COMMISSION OF THE EUROPEAN COMMUNITIES 
COM(94) 257 final 
Brussels, 15.06.1994 
94/ 015KAVC) 
Proposal 
for a Council and Commission Decision 
on the conclusion of the Agreement on Partnership and Cooperation 
between the European Communities and their Member States 
of the one part, and Russia, of the other part 
(presented by the Commission) 
Explanatory memorandum 
1. The attached proposal for a Council and Commission Decision constitutes the legal 
instrument for the conclusion of the Agreement on Partnership and Cooperation 
between the European Communities and their Member States, on the one hand, and 
Russia, on the other. 
2. Following the Council's adoption of the negotiating directives on 5 October 1992, 
negotiations with Russia took place in the course of 1992, 1993 and 1994. 
3. The Agreement is a mixed-type Agreement covering areas for which both the 
Community and the Member States are competent, and is concluded for an initial 
period often years. 
It establishes a political dialogue. The Agreement covers also trade in goods, labour 
conditions, establishment and operation of companies, cross-border supply of services, 
payments and capital, competition, intellectual, industrial and commercial property 
protection, legislative cooperation, economic cooperation, cultural cooperation and 
financial cooperation. 
The Agreement contains a clause covering human rights which allows it to be 
suspended, even unilaterally, in an emergency. 
The Agreement sets out an institutional framework for its implementation with a 
Cooperation Council, a Cooperation Committee and a Parliamentary Cooperation 
Committee. 
The Agreement establishes the prospect of a future free trade area. In 1998, 
circumstances will be assessed in order to see whether negotiation can begin towards 
free trade. 
4. The Agreement will supersede, as far as Russia is concerned, the Agreement on Trade 
and Commercial and Economic Cooperation between the European Economic 
Communities and USSR, signed on 18 December 1989. 
/K 
5. The procedures of the three Communities (EC, EAEC and ECSC) for signing and 
concluding the Agreement differ. 
For the purpose of concluding the Agreement : 
the Council will conclude the Agreement on behalf of the European Community in 
accordance with Articles 113 and 235 of the EC Treaty by adopting the attached 
decisions; 
in accordance with Article 95 of the ECSC, after consulting the Consultative 
Committee and with the unanimous assent of the Council, the Commission will 
conclude the Agreement on behalf of the ECSC; 
the Council will approve the Agreement in accordance with the second paragraph 
of Article 101 of the Euratom Treaty. The Commission will then conclude the 
Agreement (on behalf of the European Atomic Energy Community); 
given the mixed-type nature of the Agreement, the conclusion of the Agreement 
will have to be ratified by all the Member States. 
6. In view of the above, the Commission asks the Council to adopt the annexed decision. 
A*-
COUNCIL AND COMMISSION DECISION 
on the conclusion of the Agreement on Partnership and Cooperation 
between the European Communities and their Member States 
of the one part, and Russia, of the other part 
(../.. ./ECSC, EC, EURATOM) 
THE COUNCIL OF THE EUROPEAN UNION, 
THE EUROPEAN COMMISSION, 
Having regard to the Treaty establishing the European Coal and Steel Community, 
Having regard to the Treaty establishing the European Community, and in particular 
Article 113 and 235 in conjunction with article 228 paragraph 2 and 3, second 
subparagraph thereof, 
Having regard to the Treaty establishing the European Atomic Energy Community, and in 
particular the second paragraph of Article 101 thereof, 
Having regard to the approval of the Council granted pursuant to Article 101 of the 
Treaty establishing the European Atomic Energy Community, 
Whereas the Agreement on Partnership and Cooperation between the European 
Communities and their Member States, on the one part, and Russia, on the other, signed 
on ..., should be approved, 
Having consulted the Consultative Committee and with the unanimous agreement of the 
Council, 
Having regard to the assent of the European Parliament, 
HAVE DECIDED AS FOLLOWS : 
At 
Article 1 
The Agreement on Partnership and Cooperation between the European Communities and 
their Member States of the one part, and Russia, of the other part, together with the 
Protocols, the connected exchanges of letters, the declarations and the final act of 
adoption of the Agreement are hereby approved on behalf of the European Community, 
the European Coal and Steel Community, and the European Atomic Energy Community. 
These texts are attached to this Decision. 
Article 2 
1. The position to be adopted by the Community in the Cooperation Council 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 90 of the Agreement on Partnership and Cooperation, the 
President of the Council shall preside over the Cooperation Council and shall present 
the Community's position. A representative of the Commission shall preside over the 
Cooperation Committee in accordance with its rules of procedure and shall present the 
Community's position. 
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 Committee. 
Done at Brussels, 
/" I 
4 Draft • 
FINALACT 
The plenipotentiaries of 
THE KINGDOM OF BELGIUM, 
THE KINGDOM OF DENMARK, 
THE REPUBUC OF GERMANY, 
THE HELLENIC REPUBLIC, 
THE KINGDOM OF SPAIN, 
THE FRENCH REPUBUC, 
IRELAND, 
THE ITALIAN REPUBUC, 
THE GRAND DUCHY OF LUXEMBOURG, 
THE KINGDOM OF THE NETHERLANDS, 
THE PORTUGUESE REPUBUC, 
THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, 
Contracting Parties to the Treaty establishing the EUROPEAN COMMUNITY, the Treaty 
establishing the EUROPEAN COAL AND STEEL COMMUNITY, and the Treaty 
establishing the EUROPEAN ATOMIC ENERGY COMMUNITY, 
hereinafter referred to as "the Member States", and of 
the EUROPEAN COMMUNITY, THE EUROPEAN ATOMIC ENERGY COMMUNITY 
and the EUROPEAN COAL AND STEEL COMMUNITY, heremaâer referred to as "the 
Community", 
of the one part, and 
the plenipotentiary of the RUSSIAN FEDERATION, hereinafter referred to as "Russia", 
of the other part, 
meeting at this 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 Members 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 foUowing texts: 
The Agreement on Partnership and Cooperation including its annexes and the foUowing 
Protocols: 
Protocol 1 on the establishment of a coal and steel contact group, 
Protocol 2 era mutual administrant assistance for 
customs legislation, 
/it, 
The plenipotentiaries of the Member States and of the Community and the plenipotentiary of 
Russia have adopted the texts of the joint declarations listed below and annexed to this Final 
Act 
Joint declaration in relation to Thle in 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 of the Agreement 
Joint declaration in relation to Article 23 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), 3rd subparagraph of the Agreement 
Joint declaration in relation to Article 31 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, (2c), 2nd subpara, of theAgreement on 
opening ports 
Joint declaration in relation to Article 39, (2c), 2nd subpara, of the Agreement on vessels 
under a third flag 
Joint declaration in relation to Article 44 of theAgreement 
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 
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 
A ( 
The plenipotentiaries of the Member States and of the Community and the plempotentiaries of 
Russia have also taken note of the foUowing exchanges of letters annexed to this Final Act 
Exchange of letters in relation to Article 18 of the Agreement 
Exchange of letters in relation to Article 22 of the Agreement 
Exchange of letters in relation to Article 29 of the Agreement 
Exchange of letters in relation to Article 52 of the Agreement 
The plenipotentiary of Russia has taken note of the declarations listed below and annexed to 
this Final Act 
Community declaration in relation to Article 36 of the Agreement 
Community declaration in relation to Article 54 of the Agreement 
The plenipotentiaries of the Member States and of the Community have taken note of the 
declarations listed below and annexed to this Final Act 
Declaration by Russia in relation to Article 34 of the Agreement 
Declaration by Russia in relation to Article 36 of the Agreement 
Done at .' in the year one thousand nine hundred and ninety 
four. 
For the Kingdom of Belgium: 
etc. 
For the European Community represented by the Council of the European Union and the 
Commission of the European Communities: 
For the Russian Federation: 
A i 
9 June 1994 
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, 
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 ATOMIC ENERGY COMMUNITY and the 
EUROPEAN COAL AND STEEL COMMUNITY, 
hereinafter referred to as "the Community", 
of the one part, 
and THE RUSSIAN FEDERATION 
hereinafter referred to as "Russia", 
of the other part, 
4k 
CONSIDERING the importance of the historical links existing between 
the Community, its Member States and Russia and the common values 
that they share, 
RECOGNIZING that the community and Russia wish to strengthen these 
lin<s 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, the Conference on Security and Cooperation in Europe, and 
other fora, 
CONSIDERING the firm commitment of the Community and its Member 
Stares and of Russia to the full implementation of all 
principles and provisions contained in the Final Act of the 
Conference on Security and Cooperation in Europe (CSCE), the 
Concluding Documents of the Madrid and Vienna Follow Up Meetings, 
the Document of the CSCE Bonn Conference on Economic Cooperation, 
the Charter of Paris for a New Europe and the CSCE Helsinki 
Document 1992, "the Challenges of Change", 
CONFIRMING the attachment of the Community and its Member States 
and of Russia to the aims and principles set out in the European 
Energy Charter of 17 December 1991 and in the Declaration of the 
Lucerne Conference of April 1993, 
CONVINCED of the paramount importance of the rule of law and 
respect for human rights, particularly those of minorities, the 
establishment of a multiparty system with free and democratic 
elections and economic liberalisation aimed at setting up a market 
eco nomy, 
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 
USS* in order to promote the prosperity and stability of the 
region, 
°L. 
DESIROUS of establishing and developing regular political dialogue 
on bilateral and international issues of mutual interest, 
TAKING ACCOUNT of the Community's willingness to provide technical 
assistance, as appropriate, for the implementation of economic 
reform in Russia and for the development of economic cooperation, 
BEARING IN MIND the utility of the Agreement in favouring a gradual 
rapprochement between Russia and a wider area of cooperation in 
Europe and neighbouring regions and Russia's progressive 
integration into the open international trading system, 
CONSIDERING the commitment of the Parties to liberalise 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 organisation, hereinafter referred 
to as "WTO", 
RECOGNISING that Russia is no longer a state trading country; - it 
is now a country with an economy in transition -, 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 
environment 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 fol low's : 
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 ares 
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 support, 
- to promote activities of joint interest, 
to provide an appropriate framework for the gradual integration 
between Russia and a wider area of cooperation in Europe, 
to create the necessary conditions for the future establishment of 
a free trade area between the Community and Russia covering 
substantially all trade in goods between them, as well as 
conditions for bringing about freedom of establishment of 
companies, of cross-border trade in services and of capital 
movements. 
TITLE I : GENERAL PRINCIPLES 
Article 2 
Respect for the democratic principles and human rights as defined in 
particular in the Helsinki Final Act and the charter of Paris for a New 
Europe underpin the internal and external policies of the Parties 
and constitute an essential element of partnership and of the present 
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 developments to the Parties. Such development shall only be put 
into effect by virtue of an agreement between the Parties in accordance 
with their respective procedures. The Parties shall examine together 
in the year 1998 whether circumstances allow the beginning of 
negotiations on the establishment of a free trade area. 
Article 4 
The Parties undertake to examine together, by mutual consent, 
amendments which it may be appropriate to make to any part of the 
Agreement in view of changes in circumstances, and in particular of the 
situation arising from Russia's accession to GATT/WTO. The first 
examination shall take place three years after the entry into force of 
the Agreement or when Russia becomes a Contracting Party to GATT/WTO, 
whichever is earlier. 
Article 5 
1. The most favoured nation treatment granted by Russia under this 
Agreement shall not apply during a transitional period expiring 5 
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 becomes a Contracting Party of GATT/WTO, whichever is 
earLier. 
TITLE II ; POLITICAL DIALOGUE 
Article 6 
A regular political dialogue shall be established between the Parties 
which t-hey 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: 
8haLl strengthen the links between Russia and the European Union. 
The economic convergence achieved through this Agreement shall lead 
to more intense political relations; 
shall bring about an increasing convergence of positions on 
international issues of mutual concern thus increasing security and 
staoility. 
- 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 European Council and the President of the 
Commission of the European _ Communities on one side and the 
President of Russia on the other. 
2. At ministerial level, political dialogue shall take place within 
the Cooperation Council established in Article 90 and on other 
occasions, including with the European Union Troika, by mutual 
agreement. 
Article 8 
Other procedures and mechanisms for political dialogue shall be set up 
by the Parties, and in particular in the following forms: 
- biannual meetings at senior official level between the European 
Union Troika on the one hand, and officials of Russia on the other; 
taking full advantage of diplomatic channels; 
any other means, including the possibility of expert meetings, 
which would contribute to consolidating and developing this 
dia Logue. 
Article 9 
Political dialogue at parliamentary level shall take place within the 
framework of the Parliamentary Cooperation Committee established in 
Article 95. 
TITLE III: TRADE IN GOODS 
Article 10 
1. The Parties shall accord to one another the general most-favoured­
nation treatment described in Article I paragraph 1 of the GATT. 
2. The provisions of paragraph 1 shall not apply to: 
(a) advantages accorded to adjacent countries in order to facilitate 
frontier traffic; 
(b) advantages granted with the aim of creating a customs union or a 
free trade area or pursuant to the creation of such union or area. 
The terms "customs union" and "free trade area" shall have the same 
meaning as those described in paragraph 8 of Article XXIV of the 
GATT or created through the procedure indicated in paragraph 10 of 
the same GATT article; 
(c) advantages granted to particular countries in accordance with 
the GATT and with other international arrangements in favour of 
developing countries. 
Article 11 
1. The products of the territory of one Party imported into the 
territory of the other Party shall not be subject, directly or 
indirectly, to internal taxes or other internal charges of any kind 
in excess of those applied, directly or indirectly, to like 
domestic products. 
2. Moreover, these products shall be accorded treatment no less 
favourable than that accorded to like products of national origin 
in respect of all laws, regulations and requirements affecting 
their internal sale, offering for sale, purchase, transportation, 
distribution or use. The provision of this paragraph shall not 
prevent the application of differential internal transportation 
charges which are based exclusively on the economic operation of 
the means of transport and not on the nationality of the product. 
3. Article III paragraphs 8, 9 and 10 of the GATT shall be applicable 
mutatis mutandis between the Parties. 
Article 12 
1. The Parties agree that the principle of freedom of transit is an 
essential condition of attaining the objectives of this Agreement. 
In this connection each Party shall provide for freedom of transit 
through its territory of goods originating in the customs territory 
or destined for the customs territory of the other Party. 
2. The rules described in Article V, paragraphs 2, 3, 4 and 5 of the 
GATT shall be applicable between the Parties. 
3) 
Article 13 
The following articles of the GATT shall be applicable mutatis mutandis 
between the Parties: 
i) Article VII, paragraphs 1, 2, 3, 4 a), b) and d), 5; 
ii) Article VIII; 
iii)Article IX; 
iv) 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 
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 paragraph 2 of the present Agreement. Account shall be 
taken of the conditions under which the obligations stemming from such 
a convention have been accepted by the Party in question. 
Article 15 
1. Goods originating in Russia shall be imported into the Community 
free of quantitative restrictions without prejudice to the 
provisions of articles 17, 20 and 21 of the present Agreement and 
to the provisions of articles 77, 81, 244, 249 and 280 of the Acts 
of Accession of Spain and Portugal to the European community. 
2. Goods originating in the Community shall be imported into Russia 
free of quantitative restrictions without prejudice to the 
provisions of articles 17, 20 and 21 and of Annex 2 to the present 
Agreement. 
Article 16 
Until Russia becomes a Contracting Party 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 directly competitive products, the community 
or Russia, which ever is concerned, may take appropriate measures 
in accordance With the following procedures and conditions. 
2. Before taking any measures, or in cases to which paragraph 4 
applies as soon as possible thereafter, the community or Russia as 
the case may be shall supply the Cooperation Committee with all 
relevant information with a view to seeking a solution acceptable 
to both Parties. The Parties shall commence consultations promptly 
within the Cooperation Committee. 
3. If, as a result of the consultations, the Parties do not reach 
agreement within 30 days of referral to the Cooperation 
Committee on actions to avoid the situation, the Party which 
requested consultations shall be free to restrict imports of the 
products concerned or to 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 Title III of this Agreement 
towards the first Party in respect of substantially equivalent 
trade. 
Sucn action shall not be taken before consultations have been 
offered by such other Party nor if agreement has been reached 
witnin 45 days following the date these consultations were offered. 
7. The right of deviation from the obligations referred to in 
paragraph 6 shall not be exercised for the first three years that a 
safeguard measure is in effect, provided that the safeguard measure 
has been taken as a result of an absolute increase in imports, for 
the maximum period of four years, and in conformity with the 
provisions of this Agreement. 
Article 18 
Nothing in this Title, and in Article 17 in particular shall prejudice 
or affect in any way the taking, by either Party, of anti-dumping or 
countervailing measures in accordance with Article VI of the GATT, the 
Agreement on implementation of Article VI of the GATT, the Agreement on 
interpretation and .application of Articles VI, XVI and XXIII of the 
GATT or related internal legislation. 
In respect of antidumping 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 
antidumping and countervailing duties are imposed, the Parties shall do 
their utmost to bring about a constructive solution of 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 shall not, however, constitute a means of 
arbitrary discrimination or a disguised restriction on trade between 
the Parties. 
Article 20 
Title III 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 
the present 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 III, 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 No.l annexed to this Agreement. 
10 
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 paragraphs 1 to 5 and paragraph 7; 
- the provisions of Articles 6, 7, 14 and 15 paragraphs 1, 2, 3 -
first sentence, and paragraphs 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 paragraph 5 of the 
1989 Agreement to "this Agreement" shall be read as meaning the 
regime established by paragraph 1 of this Article; 
the reference in Article 17 paragraph 6 of the present 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 the present Agreement; 
the reference to the "Joint Committee" in Article 15 of the 1989 
Agreement shall mean the Cooperation Committee provided for 
mder Article 92 of the present Agreement. 
11 
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 the Member states shall ensure that 
the treatment accorded to Russian nationals, legally employed in 
the territory of a Member state shall be free from any 
discrimination based on nationality, as regards working 
conditions, remuneration or dismissal, as compared to its own 
nationals. 
2. Russia shall, subject to the conditions and modalities applicable 
in Russia, accord the treatment referred to in paragraph 1 to 
nationals of a Member State who are legally employed in its 
territory. 
Article 24 
Coordination of social security 
The Parties shall conclude agreements in order: 
(i) to adopt, subject to the conditions and modalities applicable 
in each Member state, the provisions necessary for the 
coordination of social security systems for workers of Russian 
nationality, legally employed in the territory of a Member 
state and where applicable for the members of their family, 
legally resident there. These provisions will in particular 
ensure that: 
- all periods of insurance, employment or residence completed 
by such workers in the various Member states shall be added 
together for the purpose of pensions in respect of old age, 
invalidity and death and for the purpose of medical care 
for such workers and where applicable for such family 
members; 
any pensions in respect of old age, death, industrial 
accident or occupational disease, or of invalidity 
resulting therefrom, with the exception of the special non-
contributory benefits, shall be freely transferable at the 
rate applied by virtue of the law of the debtor Member 
State or States; 
i -> 
- the workers in question shall where applicable receive 
family allowances for the abovementioned members of their 
family -
(ii) 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 (i). 
Article 25 
The measures to be taken in accordance with Article 24 of the present 
Agreement shall not affect any rights or obligations arising from 
bilateral agreements linking Russia and the Member States where those 
agreements provide for more favourable treatment of nationals of Russia 
or of the Member States. 
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 CSC3 Bonn Conference. 
Article 27 
The Cooperation Council shall make recommendations for the 
implementation of Articles 23 and 26 of the present Agreement. 
13 
Chapter II: Conditions affecting the establishment and 
operation of companies 
Article 28 
1. The community and its Member States of the one part and Russia of 
the other part, shall grant to each other treatment no less 
favourable than that accorded to any third country, with regard to 
conditions affecting the establishment of companies in their 
territories and this in conformity with the legislation and 
regulations applicable in each Party. 
2. Without prejudice to the reservations listed in Annex 3, the 
Community and its Member States shall grant to Community 
subsidiaries of Russian companies a treatment no less favourable 
than that granted to other community companies or to Community 
companies which are subsidiaries of any third country companies 
whichever is the better, in respect of their operation and this in 
conformity with their legislation and regulations. 
3. Without prejudice to the reservations listed in Annex 4, Russia 
shall grant to Russian subsidiaries of Community companies a 
treatment no less favourable than that granted to other Russian 
companies or to Russian companies which are subsidiaries of any 
third country companies whichever is the better, in respect of 
their operation and this in conformity with its legislation and 
regulations. 
4. The Community and its Member states of the one part and Russia of 
the other part shall grant to branches of Russian and Community 
companies respectively a treatment no less favourable than that 
accorded to branches of companies of any third country, in respect 
of their operation and this in conformity with their legislation 
and regulations. 
5. The provisions of paragraphs 2 and 3 cannot be used so as to 
circumvent a Party's legislation and regulations applicable to 
access to specific sectors or activities by subsidiaries of 
companies of the other Party established in the territory of such 
fir3t 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. 
14 
Article 29 
The provisions of Article 28 of the present 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, 
paragraph 1, with regard to establishment by means of the setting 
up of subsidiaries only and under Article 28, paragraph 3, is set 
out in Annex 7, part A. 
In respect of insurance services referred to in Annex 6, part A, 
paragraphs 1 and 2, the nature of the treatment accorded by Russia 
under Article 28, paragraph 1, is set out in Annex 7, part B. 
2. Notwithstanding any other provisions of this Agreement, a Party 
sha 11 not be prevented from taking measures for prudential reasons, 
including for the protection of investors, depositors, policy 
holders or persons to whom a fiduciary duty is owed by a financial 
service supplier, or to ensure the integrity and stability of the 
financial system. Such measures shall not be used as a means of 
avoiding the Party's obligations under the Agreement. 
Nothing in the Agreement shall be construed to require a Party to 
disclose information relating to the affairs and accounts of 
individual customers or any confidential or proprietary information 
in the possession of public entities. 
3. Without prejudice to the provisions of Part A, paragraph 1, 
• subparagraphs 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 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. 
AX 
14) 
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 (b) 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 che first company. 
c) "Economic activities" shall mean activities of an industrial, 
commercial or professional character, including financial services. 
d) "Branch" of a company shall mean a place of business not having 
legal personality which has the appearance of permanency, such as 
the extension of a parent body, has a management and is materially 
equipped to negotiate business with third parties so that the 
latter, although knowing that there will if necessary be a legal 
link with the parent body, the head office of which is abroad, do 
not have to deal directly with such parent body but may transact 
business at the place of business constituting the extension. 
e) "Community subsidiary" or "Russian subsidiary" respectively shall 
mean a "Community company" or a "Russian company" respectively, as 
hereafter defined, which is also a subsidiary of a "Russian 
company" or a "Community company" respectively. 
f) A national of a Member State or of Russia respectively shall mean a 
natural person who is a national of one of the Member States or of 
Russia respectively in accordance with their respective 
legislation. 
g) "Operation" shall mean the pursuit of economic activities. 
In respect of financial services mentioned in Article 29, 
"operation" shall mean the pursuit of all the economic activities 
authorized by the licence granted to the Company by the competent 
authorities in conformity with the laws and regulations applicable 
in each Party. 
Ak 
h) A "Community company" or a "Russian company" respectively shall 
mean a company set up in accordance with the laws of a Member State 
or of Russia respectively and having its registered office or 
central administration, or principal place of business in the 
territory of the Community or Russia respectively. However, should 
the company, set up in accordance with the laws of a Member State 
or Russia respectively, have only its registered office in the 
territory of the Community or Russia respectively, the company 
* shall be considered a Community or Russian company respectively if 
its operations possess a real and continuous link with the economy 
of one of the Member States or Russia respectively. 
With regard to international maritime transport, shall also be 
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 legislations. 
For the purposes of this provision, international maritime 
transport shall be considered to include intermodal transport 
operations involving a sea leg without prejudice to applicable 
nationality restrictions concerning the carriage of goods and 
passengers by other transport modes. 
i) For the purpose of Article 29 and Annex 7, with regard to banking 
services referred to in Annex 6, part B, "Russian subsidiary" or 
"Community subsidiary" as defined in paragraph e), shall refer to 
sucn 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. 
Al 
Article 31 
Notwithstanding Article 100, the provisions of the present Title shall 
not prejudice the application by each Party of any measure necessary to 
prevent the cixcumvention, through the provisions of this Agreement, of 
its measures concerning third country access to its market. 
Article 32 
1. Notwithstanding the provisions of Chapter I of this Title, a 
Community company and a Russian company established in the 
territory of Russia or the Community respectively shall be 
entitled to employ, or have employed by one of its subsidiaries, 
branches or joint ventures, in accordance with the legislation in 
force in the host country of establishment, in the territory of 
Russia and the Community respectively, employees who are nationals 
of Member states and Russia respectively, provided that such 
employees are key personnel as defined in paragraph 2 of this 
Article, and that they are employed exclusively by companies, 
subsidiaries, branches or joint ventures. The residence and work 
permits of such employees shall only cover the period of such 
employment. 
2. Key personnel of the above-mentioned companies herein referred to 
as "organizations" are "intra-corporate transferees" as defined in 
paragraph 2(c) of this Article in the following categories, 
provided that the organisation is a juridical 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 organisation, 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 sub-division of 
the establishment; 
- supervising and controlling the work of other supervisory, 
professional or managerial employees; 
- having the authority personally to hire and fire or recommend 
hiring, firing or other personnel actions, 
(b) Persons working within an organisation 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 
wor< or trade requiring specific technical knowledge, including 
memoership of an accredited profession. 
a 
(c) An "intra-corporate transferee" is defined as a natural person 
working within an organisation din 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 organisation 
concerned must have its principal place of business in the 
territory of a Party and the transfer be to an establishment of 
that organisation, effectively pursuing like economic activities in 
the territory of the other Party. 
Article 33 
The Parties recognize the importance of granting each other national 
treatment with regard to the establishment and, where not so foreseen 
herein, operation of each other's companies in their territories and 
agree to consider the possibility of movement towards this end on a 
mutually satisfactory basis, and ,in the light of any recommendations by 
the Cooperation Council. 
Article 34 
1. The Parties shall use their best endeavours to avoid taking any 
measures or actions which render the conditions for the 
establishment and operation of each other's companies more 
restrictive than the situation existing on the day preceding the 
date of signature of the Agreement. 
2. By the end of the third year after signature of the Agreement at 
the latest, and thereafter at annual intervals the Parties shall 
examine within the Cooperation Council: 
measures introduced by either Party since the signature of 
the Agreement which affect the establishment or operation 
of companies of one Party in the territory of the other 
Party, and which are the subject of commitments assumed in 
Article 28; and 
- whether it is possible for the Parties to assume 
the obligation not to take any measures or actions 
which may render the conditions for the establishment 
and operation of each other's companies more 
restrictive than the situation existing at the time of 
such examination, where not already foreseen herein, or 
- other obligations affecting their freedom of action 
in areas agreed between the Parties in respect of the 
commitments assumed in Article 28. 
4? 
If after such examination one Party is of the view that measures 
introduced by the other Party since the signature of the Agreement 
result in a situation which is significantly more restrictive in 
respect of establishment or operation of companies of the first 
Party in the territory of the other Party as compared with the 
situation existing at the date of signature of the Agreement, such 
Party may request the other Party to enter into consultations. In 
such case the provisions of Part A of Annex 8 shall apply. 
3. In furtherance of the aims of this article, measures shall be taken 
as indicated in Part B of Annex 8. 
4. The provisions of this article are without prejudice to those of 
Article 51: the situations covered by such Article 51 shall be 
solely governed by its provisions to the exclusion of any other. 
Article 35 
1. Article 28 shall not apply to air transport, inland waterways 
transport and maritime transport. 
2. However, in respect of activities, as indicated below, undertaken 
by shipping agencies for the provision of services to international 
maritime transport, including intermodal transport operations 
involving a,sea-leg, each Party shall permit 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; 
(c) preparation of documentation concerning transport documents, 
customs documents, or other documents related to the origin and 
character of the goods transported; 
1° 
(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 organising the 
call of the vessel or taking over cargoes when required. 
V 
Chapter III: Cross border supply of services 
Article 36 
For the sectors listed in Annex 5 to this Agreement, the Parties shall 
grant each other treatment no less favourable than that accorded to any 
third country with regard to the conditions affecting the cross border 
supply of services, by Community or Russian companies into the 
territory of Russia or the community respectively, pursuant to the 
legislation and regulations applicable in each Party. 
Article 37 
Subject to the provisions of Article 48 of the present 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 supply services or entering intc 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 Article 36 
and Article 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 
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 
22 
other obligations affecting their freedom of action 
in areas agreed between the Parties in respect of the 
commitments assumed in Article 36. 
If after such examination one Party is of the view that measures 
introduced by the other Party since the signature of the Agreement 
result in a situation which is significantly more restrictive in 
respect of cross-border supply of services covered by Article 36 as 
compared with the situation existing at the date of signature of 
the Agreement, such first Party may request the other Party to 
enter into consultations. In such case the provisions of Part A of 
Annex 8 shall apply. 
4. In furtherance of the aims of this article, measures shall be taken 
as indicated in Part B of Annex 8. 
5. The provisions of this article are without prejudice to those of 
Article 51: the situations covered by such Article 51 shall be 
solely governed by its provisions to the exclusion of any other. 
Article 39 
1. With regard to maritime transport, the Parties undertake to apply 
effectively the principle of unrestricted access to the 
international market and traffic on a commercial basis. 
a) The above provision does not prejudice the rights and 
obligations arising under the United Nations Convention on a 
Code of Conduct for Liner Conferences, as applicable for a 
Party to the present 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 trades, as from entry into force of 
this Agreement, any cargo sharing provisions of bilateral 
agreements between any Member State and the former USSR; 
23 
(5) 
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 the present Agreement would not 
otherwise have an effective opportunity to ply for trade to and 
from the third country concerned; 
c) abolish, upon entry into force of this Agreement, all 
unilateral measures, administrative, technical and other 
obstacles which could constitute a disguised restriction or 
have discriminatory effects on the free supply of services in 
international maritime transport. 
Each Party shall grant, inter alia, a treatment no less 
favourable than that accorded to a Party's own vessels, for 
vessels used for the transport of goods, passengers or both, 
and flying the flag of the other Party, with respect to access 
to ports open to foreign vessels, the use of infrastructure and 
auxiliary maritime services of those ports, as well as related 
fees and charges, customs facilities and the assignment of 
berths and facilities for loading and unloading. 
3. The Parties agree that, following the entry into force of this 
Agreement and not later than 31 December 1996, they will conduct 
negotiations on the stage-by-stage opening of the inland waterways 
of each Party to the nationals and shipping companies of the other 
Party, in respect of the freedom tc provide international sea-river 
services. 
2.4 
Article 40 
For the purpose of establishing favourable conditions for rail 
transport between the Parties, it is agreed that both Parties will, in 
the framework of this Agreement and through appropriate bilateral and 
multilateral mechanisms, promote: 
- the facilitation of customs and other border clearance 
procedures for freight and for rolling stock; 
- cooperation in the creation of suitable rolling stock meeting 
the requirements of international traffic; 
- the approximation of regulations and procedures which govern 
international transport; 
the safeguarding and development of international passenger 
traffic between Russia and the Member States. 
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, applied by 
each Party. In 1996, the Parties will meet to consider the 
possibilities of granting to each other MFN treatment for mobile 
satellite services. 
Article 43 
With a view to assuring a coordinated development of transport between 
the Parties,adapted to their commercial needs, the Parties may, after 
the entry into force of this Agreement, conclude specific Agreements 
regarding the conditions of mutual market access and of provision of 
services in the transport sector, to the extent that these conditions 
are not already addressed by this Agreement, such agreements may apply 
to more than one or to a single mode of transport. 
rt 
Chapter IV: General Provisions 
Article 44 
For the purposes of Chapters II, III and 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 Russian 
companies and Community companies jointly shall also be beneficiaries 
of the provisions of Chapters II and III of this Title and of Title V. 
Article 46 
1. The provisions of this Title shall be applied subject to 
limitations justified on grounds of public policy(*), public 
security or public health. 
2. They shall not apply to activities which in the territory of either 
Party are connected, even occasionally, with the exercise of 
official authority. 
Article 47 
The Cooperation Council shall make recommendations for the further 
liberalization of trade in services, taking into account the 
development of the services sectors in the Parties and the other 
international commitments entered into by the Parties, in particular in 
the light of the final results of the negotiations of the General 
Agreement on Trade in services, hereinafter referred to as "GATS". 
Article 48 
For the purpose of Title IV of this Agreement, 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. 
(1) To be translated in Russian as "obschestvenniy poriadok' 
Article 49 
a) The Most Favoured Nation treatment granted in accordance with the 
provisions of Title IV or 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. 
b) Nothing in Title IV or 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. 
c) Nothing in Title IV or Title v shall be construed to prevent Member 
States or Russia from distinguishing, in the application of the 
relevant provisions of their fiscal legislation, between taxpayers 
who are not in identical situations in particular as regards their 
place of residence. 
Article 50 
Without prejudice to Articles 32 and 37, no provision of Chapters II, 
III and IV hereof shall be interpreted as giving the right to: 
nationals of the Member states or of Russia respectively to 
enter, or stay in, the territory of Russia or the community 
respectively in any capacity whatsoever, and in particular as a 
shareholder or partner in a company or manager or employed 
thereof or supplier or recipient of services; 
- Community subsidiaries or branches of Russian companies to 
employ or have employed in the territory of the Community 
nationals of Russia; 
- Russian subsidiaries or branches of community companies to 
employ or have employed in the territory of Russia nationals of 
the Member States; 
- Russian companies or Community subsidiaries or branches of 
Russian companies to supply workers who are Russian nationals 
to act for and under the control of other persons by temporary 
employment contracts; 
- Community companies or Russian subsidiaries or branches of 
Community companies to supply workers who are nationals of the 
Member states to act for and under the control of other persons 
by temporary employment contracts. 
<k 
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. 
3. Within one month of. receipt from the Party, which has assumed 
obligations under the GATS, of the information referred to in 
paragraph 2 above, 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. 
2? 
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 direct 
investment 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, 
nationalisation or measures of equivalent effect, and of any profit 
stemming therefrom shall 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. 
5. Without prejudice to Paragraphs 6 and 7, after a transitional 
period of 5 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 residents of the 
Community and Russia cause, or threaten to cause, serious 
difficulties for the operation of exchange rate policy or monetary 
policy in the Community or Russia, the Community and Russia, 
respectively, may take safeguard measures with regard to movements 
of capital between the Community and Russia for a period not 
exceeding six months if such measures are strictly necessary. 
<o »-7 
7. With reference to the provisions of this Article, until a full 
convertibility of the Russian currency within the meaning of 
Article VIII of the articles of agreement of the International 
Monetary Fund (IMF) is introduced, Russia may apply exchange 
restrictions connected with the granting or taking up of short and 
medium-term financial credits to the extent that such restrictions 
are imposed on Russia for the granting of such credits and are 
permitted according to Russia's status under the IMF. 
Russia shall apply these restrictions in a non-discriminatory 
manner. They shall be applied in such a manner as to cause the 
least possible disruption to this Agreement. Russia shall inform 
the Cooperation Council promptly of the introduction of such 
measures and of any changes therein. 
8. The Parties shall consult each other with a view to 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. 
?e 
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 law 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. 
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 
martceted. 
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 tc such undertakings. 
^u 
(6) 
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. A 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 or 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) 
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 1978); 
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 Procedures (1977, 
modified in 1980); 
- Patent Cooperation Treaty (Washington 1970, amended and 
modified in 1980). ' 
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. 
(2) The term "intellectual, industrial and commercial property" will 
be translated into Russian by "intellectual'naya sobstvennost". 
TV 
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 shall be gradually made compatible with that 
of the community. 
2. The approximation of laws shall extend to the following areas in 
particular: company law, banking law, company accounts and taxes, 
protection of workers at the workplace, financial services, rules 
on competition, public procurement, protection of health and life 
of humans, animals and plants, the environment, consumer 
protection, indirect taxation, customs law, technical rules and 
standards, nuclear laws and regulations, transport. 
33 
TITLE VII: ECONOMIC COOPERATION 
Article 56 
1. The Community and Russia shall foster economic cooperation of wide 
scope in order to contribute to the expansion of their respective 
economies, to the creation of a supportive international economic 
environment and to the integration between Russia and a wider area 
of cooperation in Europe, such cooperation shall strengthen and 
develop economic links to the benefit of both Parties. 
2. Policies and other measures of the Parties related to this title 
shall in particular be designed to bring about economic and social 
reforms and restructuring in Russia and shall be guided by the 
requirements of sustainability and harmonious social development; 
they shall also fully incorporate environmental considerations. 
3. The cooperation shall, inter alia, cover: 
- development of their respective industries and transport; 
exploration of new sources of supply and of new markets; 
- encouragement of technological and scientific progress; 
- encouragement of a stable social and human resources 
development and of local employment development; 
- promotion of the regional cooperation with the aim of its 
harmonious and sustainable development. 
4. The Parties consider it essential that, alongside with establishing 
a relationship of partnership and cooperation with each other, they 
maintain and develop cooperation with other European states and 
with the other countries of the former USSR with a view to a 
harmonious development of the region and shall make every effort to 
encourage this process . 
5. As far as applicable economic and other forms of cooperation 
provided for in this Agreement may be supported by the community on 
the basis of the relevant Council regulations on technical 
assistance to the countries of the former USSR, taking into account 
the priorities agreed upon by the Parties. Support may also be 
provided through such other relevant Community instruments as may 
be available. 
Special attention shall be devoted by the Parties to measures 
capable of fostering cooperation with the other countries of the 
former USSR. 
6. The provisions of this Title shall not affect the enforcement of 
the Parties' competition rules and of the specific competition 
provisions of this agreement applicable to undertakings. 
34 
Article 57 
Industrial cooperation 
1. cooperation shall aim at promoting 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 privatisation 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. 
Article 58 
Investment promotion and protection 
1. Bearing in mind thé 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. 
3S 
Article 59 
public Procurement 
The Parties shall cooperate to develop conditions for open and 
competitive award of public procurement contracts, in particular 
through calls for tenders. 
Article 60 
Standards and conformity assessment; consumer protection 
1. Within the limits of their competence, and in accordance with their 
legislation the Parties shall take measures with a view to reducing 
the differences which exist between the Parties in the fields of 
metrology, standardisation 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. 
it 
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. Spécial 
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. Sucn cooperation shall be regularly reviewed by the Parties in a 
special committee or body to be set up in accordance with the 
provisions of Article 93. 
4. This article is without prejudice to articles dealing more 
specifically with raw materials, in particular Articles 21, 65 and 
66. 
Article 62 
Science and technology 
1. The Parties shall promote bilateral cooperation in civil scientific 
research and technological development (RTD) on the basis of mutual 
benefit and, taking into account the availability of resources, 
adequate access to their respective programmes and subject to 
appropriate levels of effective protection of intellectual, 
industrial and commercial property rights (IPR). 
2. Science and technology cooperation shall cover: 
the exchange of scientific and technical information; 
joint RTD activities; 
- training activities and mobility programmes for scientists, 
researchers and technicians engaged in RTD on 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 which are or have been engaged in 
research on/and production of weapons of mass destruction. 
3. sucn Cooperation shall be implemented according to specific 
arrangements to be negotiated and concluded in accordance with the 
procedures adopted by each party, and which shall set out, inter 
alia, appropriate IPR provisions. 
\> 
Article 63 
Education and training 
1. The Parties shall cooperate with the aim of raising the level of 
general education and professional qualifications both in the 
public and private sectors. 
2. The cooperation shall focus in particular on the following areas: 
- updating higher education and training systems in Russia; 
- the training of public and private sector executives and senior 
civil servants in priority areas to be determined; 
- cooperation between universities, cooperation between 
universities and firms; 
- mobility for teachers, graduates, young scientists and 
researchers, administrators and young people; 
- promoting teaching in the field of European Studies within the 
appropriate institutions; 
- teaching languages of the Community and of Russia; 
- postgraduate 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 
fie Id 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. 
%i 
Article 64 
Agriculture and the agro-industrial sector 
1. cooperation shall aim at the modernisation, 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 farm and distribution channels, methods of 
s to rage, marketing and management, modernising 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; 
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; 
- modernisation 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 to 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. 
H 
17) 
Article 66 
Nuclear sector 
Bearing in mind the respective powers and competences of the community 
and its Member states, civil cooperation in the nuclear sector 
shall take place inter alia through the implementation of two 
agreements on thermonuclear fusion, and on nuclear safety to be agreed 
upon between the Parties. 
Article 67 
Space 
Without prejudice to Article 41, the Parties shall promote long term 
cooperation as appropriate in the areas of civil space research 
development and commercial application. They shall pay particular 
attention to initiatives making on 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 modernising and 
restructuring the construction sector in Russia in line with the 
principles of a market economy and duly taking into account related 
health, safety and environmental aspects. 
Article 69 
Environment 
1. Bearing in mind the European Energy Charter and the Declaration of 
the Lucerne Conference of 1993, the Parties shall develop and 
strengthen their cooperation on environment and human health. 
2. Cooperation shall aim at combating the deterioration of the 
environment and in particular: 
effective monitoring of pollution levels and assessment of 
environment; system of information on the state of the 
environment; 
combating local, regional and transboundary air and water 
pollution; 
- -ecological restoration; 
an 
- sustainable, efficient and environmentally effective production 
and use of energy; .safety of industrial plants; 
- classification and safe handling of chemicals; 
- water quality; 
- waste reduction, recycling and safe disposal, implementation of 
the Basle Convention; 
- the environmental impact of agriculture, soil erosion, and 
chemical pollution; 
- the protection of forests; 
- the conservation of biodiversity, protected areas and 
sustainable use and management of biological resources; 
land-use planning, including construction and urban planning; 
- use of economic and fiscal instruments; 
global climate change; 
- environmental education and awareness. 
implementation of thé Espoo Convention on Environmental impact 
Assessment in .a transboundary context. 
3. Cooperation shall take place particularly through: 
disaster planning and other emergency situations; 
- exchange of information and experts, including information and 
experts dealing with the transfer of clean technologies and the 
safe and environmentally sound use of biotechnologies; 
joint research activities; 
- improvement of laws (Community standards); 
cooperation at regional level (including cooperation within the 
framework of the European Environment Agency established by the 
Community and at international level; 
development of strategies, particularly with regard to global 
and climatic issues and also in view of achieving sustainable 
development; 
- environmental impact studies; 
Article 70 
Transport 
The Parties shall develop and strengthen their cooperation in the field 
of transport. 
This cooperation shall, inter alia, aim at restructuring and 
modernizing transport systems and networks in Russia and developing and 
ensuring, where appropriate, compatibility of transportation systems in 
the context of achieving a more global transportation system. 
The cooperation shall include, inter alia: 
the modernizing of management and operations of road transport, 
raiLways, ports and airports; 
M 
modernization and development of railways, waterways, road, port, 
airport and air navigation infrastructure including the 
modernization of major routes of common interest and the 
transeuropean links for the above modes; 
promotion and development of multimodal transport; 
the promotion jointly of R and D programmes; 
preparation of the legislative and institutional framework for 
policy development and implementation including privatisation of 
the transport sector. 
Article 71 
Postal services and Telecommunications 
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 sides 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. 
These activities shall focus, inter alia, on the following priority 
areas : 
development and modernisation of an integrated 
telecommunications sector in Russia in the framework of market 
reforms and creation of an appropriate regulatory basis; 
- modernization of Russia's telecommunications network and its 
integration at the technical level into European and world 
networks ; 
- cooperation in development of systems of information exchange 
and data transmission between organizations of the Community 
and Russia; 
- integration at the technical level of transeuropean 
telecommunications networks; 
modernization of Russia's postal and broadcasting services, 
including legal and regulatory aspects; 
Lti 
- 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 EC Member States; 
restructuring of the banking, insurance and financial system; 
- improvement of monitoring and regulation of the banking, 
insurance and financial services sector; 
- developing compatible auditing systems; 
- exchange of information on the respective laws in force or 
under preparation; 
- modern 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 ciuthorities 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 encourage direct contacts between the respective regions and 
public organisations responsible for regional development planning with 
the aim, inter alia, to exchange methods and forms of regional 
development fostering. 
43 (8) 
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 accidents 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; 
modernisation of the job-finding and consulting services; 
planning and management of the restructuring programmes; 
- encouragement of local employment development; 
- exchange of information on the programmes of flexible 
employment, including those stimulating self-employment and 
promoting entrepreneurship. 
3. The Parties shall pay special attention to cooperation in the 
sphere of social protection which, inter alia, shall include 
cooperation in planning and implementing social protection reforms 
in Russia. 
These reforms shall aim to develop in Russia methods of protection 
intrinsic to market economies and shall comprise all directions of 
social security activities. 
The cooperation shall also include technical assistance to the 
development of social insurance institutions with the aim of 
promoting gradual transition te- a system consisting of a 
combination of contributory and social assistance forms of 
protection, as well as respective non-governmental organisations 
providing social services. 
44 
Article 75 
Tourism 
Thé Parties shall increase and develop cooperation between them, which 
shall include : 
- facilitating the tourist trade ; 
-' cooperation between official tourism bodies; 
- increasing the flow of information; 
- transferring know-how; 
- studying the opportunities for joint operations. 
Article 76 
small and medium-sized enterprises 
1. The Parties shall aim to develop and strengthen small and medium-
sized enterprises (SMEs) and promote cooperation between SMEs of 
the Community and Russia. 
2. The Parties shall encourage the exchange of information and know-
how, inter alia, in areas such as: 
- legal, administrative, technical, tax, financial and other 
conditions necessary for setting up and expansion of SMEs and 
for cross-border cooperation; 
- the provision of the specialized services required by SMEs, 
like management and marketing training, accounting, quality 
control and creation and strengthening of agencies providing 
such services; 
- establishment of continuous and stable links between the 
Community and Russian operators in order to improve the flow of 
information to SMEs and promoting cross-border cooperation, 
inter alia, through access to and operation of Business 
cooperation Network, Euro-lnfo-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. 
kÇ 
Article 77<3> 
Communication, Informatics and Information Infrastructure 
1. The Parties shall support the development of modern methods of 
information handling, including the media. They shall take 
appropriate steps to stimulate the effective mutual exchange of 
information. Priority shall be given to programmes aimed at 
providing the general public with basic information about the 
community and professional, inter alia, business circles with 
specialised 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 mter-operability with Community 
information infrastructures; 
- development of joint programmes concerning the training of 
specialists in information technologies and information services; 
promotion of European technical standards, systems of certification 
and regulatory approaches. 
Article 78 
Customs 
1. The aim of cooperation shall be to achieve compatibility of the 
customs systems of the Parties. 
2. Cooperation shall include the following in particular: 
the exchange of information; 
- the improvement of working methods; 
- harmonisation and simplification of customs procedures 
regarding the goods traded between the Parties; 
(3) Russia will translate 'informatics and information 
infrastructures' by 'informatsia i informatizatsia' 
c, c 
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-tarif 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 No. 2. 
Article 79 
Statistical cooperation 
1. The cooperation shall aim at further development of efficient 
statistical systems, informational and programme-technological 
compatibility of statistical data, to provide, in time, reliable 
statistics needed to support and monitor the economic cooperation 
between the Parties, the process of economic reforms in Russia, and 
to contribute to the development of private enterprises 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; 
exchange statistical information and to this end to build up 
and/or to make appropriate use of databases. 
k> 
Article 80 
Economics 
1. 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 31 
Money laundering 
1. The Parties agree on the necessity of making every effort and 
cooperating in order to prevent the use of their financial systems 
for laundering of proceeds from criminal activities in general and 
drug offences in particular. 
2. Cooperation in this area shall include administrative and technical 
assistance with the purpose of establishing suitable standards 
against money laundering equivalent to those adopted by the 
Community and international fora in this field, including the 
Financial Action Task Force (FATF). 
^2 
Article 82 
Drugs 
The Parties shall cooperate in increasing the effectiveness and 
efficiency of policies and measures to counter the illicit production, 
supply and traffic of narcotic drugs and psychotropic substances, 
including the prevention of diversion of precursor chemicals, as well 
as in promoting drug demand prevention and reduction. The cooperation 
in this area shall be based on mutual consultation and close 
coordination between the Parties over the objectives and measures in 
the various drug-related fields and shall, inter alia, provide for 
exchange of training programmes and include, where available, technical 
assistance from the community. 
Article 83 
Cooperation in the field of 
regulation of capital movements and payments in Russia 
Without prejudice to Article 52, the Parties, recognizing the necessity 
of a stable functioning and development of the Russian domestic 
currency market shall cooperate in the field of creation of an 
effective system of regulation of capital movements and payments in 
Russia. 
Bearing in mind the experience, competence and respective possibilities 
of the Member States and the Community, cooperation in this field 
supported by technical assistance from the Community shall cover inter 
alia: 
establishing links between competent authorities of the 
Community and its Member States and of Russia; 
exchanging information on a regular basis; 
helping in the development of appropriate regulations. 
In ord€!r 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. 
tf 
TITLE VIII: COOPERATION ON PREVENTION OF ILLEGAL ACTIVITIES 
Article 84 
The Parties shall establish cooperation aimed at preventing illegal 
activities such as: 
- illegal immigration and illegal presence of physical persons of 
their nationality on their respective territories, taking into 
account the principle and practice of readmission; 
illegal activities in the sphere of economics, including 
corruption; 
- illegal transactions of various goods, including industrial waste; 
- counterfeiting; 
- the illicit traffic of narcotic drugs and psychotropic substances. 
The cooperation in the abovementioned areas will be based on mutual 
consultations and close interactions and will provide technical and 
administrative assistance including: 
- drafting of national legislation in the sphere of preventing 
illegal activities; 
- creation of information centres; 
- increasing the efficiency of institutions engaged in preventing 
illegal activities; 
- training of personnel and development of research infrastructures; 
elaboration of mutually acceptable measures impeding illegal 
activities. 
Ç V 
TITLE IX: CULTURAL COOPERATION 
Article 35 
1. The parties undertake to promote cultural cooperation with the aim 
of reinforcing the existing links between their peoples and to 
encourage the mutual knowledge of their respective languages and 
cultures while respecting creative freedom and reciprocal access to 
cultural values. 
2. Cooperation shall cover in particular the following areas: 
- exchange of information and experience in the field of 
conservation and protection of monuments and sites 
(architectural heritage); 
cultural exchanges between institutions, artists and other 
persons working in the area of culture; 
translation of literary works. 
3. The Cooperation council may make recommendations for the 
implementation of this article. 
* ( 
TITLE X: FINANCIAL COOPERATION 
Article 36 
In order to achieve the objectives of this Agreement, in particular 
Titles VT and VII thereof, and in accordance with Articles 87, 88 and 
89 Russia shall benefit from temporary financial assistance from the 
Community by way of technical assistance in the form of grants to 
accelerate the economic transformation of Russia. 
Article 87 
This financial assistance shall be covered within the framework of the 
TACIS programme foreseen in the Community's relevant Council 
Regulation. 
Article 88 
The objectives and the areas of the Community's financial assistance 
shall be laid down in an indicative programme reflecting established 
priorities to be agreed between the two Parties taking into account 
Russia'3 needs, sectoral absorption capacities and progress with 
reform. The Parties shall inform the Cooperation Council thereof. 
Article 39 
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 organisations 
such as the International Bank for Reconstruction and Development and 
the European Bank for Reconstruction and Development. 
ÇV 
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 two 
Parties. 
Article 91 
1. The Cooperation council shall consist of the members of the Council 
of the European Union and members of the Commission -, of the 
European Communities, on the one hand, and of members of the 
Government of the Russian Federation, on the other. 
2. The Cooperation Council shall establish its rules of procedure. 
3. The office of President of the Cooperation Council shall be held 
alternately by a representative of the Community and by a member 
of the Government of the Russian Federation 
Article '?2 
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 shall ensure continuity between 
meetings of the Cooperation Council. 
53 
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. 
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. 
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. 
^a 
Article 98 
1. Within the scope of this Agreement, each Party undertakes to ensure 
that natural and legal persons of the other Party have access 
free of discrimination in relation to its own nationals to the 
competent courts and administrative organs of the Parties to 
defend their individual rights and their property rights, 
including those concerning intellectual, industrial and commercial 
property. 
2. Within the limits of their respective powers, the Parties: 
- shall encourage the adoption of arbitration for the settlement of 
disputes arising out of commercial and cooperation transactions 
concluded by economic operators of the Community and those of 
Russia; 
- agree that where a dispute is submitted to arbitration, each party 
to the dispute may, except where the rules of the arbitration 
centre chosen by the parties provide otherwise, choose its own 
arbitrator, irrespective of his nationality, and that the presiding 
third arbitrator or the sole arbitrator may be a citizen of a third 
State; 
- will recommend their economic operators to choose by mutual consent 
the law applicable to their contracts; 
shall encourage recourse to the arbitration rules elaborated by the 
United Nations Commission on International Trade Law (Uncitral) and 
to arbitration by any centre of a State signatory to the convention 
on Recognition and Enforcement of Foreign Arbitral Awards done at 
New York on 10 June 1958. 
Article 99 
Nothing in this Agreement shall prevent a Party from taking any 
measures 
1. which it considers necessary for the protection of its essential 
security interests: 
(a) to prevent the disclosure of information contrary to its 
essential security interests; 
(b) which relate to fissionable materials or the materials from 
which they are derived; 
(c) which relate to the production of, or trade in arms, munitions 
or war materials or to research, development or production 
indispensable for defence purposes, provided that such measures 
do hot 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 ha6 accepted for the purpose of 
maintaining peace and international security; or 
2. which it considers necessary to respect its international 
obligations and commitments or autonomous measures taken in line 
with such generally accepted international obligations and 
commitments in 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 cf residence. 
Article 101 
1. Eacn of the two Parties may refer to the Cooperation Council any 
dispute relating to the application or interpretation of this 
Agreement. 
2. The Cooperation Council may settle the dispute by means of a 
recommendation. 
3. In the event of it not being possible to settle the dispute in 
accordance with paragraph 2 of this Article, 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 the Member 
States shall be deemed to be one Party to the dispute. 
The Cooperation Council shall appoint a third conciliator. 
The conciliators' recommendations shall be taken by majority vote. 
Suci recommendations shall not be binding upon the Parties. 
4. The Cooperation Council may establish rules of procedure for 
disoute 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 Bhall In no way affect and are without 
prejudice to Articles 17, 18, 101 and 107. 
Article 103 
Treatment granted to Russia hereunder shall in no case be more 
favourable than that granted by the Member States to each other. 
Article 104 
For the; purposes of this Agreement, the term "Parties" shall mean 
Russia, of the one part, and the Community, or the Member States, or 
the Community and the Member states, in accordance with their 
respective powers, 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 Acreement is concluded for an initial period of 10 years. The 
Agreement shall be automatically renewed years by year provided that 
neither Party gives the other Party written notice of denunciation of 
the Agreement at least six months before it expires. 
Article 107 
1. The Parties shall take any general or specific measures required to 
fulfil their obligations under the Agreement. They shall see to it 
that the objectives set out in the Agreement are attained. 
2. If either Party considers that the other Party has failed to fulfil 
an obligation under the Agreement, it may take appropriate 
measures. Before so doing, except in cases of special urgency, it 
shall supply the cooperation Council with all relevant information 
required for a thorough examination of the situation with a view to 
see<ing a solution acceptable to the Parties. 
In the selection of these measures, priority shall be given to 
those which least disturb thé 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(4) rights for individuals 
and economic operators have been achieved hereunder, affect rights 
assured to them through agreements binding one or more Member states on 
the one hand and Russia on the other except in areas falling within 
community competence and without prejudice to the obligations of Member 
states resulting from this Agreement in areas falling within, their 
competence. 
Article 110 
This Agreement shall apply, on the one hand, to the territories in 
which the treaties establishing the European Community, the European 
Atomic Energy community and the European Coal and Steel 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, Italian, Spanish, Greek, Portuguese and Russian 
languages, each of these texts being equally authentic. 
Article 112 
This Agreement shall 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, paragraphs 1, 3 and 5, the Agreement 
between the European Economic Community, 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. 
(4) "Equivalent" will be translated into Russian as 
"Sootvetstvujuschie". 
a 
List of Annexes 
Annex 1 indicative list of advantages granted by Russia to the 
countries of the former USSR in areas covered by the 
present Agreement (as of January 1994). 
Annex 2 Derogations from Article 15 (quantitative restrictions). 
Annex 3 Community reservations in accordance with Article 28 
paragraph 2. 
Annex 4 Russian reservations in accordance with Article 28, 
paragraph 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 (Article 54) 
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 
7-Ï 
Annex 1 
indicative list of advantages granted by Russia to 
the countries of the former USSR in areas covered by the Present 
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 7AT is applied on import. 
No excise 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 kind of activities in banking and the 
financial sector (including establishment, operation) movement of 
capital and current payments, access to securities, etc. 
4. Price system regarding Russian export of some kinds of raw 
materials and semifinished products (coal, crude oil, natural gas, 
ref ined oil products) 
Prices are determined on the basis of correspondent average world 
price converted in roubles or respective national currency at a 
rate quoted by the Central Bank of Russia as of 15th date of a 
month previous to the month of exportation. 
5. Conditions of transportation and transit 
As regards CIS countries 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. 
é ° 
Annex 2 
Derogations from Article 15 (Quantitative Restrictions) 
1. Exceptional measures which derogate from the provisions of Article 
15 may be taken by Russia in the form of quantitative restrictions 
on a non-discriminatory basis as provided for in article XIII of 
the GATT. Such measures can only be taken after the end of the 
first calendar year following signature of the Agreement. 
2. These measures may only be taken in the circumstances mentioned in 
Annex 9. 
3. The total value of imports of goods which are subject to these 
measures may not exceed the following proportions of total imports 
of goods originating in the Community: 
10% during the second and third calendar years following 
signature of the Agreement; 
- 5% during the fourth and fifth calendar years following 
-signature of the Agreement; 
- 3% afterwards, until Russia's accession to the GATT/WTO. 
The abovementioned proportions will be determined by reference to 
the value of imports by Russia of goods originating in the 
Community during the last year prior to the introduction of 
quantitative restrictions for which statistics are available. 
These provisions shall not be circumvented by increased tariff 
protection on the imported goods concerned. 
4. These measures shall not be applied after Russia's accession to the 
GATT/WTO unless otherwise provided for in Russia's accession 
protocol to the GATT/WTO. 
5. Russia shall inform the Cooperation Committee of any measures it 
intends to take under the terms of the present Annex, and 
consultations shall be held in the Cooperation Committee if so 
requested by the Community on such measures before they are taken, 
and on the sectors to which they apply . 
Ç f 
Annex 3 
Community reservations in accordance with article 28 paragraph 2 
Mining 
In some Member States, a concession may be required for mining and 
mineral rights for non-EC 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 of the Community is restricted to 
fishing vessels flying the flag of a community Member state and 
registered in Community territory unless otherwise provided for. 
Real estate purchase 
In some Member States, the purchase of real estate is subject to 
limitations. 
Audiovisual services including radio 
NationaL treatment concerning production and distribution, including 
broadcasting and other forms of transmission to the public, may be 
reserved to audiovisual works meeting certain origin criteria. 
Telecommunications services including mobile and satellite services 
Reserved services. 
In some Member States market access concerning complementary services 
and infrastructures is restricted. 
Professional services 
Services reserved to natural persons nationals of Members states. Under 
certain conditions those persons may create companies. 
Agriculture 
In some Member States national treatment is not applicable to non-EC 
control Led companies which wish to undertake an agricultural 
enterprise. The acquisition of vineyards by non-EC controlled 
companies is subject to notification, cr, as necessary, authorisation. 
News agency services 
In some Member States limitations of foreign participation in 
publishing companies and broadcasting companies. 
G 
Annex 4 
Russian reservations in accordance with Article 28, Paragraph 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 
Authorisation 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 
recognised as buyers in accordance with the Law of the Russian 
Federation on the privatisation of state and municipal enterprises 
in the Russian Federation and other respective legislation and 
regulations, including the requirements of programs of 
privatisation: 
within the framework of the privatisation of state and 
municipal enterprises in the form of commercial investment 
tender and auction; ' 
within the framework of the expansion and additional 
construction of enterprises in the form of commercial 
investment tender and auction; 
Telecommunications 
Telecommunication services including mobile and satellite services, 
construction, installation, operation and maintenance of communication 
devices is restricted. 
Mass media services 
Some limitations of foreign participation in mass media companies. 
Profess ional 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 non-Russian controlled companies 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 hard currency. 
£ * 
Annex 5 
Cross-border supply of services 
List of services for which the Parties shall grant MFN treatment 
(a) Sectors to be covered, according to the provisional central Product 
Classification (CPC) of the United Nations organisation: 
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 \ 
Advisor;/ and consulting services relating to mining 
Printing and publishing CPC 88442 
Convention services 
Translation services CPC 87905 
Interior design services CPC 87907 
Telecommunications : 
Value added services 'including (but not limited to) Electronic Mail, 
Voice Mail, On-line information and 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, 33109) 
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 
service 3 
fy 
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 there from; 
(ii) goods in international transit; and 
(iii) accident and health insurance;and personal motor liability 
insurance in the case of the cross-border movement. 
(b) Data processing services CPC 843 
Provision and transfer of financial information and financial data 
processing (see paras. 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. 
G S 
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. Ban<ing 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. 
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. 
£ É 
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 
pub Lie entities. 
(c) Activities forming part of a statutory system of social security or 
pubLie retirement plans, except when those activities may be 
carried out by financial service suppliers in competition with 
pub Lie entities or private institutions. 
0-
Annex 7 
Financial Services 
In respect of banking services referred to in Annex 6, part B, the 
most favoured nation treatment granted under Article 28, paragraph 
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, paragraph 3, by Russia means treatment no less 
favorable 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 55.000 ECU for 
balances on accounts of each physical person with Russian 
subsidiaries of Community companies; 
e. to prohibit Russian subsidiaries of community companies 
from carrying out transactions with shares and instruments 
convertible into shares of Russian joint stock companies; 
f. to prohibit Russian subsidiaries of Community companies 
from carrying out transactions with Russian residents; 
2. The exceptions in paragraph 1 may only apply under the 
following conditions 
(i) provided that they are applied to subsidiaries of 
companies of every country, and 
(ii) for the exceptions mentioned in paragraph 1, 
subparagraphs c, d and e, 
(a) until the expiry of .-five years from signature of the 
Agreement at the latest for the exceptions mentioned 
in subparagraphs c and d and three years for the 
exception mentioned in subparagraph e, and 
68 
(b) where the proportion of the share capital of the 
Russian subsidiary of the Community company held by 
Russian nationals or companies does not exceed fifty 
percent (50%), and 
(c) to Russian subsidiaries of community companies 
established after the entry into force of these 
exceptions; 
(iii) for the exception mentioned in paragraph 1, sub paragraph 
f, until 1st January 1996 and only to Russian 
subsidiaries of Community companies established after 
15th November 1993 or which have not commenced their 
operations with Russian residents before 15th November 
1993. 
3. a. After the expiry of five years from the date of signature 
of the Agreement, Russia will consider the possibility of: 
(i) increasing the ceiling limiting the overall share of 
foreign capital in the Russian banking system which 
is in operation on the date of the signature of this 
Agreement, mentioned in subparagraph a of Paragraph 
1, taking into consideration all the relevant 
monetary, fiscal, financial and balance of payments 
considerations and the state of the banking system of 
Russia; 
(ii) reducing the minimum capital requirement, mentioned 
in subparagraph b of Paragraph 1, taking into 
consideration all the relevant monetary, fiscal, 
financial and balance of payments considerations and 
the state of the banking system of Russia. 
b. After the expiry of three years from the signature of this 
Agreement, Russia will consider the softening of 
restrictions mentioned in subparagraphs c and d of 
Paragraph 1, taking into consideration all the relevant 
monetary, fiscal, financial and balance of payments 
considerations and the state of the banking system of 
Russia. 
B. In respect of insurance services referred to in Annex 6, part A, 
paragraphs 1 and 2 the most favoured nation treatment granted under 
Article 28, paragraph 1 with regard to establishment by means of 
the setting up of a subsidiary only authorised for the insurance 
operations is set out in the legislation and regulations applicable 
in Russia on the day of establishment taking into account the 
fol Lowing conditions: 
69 
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 percent 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 EC 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, paragraph 2, and shall not nullify or 
substantially impair the effects of the abolition of the 
maximum foreign shareholding limit of 49%. 
7,n 
Annex 8 
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 
- 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 nor be affected by the said 
adjustments. 
Part B 
1. Acting in the spirit of partnership and cooperation the Government 
of Russia shall inform the Community, during a transitional period 
of three years following the signature of the Agreement, of its 
intentions to submit new legislation or adopt new regulations which 
may render the conditions for the establishment or operation of 
Russian subsidiaries and branches of Community companies more 
restrictive than the situation existing on the day preceding the 
date of signature of the Agreement. The Community may request 
Russia to communicate the drafts of such legislation or regulations 
and to enter into consultations about those drafts. 
2. Where new legislation or regulations introduced in Russia within 
the transitional period mentioned in paragraph 1 would result in 
rendering the conditions for operation of Russian subsidiaries and 
branches of Community companies more restrictive than the situation 
existing on the day of signature of the Agreement, such respective 
legislation or regulations shall not apply to those subsidiaries 
and branches already established in Russia at the time of entry 
into force of the relevant act, until the expiry of a period of 
three years from such entry into force. 
71 
Annex 9 
Transitional period for provisions on competition and for 
the introduction of quantitative restrictions 
The circumstances mentioned in Article 53, paragraph 2.3 and in Annex 
2, paragraph 2 are understood in respect of sectors of the Russian 
economy which: 
- are undergoing restructuring, or 
- are facing serious difficulties, particularly where these entail 
serious social problems in Russia, or 
- face the elimination or a drastic reduction of the total market 
share held by Russian companies or nationals in a given sector or 
industry in Russia, or 
- are newly emerging industries in Russia. 
n 
Annex 10 
Protection of Intellectual, industrial and commercial Property 
(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 
Memoer 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, 1991). 
3. The Cooperation Council may recommend that paragraph 2 of this 
Annex shall apply to other multilateral conventions. 
4. From the entry into force of this Agreement Russia shall grant to 
Community companies and nationals, in respect of the recognition 
and protection of intellectual, industrial and commercial property, 
treatment no less favourable than that granted by it to any third 
country under bilateral agreements. 
5. The provisions of paragraph 4 shall not apply to advantages granted 
by Russia to any third country on an effective reciprocal basis and 
to advantages granted by Russia to another country of the former 
.USS*. 
"71 
PROTOCOL 1 
ON THE ESTABLISHMENT OF A COAL AND STEEL CONTACT 
GROUP 
1. A contact Group is established between the Parties. The Group is 
composed of representatives of the Community and of Russia. 
2. The Contact Group exchanges information on the situation of the 
coal and steel industries in both territories and on trade between 
them, particularly with the purpose of identifying such problems as 
might arise. 
3. The Contact Group also examines the situation of the coal and steel 
industries at world level, including developments in international 
trade. 
4. The Contact Group exchanges all useful information on the structure 
of the industries concerned, the development of their production 
capacities, the science and research progress in the relevant 
fields, and the evolution of employment. The Group also examines 
polLution and environmental problems. 
5. The Contact Group also examines the progress made in the framework 
of technical assistance between the Parties, including assistance 
to financial, commercial and technical management. 
6. The Contact Group exchanges all relevant information as to 
attitudes taken, or to be taken, in the appropriate international 
organisations 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 Government of the Russian Federation and a 
representative of the Commission of the European Communities. 
74 
PROTOCOL 2 
ON MUTUAL ADMINISTRATIVE ASSISTANCE FOR THE CORRECT APPLICATION OF 
CUSTOMS LEGISLATION 
ARTICLE 1 
Definitions 
For the purposes of this Protocol: 
a) "customs legislation" shall mean provisions applicable in the 
territories of the Parties governing the import, export, transit of 
goods and their placing under any customs procedure, including 
measures of prohibition, restriction and control adopted by the 
Parties. 
b) "customs duties" shall mean all duties, taxes, fees or any other 
charges which are levied and collected in the territories of the 
Parties, in application of customs legislation, but not including 
fees and charges which are limited in amount to the approximate 
costs of services rendered; 
c) "applicant authority", shall mean a competent administrative 
authority which has been appointed by a Party for this purpose and 
which makes a request for assistance in customs matters; 
d) "requested authority", shall mean a competent administrative 
authority which has been appointed by a Party for this purpose and 
which receives a request for assistance in customs matters; 
e) "contravention", shall mean any violation of the customs 
legislation as well as any attempted violation of such legislation. 
ARTICLE 2 
Scope 
1. The Parties shall assist each other, 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. 
7S 
ARTICLE 3 
Assistance on request 
1. At the request of the applicant authority, the requested authority 
shall furnish it with all relevant information to enable it to 
ensure that customs legislation is correctly applied, including 
information regarding operations detected or planned which are, 
appear or would be in contravention of such legislation. 
2. At the request of the applicant authority, the requested authority 
shall inform it whether goods exported from the territory of one of 
the Parties have been properly imported into the territory of the 
other Party, specifying, where appropriate, the customs procedure 
appLied to the goods. 
3. At the request of the applicant authority, the requested authority 
shaLl take the necessary steps to ensure that a surveillance is 
kept on : 
(a) natural or legal persons of whom there are reasonable grounds 
for believing that they are contravening or have contravened 
customs legislation; 
(b) places where stocks of goods have been assembled in such a way 
that there are reasonable grounds for supposing that they are 
intended as supplies for operations contrary to the customs 
legislation of the other Party; 
(c) movements of goods notified as possibly giving rise to 
contraventions of customs legislation; 
(d) means of transport for which there are reasonable grounds for 
believing that they have been, are or may be used in the 
contravening of customs legislation. 
ARTICLE 4 
Spontaneous assistance 
The Paities 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. 
76 
ARTICLE 5 
Form and substance of requests for assistance 
1. Requests pursuant to the present Protocol shall be made in writing. 
Documents necessary for the execution of such requests shall 
accompany the request. When required because of the urgency of the 
situation, oral requests may be accepted, but must be confirmed in 
writing immediately. 
2. Requests pursuant to paragraph 1 of this Article shall include the 
folLowing information: 
(a) the applicant authority making the request; 
(b) the measure requested; 
(c) the object of and the reason for the request; 
(d) the laws, rules and other legal elements involved; 
(e) indications as exact and comprehensive as possible on the 
natural or legal persons being the target of the 
investigations; 
(f) a summary of the relevant facts. 
3. Requests shall be submitted in an official language of the 
requested authority or in a language acceptable to such authority. 
4. If a request does not meet the formal requirements, its correction 
or completion may be demanded; the ordering of precautionary 
measures may, however, take place. 
ARTICLE 6 
Execution of requests 
1. Requests for assistance will be executed in accordance with the 
laws, rules and other legal instruments of the requested Party. 
2. In order to comply with a request for assistance, the requested 
authority shall proceed, within its competence and available 
resources, as though it were acting on its own account or at the 
request of other authorities of that same Party, by supplying 
information already possessed, by carrying out appropriate 
enquiries or by arranging for them to be carried out. 
77 
3. Duly authorized officials of a Party may, with the agreement of the 
other Party involved and within the conditions laid down by the 
latter, obtain from the offices of the requested authority or other 
authority for which the requested authority is responsible, 
information relating to the contravention of customs legislation 
which the applicant authority needs for the purposes of this 
Protocol. 
4. Officials of a Party may, in particular cases, with the agreement 
of the other Party involved and within the conditions laid down by 
the latter, be present at enquiries carried out in the latter's 
territory. 
5. When, in the circumstances provided for under this Protocol, 
officials of one Party are present at enquiries carried out in the 
territory of the other Party, they must, at all times, be able to 
furnish proof of their official capacity. They must not wear 
uniform nor carry arms. 
ARTICLE 7 
Form in which information is to be communicated 
1. Under the conditions and within the limits laid down in this 
Protocol, the Parties shall communicate each other information in 
the form of documents, certified copies of documents, reports and 
the like. 
2. Original files and documents may be transmitted on request only in 
cases where certified copies would be insufficient. Those files and 
documents shall be returned at the earliest opportunity. 
3. The documents provided for in paragraph 1 may be replaced by 
computerized information produced in any form for the same purpose. 
All relevant information for the utilization of the material shall 
be supplied on request. 
ARTICLE 8 
Exceptions to the obligation to provide assistance 
1. The Parties may refuse to give assistance as provided for in this 
Protocol, provide it partially or provide it subject to certain 
conditions or requirements, where to do so would: 
(a) be likely to prejudice sovereignty, public policy, security or 
other essential interests; or 
(b) violate an industrial, commercial or professional secret. 
78 
2. Where the applicant authority asks for assistance which it would 
itself be unable to provide if asked so by another Party, it shall 
draw attention to that, fact in its request. It shall then be left 
to the requested authority to decide how to respond to such a 
request. 
3. If assistance is withheld or denied, the decision and the reasons 
therefore must be notified in written form to the applicant 
authority without delay. 
ARTICLE 9 
Obligation to observe confidentiality 
1. Any information communicated in whatsoever form pursuant to this 
Protocol shall be of a confidential nature. It shall be covered by 
the obligation of official secrecy and shall enjoy the protection 
extended to like information under the relevant legislation 
applicable in the Party which received it and the corresponding 
provisions applying to the Community institutions. 
2. Nominative data shall not be transmitted whenever there are 
reasonable grounds to believe that the transfer or the use made of 
the data transmitted would be contrary to the basic legal 
principles of one of the Parties, and, in particular, if the person 
concerned would suffer a prejudice in 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 
ach ieved. 
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 
sucn information only upon previous authorisation 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. Witnout 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. 
79 
ARTICLE LP 
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 L1 
Experts and witnesses 
An offi.cial 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 matter and by virtue of what title or 
qualification the official will be questioned. 
ARTICLE L2 
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. 
80 
ARTICLE 13 
Implementation 
1. The management of this Protocol shall be entrusted to the central 
customs authorities of Russia on the one hand and the competent 
services of the Commission of the European Communities and, where 
appropriate, the customs authorities of the EC Member States 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 thé provisions of this Protocol. 
ARTICLE 14 
Complementarity 
1. This Protocol shall complement and not impede application of any 
agreements on mutual assistance which have been concluded between 
individual or several Member States of the European Community 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. 
?/ 
List of declarations and letters 
Joint declaration in relation to Title III and article 94 
joint declaration in relation to article 10 
Joint declaration in relation to article 12 
joint declaration in relation to article 17 
Joint declaration in relation to article 18 
Exchange of letters in relation to article 18 
Exchange of letters in relation to article 22 
Joint declaration in relation to article 22, paragraph 1 second indent 
Joint declaration in relation to article 24 
Joint declaration in relation to articles 26, 32 and 37 
Joint declaration in relation to article 28 
Joint declaration in relation to article 29(3) 
Exchange of letters in relation to article 29 
Joint declaration in relation to article 30 
Joint declaration in relation to article 30 a) and g) 
Joint declaration in relation to the notion of "control" in article 
30(b) and article 45 
Joint declaration in relation to article 30(h), 3rd subparagraph 
Joint declaration in relation to article 31 
Declaration by Russia in relation to article 34, paragraph 1 
Joint declaration in relation to articles 34 and 38 
Joint declaration in relation to article 35 
Community declaration in relation to article 36 
Declaration by Russia in relation to article 36 
Joint declaration in relation to article 39(2c), 2nd subparagraph on 
opening ports 
Joint declaration in relation to article 39(2c), 2nd subparagraph on 
vessels under a third flag 
Joint declaration in relation to article 44 
Joint declaration in relation to article 46 (2) 
Joint declaration in relation to article 48 
Exchange of letters in relation to article 52 
Joint declaration in relation to article 52 
Joint declaration in relation to article 53(2.2) 
Joint declaration in relation to article 54 
Community declaration in relation to article 54 
Joint declaration in relation to article 99 
Joint declaration in relation to article 101 
Joint declaration in relation to article 107 
Joint declaration in relation to article 107 (2) 
Joint declaration in relation to articles 2 and 107 
Joint declaration in relation to article 112 
Joint declaration in relation to article 6 of Protocol 2 
Exchange of letters on the consequences of enlargement (outside the 
agreement) 
Exchange of letters on Uruguay Round (outside the agreement) 
82 
Joint declaration in relation to Title III and article 94 
For the purpose of Title III and Article 94, the GATT is understood to 
be the General Agreement on Tariffs and Trade signed in Geneva in 1947 
as amended, as applied at the date of signature of the present 
Agreement, if the Parties do not agree otherwise within the framework 
of the Cooperation Council established under Article 90. 
Joint declaration in relation to article 10 
The Parties agree, that the provisions of paragraph 1 of Article 10 
shall not apply to conditions of import of products to the territory of 
Russia under financial loans and credits granted for development and 
humanitarian purposes, technical and humanitarian assistance and other 
similar arrangements, concluded between Russia and third states or 
international organisations in so far as such states or international 
organisations require special treatment for such imports. 
Joint declaration in relation to article 12 
Article 12, within Title III on trade in Goods, deals with the question 
of transit. It is the understanding of the Parties that Article 12 
deals exclusively with the freedom of transit of goods. This is 
according to normal GATT practice. The issue of transit may be taken up 
in the future negotiations on Transport Agreements as indicated in 
Article 43. 
Joint declaration in relation to article 17 
The Community and Russia declare that the text of the safeguard clause 
(Article 17) does not grant GATT safeguard treatment. 
Joint declaration in relation to article 18 
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. 
Exchange of letters in relation to article 18 
It is understood that the provisions of this article and respective 
declaration are neither intended to, nor shall, slow down, hinder or 
impede the procedures provided for in the respective legislations of 
the Parties regarding antidumping and subsidies investigations. 
•\r n 
Exchange of letters in relation to article 22 (nuclear trade) 
sir. 
The purpose of this letter is to confirm that with regard to trade in 
nuclear materials as covered by Article 22 of the Partnership and 
Cooperation Agreement 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 recognises that 
intention. The Russian Government takes note that the Community 
considers Russia, in particular for the purposes of its supply policy 
in the nuclear field, as a source of supply which is separate and 
distinct from other suppliers. 
In order to avoid any difficulties in trade, consultations shall be 
held regularly or on request on developments in the trade of nuclear 
materiaLs between Russia and the Community. These consultations could 
include a continuous and regular dialogue on market developments and 
forecasts. 
The consultations shall be held within the framework of Article 92. 
As provided in Article 13 of the Partnership and Cooperation Agreement 
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 commitment 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. 
Joint declaration in relation to article 22, paragraph 1 
second indent 
With respect to the community the legislation and regulations, referred 
to in Art. 6 of the 1989 Agreement, include, inter alia, the Treaty 
establishing the European Atomic Energy Community and implementing 
regulations thereof, in particular the provisions of those texts, which 
specify the rights, powers and responsibilities of the EURATOM Supply 
Agency and of the Commission of the European Communities. 
& 
Joint declaration in relation to article 24 
It is understood that the notion "members of their family" is defined 
in accordance with the national legislation of the host country 
concerned. 
Joint declaration in relation to articles 26, 32 and 37 
The Parties to the Agreement shall ensure that the issuing of visas and 
residents permits in conformity with the laws and regulations of Russia 
and the Member states respectively are 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 Russia and in the Member states. 
Such efforts shall apply in particular to key personnel referred to in 
Article 32 and to the sellers of cross-border services referred to in 
Article 37, and ensure that the administrative procedures do not 
nullify or impair the benefits accruing to any Party under these 
Articles of the Agreement. 
The Parties agree that an important element in this context is the 
timely conclusion of re-admission agreements between the Member States 
and Russia. 
The Cooperation Council shall regularly review the evolution of the 
situation in these areas. 
Joint Declaration in relation to article 28 
Without prejudice to the provisions of Articles 50 and 51, the Parties 
agree that the words "in conformity with ... legislation and 
regulations" mentioned in paragraphs 1 and 4 of Article 28 mean that 
each Party may regulate the establishment of companies by means of 
setting up subsidiaries and branches as defined in Article 30 and the 
operation of branches provided that this legislation and regulations do 
not create reservations to the treatment no less favourable than that 
accorded to companies or branches of any third country respectively. 
Without prejudice to the reservations listed in Annexes 3 and 4 and to 
the provisions of Articles 50 and 51, the Parties agree that the words 
"in conformity with ... legislation and regulations" mentioned in 
paragraphs 2 and 3 of Article 28 mean that each Party may regulate the 
operation of companies on its territory, provided that this legislation 
and regulations do not create for the operations of companies of the 
other Party any new reservations to the treatment no less favourable 
than that accorded to their own companies or to subsidiaries of 
companies of any third country whichever is the better. 
? f 
Joint declaration in relation to article 29 paragraph 3 
The Parties confirm that nothing in Article 29 paragraph 3 prevent 
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 
Exchange of letters in relation to article 29 
(conditions of establishment and operations in banking and 
insurance services) 
Letter from Russia 
Dear Sir, 
I refer to the Partnership and Cooperation Agreement initialled today. 
I confirm our understanding that the provisions of the Agreement 
concerning conditions of establishment and operation of community 
companies in Russia were agreed between us and that signature shall go 
ahead on that basis provided that Russia would not adopt before the 
signature of the Agreement new measures or regulations which would 
introduce or worsen discrimination vis à vis Russian companies as 
compared to the situation existing on today's date as regards 
conditions affecting the establishment and operation of Russian 
subsidiaries of Community companies in Russia with the exception of 
those which comply with sub-paragraphs- (d) and/or (e) of paragraph 1 
Part A, and/or paragraph 2 of Part B of Annex 7. 
I would be obliged if you would confirm the agreement of the Community 
to the content of this letter. 
U 
Joint Declaration in relation to article 30 
The Parties confirm the importance of ensuring that the granting of 
licences referred to in Article 30, paragraphs (a) and (g) of this 
Agreement: 
- shall be based on objective and transparent criteria, such as 
competence and the ability to supply the service; 
- shall not be more burdensome than necessary to ensure the 
quality of the service; 
shall not in itself constitute a restriction on the supply of 
the service." 
Joint declaration in relation to Article 30 a) and g) 
Article 30 a), second paragraph and g), second paragraph take into 
account the specificity of access to financial services as it is agreed 
in the framework of this Agreement, and do not affect the definitions 
of "establishment" and "operation" as they apply to financial services 
for other purposes than the purpose of this Agreement. 
Joint Declaration in relation to the notion of "control" 
in 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 . 
Joint Declaration in relation to article 30 (h), 3rd 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 organisation of,such operations. 
s> 
Joint Declaration in relation to article 31 
The provisions of Article 31 permit the Parties to apply any measure 
intended to prevent circumvention by a company of a third country of 
the measures of the Parties concerning establishment of companies of 
that third country in its territory by means of any possibility 
provided for in this Agreement. 
Joint declaration in relation to Article 34, paragraph 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 this paragraph. 
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. 
Joint declaration in relation to article 35 
The Parties agree that the activities referred to in subparagraphs (a) 
and (b) do not include acting as a carrier. 
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. 
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 a 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 supply services or entering into agreements to sell cross-border 
services for that company. 
rf 
Joint declaration in relation to Article 39, para 2 (c), 2nd subpara. 
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 to this Agreement consider that the 
degree of openness of ports to foreign vessels is an essential feature 
of an assessment of the conditions necessary for the free supply of 
services in international maritime transport. They therefore undertake 
to review the situation regarding ports open to foreign vessels at 
least every two years through consultations to be held in the framework 
of the Cooperation Council. If serious difficulties arise in 
maintaining a port open to foreign vessels, the Party in whose 
territory the port concerned is situated shall inform the other Party; 
at the request of the latter, consultations shall be held so as to 
ensure that any action taken affects as little as possible the free 
supply of international maritime services. 
Joint declaration in relation to article 39.2(c), 2nd subpara. 
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), 2nd subpara to vessels under a 
third flag operated by shipping companies or nationals of a Member 
State or Russia respectively. 
Joint declaration in relation to article 44 
For the purposes of this Agreement, an economic integration agreement 
shall be an agreement in accordance with thes principles set out in 
Article V of the General Agreement on Trade in services ("GATS"). In 
respect of any aspect of this Agreement covering areas other than 
service activities an economic integration agreement shall be an 
agreement in accordance, with the principles set out in Article XXIV of 
the GATT on the creation of free trade areas or customs unions. 
Joint declaration in relation to article 46 (2) 
The Parties confirm their mutual understanding that the question of 
whether activities are connected, even occasionally, with the exercise 
of official authority in their respective territories, depends upon the 
circumstances of each particular case. An examination, in each 
particular case, whether such activities are connected with 
- the right to use physical constraint; or 
- the exercise of judicial functions; or 
the right unilaterally to enact binding regulations 
will help to determine the answer to such questions. 
Joint declaration in relation to article 48 
The sole fact of requiring a visa for natural persons of certain 
Parties and not for those of others shall not be regarded as nullifying 
or impairing benefits under a specific commitment. 
Exchange of letters in relation to article 52 
Letter from Russia 
With reference to Article 52 of the Partnership and Coopération 
Agreement, 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, nationalisation 
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. 
7* 
Joint Declaration in relation to Article 52 (Definitions) 
"Current payments*' 
"Current payments" are payments connected with the movement of goods, 
services or persons made in accordance with normal international 
business practice and do not cover arrangements which materially 
constitute a combination of a current payment and a capital 
transaction, such as deferrals of payments and advances which is meant 
to circumvent respective legislation of the Parties in this field. 
This definition does not preclude Russia from applying or enacting 
legislation which lays down that such payments must be carried out 
through those Russian banks which have received the respective licences 
from the central Bank of the Russian Federation to carry out such 
operations in freely convertible currencies. 
"Direct investment" 
"Direct Investment" is an investment for the purpose of establishing 
lasting economic relations with an enterprise such as investments which 
give the possibility of exercising an effective influence on the 
management thereof, in the country concerned by non-residents or abroad 
by residents, by means of: 
1. Creation or extension of a wholly owned enterprise, a subsidiary or 
a branch, acquisition of full ownership of an existing enterprise; 
2. Participation in a new or existing enterprise; 
3. A loan of five years or longer. 
"Freely convertible currency" 
"A freely convertible currency" is any currency considered as such by 
the International Monetary Fund. 
Joint Declaration in relation to Article 53(2.2) 
"Primary products" are those defined as such in the GATT. 
Joint declaration in relation to article 54 
The Parties agree that for the purpose of the Agreement, intellectual, 
industrial and commercial property includes in particular copyright, 
including the copyright of computer 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. 
91 
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. 
Joint declaration in relation to article 99 
The Parties agree that the measures provided for in Article 99 shall 
not be taken with the aim to distort conditions of competition in 
relevant markets and thus to afford protection to domestic production. 
Joint déclaration in relation to article 101 
The Parties invite the Cooperation Council to examine forthwith the 
rules of procedure that may be useful for dispute settlement under this 
Agreement. 
Joint Declaration in relation to article 107 
The Parties agree, by common consent, for the purpose of its correct 
interpretation and its practical application. that the terms "cases of 
special urgency" included in Article 107 of the Agreement mean cases of 
material breach of the Agreement by one of the Parties. A material 
breach of the Agreement consists in 
(a) repudiation of the Agreement not sanctioned by the general rules of 
international law 
or 
(b) violation of the essential element of the Agreement set out in 
Article 2. 
Joint declaration in relation to article 107 paragraph 2 
The Parties agree that "appropriate measures" referred to in Article 
107 paragraph 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 paragraph 2, the other Party may avail itself of 
the procedure provided for in Article 101. 
^2 
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 11 May 1992 declaration of the Council which provides for 
the inclusion of this reference in cooperation or association 
agreements between the community and its CSCE partners, as well as 
Russia's policy in this field and 
- the attachment of both Parties to the relevant obligations, arising 
in particular from the Helsinki Final Act and the charter of Paris 
for a new Europe. 
Joint declaration in relation to article 112 
The Parties confirm that although the present Agreement replaces the 
Agreement of 18 December 1989 regarding relations between the Parties, 
the Agreement shall not prejudice or otherwise affect any measures 
taken before the entry into force of the present 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. 
93 
Joint Declaration in relation to article 6 of Protocol 2 
1. The Parties agree to take the necessary measures in order to assist 
each other, as provided for in this Protocol and without delay, for 
the following movements of goods: 
a) movement of arms, ammunition, explosives and explosive devices; 
b) movement of objects of art and antiquity, which present 
significant historical, cultural or archaeological value for 
one of the Parties; 
c) movement of poisonous goods as well as the substances dangerous 
for the environment and the public health; 
d) movement of sensitive and strategic goods subject to non-tariff 
limitations in accordance with the lists agreed upon by the 
Parties. 
2. The Parties agree, if permitted by the basic principles of their 
respective legal systems, to take the necessary measures to allow 
the appropriate use of the controlled delivery technique on the 
basis of mutually agreed implementing provisions adopted by them in 
accordance with the procedures of this Protocol. 
3. The Parties agree to take all necessary measures, in accordance 
with their respective legislation, in order: 
- to deliver all documents, 
- to notify all decisions, 
falLing within the scope of this Protocol to an addressee, residing 
or established in their respective territories on the basis of 
mutually agreed implementing provisions adopted by them in 
accordance with the procedures of this Protocol. In such a case 
Article 5 (3) is applicable. 
4. The Parties agree that when the requested authority cannot act on 
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. 
94 
outside the Agreement: 
Exchange of letters on the consequences of enlargement 
Letter from the community 
Dear Sir, I refer to the Agreement on Partnership and cooperation 
signed today and confirm that if any amendment to this agreement might 
became necessary as a result of an enlargement of the Community, this 
would become the subject of consultations between the Parties pursuant 
to Article 90 and in this context account would be taken, to the extent 
possible, of the character of bilateral trade and economic relations 
between Russia and acceding States. 
I would be obliged if you could confirm the agreement of Russia to the 
content of this letter. 
Exchange of letters on Uruguay Round 
Letter from the Community 
Dear Sir, I refer to the Agreement on Partnership and Cooperation 
signed today and confirm our agreement that one change of 
circumstances, within the meaning of Article 4 of the Agreement, where 
it would be appropriate to examine whether amendments should be made to 
the Agreement, would be the situation arising upon the entry into force 
of the Uruguay Round multilateral agreements and the conclusion of 
amendments to the GATT, its codés and other agreements relating 
thereto. 
I would be obliged if you could confirm the agreement of Russia to the 
content of this letter. 
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