex 8/en 2 
ANNEX 9 
Transitional period for provisions on competition and for 
the introduction of quantitative restrictions 
The circumstances mentioned in Article 53(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 
4 * 
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. 
CE/RU/Annex 9/en 1 
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. 
CE/RU/Annex 10/en 1 
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. 
CE/RiJ/Anr.py 10/on ? 
PROTOCOL 1 
ON THE ESTABLISHMENT OF 
A COAL AND STEEL CONTACT GROUP 
P 1/CE/RU/en 1 
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. 
P1/CE/RU/en 2 A ,„ 
PROTOCOL 2 
ON MUTUAL ADMINISTRATIVE ASSISTANCE 
FOR THE CORRECT APPLICATION OF 
CUSTOMS LEGISLATION 
P 2/CE/RU/en 1 
ARTICLE 1 
Definitions 
For the purposes of this Rrotocol: 
(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. 
P 2/CE/RU/en 2 
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. 
P 2/CE/RU/en 3 
A\J± 
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. 
P 2/CE/RU/en 4 
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; 
P 2/CE/RU/en 5 
(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. 
P 2/CE/RU/en 6 
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. 
P 2/CE/RU/en 7 
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. 
P 2/CE/RU/en 8 
Mo 
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 date 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. 
P 2/CE/RU/en 9 
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. 
P 2/CE/RU/en 10 
A<£L 
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. 
P 2/CE/RU/en 11 
^3 
ARTICLE 14 
Complementarity 
1. This Protocol shall complement and not impede the application orany 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. 
P 2/CE/RU/en 1 2 
FINAL ACT 
AF/CE/RU/en 1 
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, 
AF/CE/RU/en 2 
A/olC 
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 President 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. 
AF/CE/RU/en 3 
A-2?-
The plenipotentiaries of the Member States and of the Community and the President 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(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 
AF/CE/RU/en 4 
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 President 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 President 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. 
AF/CE/RU/en 5 
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. 
AF/CE/RU/en 6 
J3o 
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 insofar as such States or international organizations require special treatment 
for such imports. 
AF/CE/RU/en 7 
X5/ 
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. 
AF/CE/RU/en 8 
y?3Z. 
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. 
AF/CE/RU/en 9 
••J 33 
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 procedures 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. 
AF/CE/RU/en 10 
A/3L/ 
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: 
AF/CE/RU/en 11 
/73S~ 
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. 
AF/CE/RU/en 12 
^3£ 
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 facilitate 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. 
.9-> AF/CE/RU/en 13 
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 tbat 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. 
AF/CE/RU/en 14 y/3^ 
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. 
/<?? AF/CE/RU/en 15 
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. 
AF/CE/RU/en 16 
ylWO 
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. 
AF/CE/RU/en 17 
JOINT DECLARATION IN RELATION TO THE NOTION OF "CONTROL" 
IN ARTICLE 30(b) AND ARTICLE 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. 
AF/CE/RU/en 18 
A/t/£ 
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. 
AF/CE/RU/en 19 
A^3 
JOINT DECLARATION IN RELATION TQ 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. 
AF/CE/RU/en 20 >, •// 
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). 
AF/CE/RU/en 21 
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 resort to the procedures set out in Article 101. 
AF/CE/RU/en 22 J /^ 
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. 
AF/CE/RU/en 23 
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. 
AF/CE/RU/en 24 /<-ft 
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. 
AF/CE/RU/en 25 
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. 
AF/CE/RU/en 26 A _. 
/ISO 
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. 
__ AF/CE/RU/en 27 
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. 
AF/CE/RU/en 28 
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. 
AF/CE/RU/en 29 
JOINT DECLARATION IN RELATION TO ARTICLE 53(2.2) 
"Primary products" are those defined as such in the GATT. 
AF/CE/RU/en 30 //SV 
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 
programmes, 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 10 bis of 
the Paris Convention for the Protection of Industrial Property and protection of undisclosed 
information on know-how. 
AF/CE/RU/en 31 
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. 
AF/CE/RU/en 32 
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. 
AF/CE/RU/en 33 
/fS?-
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. 
Acr--CF/RU/en 34 
/A3 8 
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 under 
Article 107(2), the other Party may avail itself of the procedure provided for in Article 101 
s?s? AF/CE/RU/en 35 
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. 
AF/CE/RU/en 36 yfGo 
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. 
./- . AF/CE/RU/en 37 
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. 
AF/CE/RU/en 38 /)f6' JL 
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 his 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. 
AF/CE/RU/en 39 
A/61 
EXCHANGE OF LETTERS 
IN RELATION TO ARTICLE 22 
AF/CE/RU/en 40 Jê<f 
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. 
AF/CE/RU/en 41 
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 
AF/CE/RU/en 42 Â ^^ 
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 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. 
y^ -n AF/CE/RU/en 43 
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 
AF/CE/RU/en 44 Aies 
EXCHANGE OF LETTERS 
IN RELATION TO ARTICLE 52 
..^ AF/CE/RU/en 45 
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 
Please accept, Sir, the assurance of my highest consideration. us. 
For the Government 
of the Russian Federation 
AF/CE/RU/en 46 y?© 
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 
sti-i AF/CE/RU/en 47 
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. 
AF/CE/RU/en 48 y _, 
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. 
. -, _ AF/CE/RU/en 49 
/I f3 
DECLARATION BY RUSSIA IN RELATION TO ARTICLE 36 
Russia declares that the suppliers in 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. 
AF/CE/RU/en 50 ^?^ 
ISSN 0254-1475 
COM(97) 557 final 
DOCUMENTS 
EN 11 12 15 
Catalogue number : CB-CO-97-574-EN-C 
ISBN 92-78-26340-0 
Office for Official Publications of the European Communities 
L-2985 Luxembourg