Modified Proposal for a COUNCIL DECISION on the signing of an Agreement on a Multilateral Nuclear Environmental Programme in the Russian Federation and its Protocol on Claims, Legal Proceedings and Indemnification

(presented by the Commission)

EXPLANATORY MEMORANDUM

On 10 April 2000, the General Affairs Council of the European Union adopted a decision directing the Commission to negotiate an agreement on a Multilateral Nuclear Environmental Programme in the Russian Federation between certain Western donors, including the European Community and Euratom, and the Government of the Russian Federation pursuant to Article 181a (3) 2nd sentence in conjunction with Article 300 (2) 1st sentence of the EC Treaty (doc. 7395/00 NIS 41 ATO 28).

The negotiations between Western donors [1], including the European Commission, and the Russian side were completed on 21 March 2003 and the resulting text complies with the negotiating directives the Council issued to the Commission.

[1] Western donors involved in the negotiations were Finland, France, Germany, the Netherlands, Norway, Sweden, United Kingdom, Belgium, US and the European Commission.

The "Agreement on a Multilateral Nuclear Environmental Programme in the Russian Federation" and the "Protocol on Claims, Legal Proceedings and Indemnification" will be opened for signature at the Swedish Ministry for Foreign Affairs in Stockholm on 21 May 2003.

The Agreement establishes a legal framework to facilitate co-operation in the sectors of, inter alia, safety of spent nuclear fuel, radioactive waste management and the decommissioning of nuclear submarines and icebreakers in the Russian Federation. The principal objective of the Agreement, which has no financial implications at all, is to provide Western donors parties to the Agreement with a coherent and comprehensive legal framework for implementing nuclear-related projects in the Russian Federation, so that individuals, society and the environment are protected from harmful effects of ionising radiation.

The Agreement is for Western donors a necessary pre-condition to start the implementation of urgent projects included in existing bilateral and multilateral assistance programmes such as the Nuclear Window of the Northern Dimension Environmental Partnership (NDEP) Support Fund. The NDEP and other assistance programmes in the Russian Federation will directly contribute to the achievement of the objectives of the G8 Global Partnership Against the Spread of Weapons and Material of Mass Destruction, initiative launched at the June 2002 Kananaskis G8 Summit.

The Agreement is associated with a separate Protocol on Claims, Legal Proceedings and Indemnification, whose provisions aim at ensuring that claims against the Contributing Parties and their personnel or contractors, subcontractors, consultants, suppliers or sub-suppliers of equipment, goods or services at any tier and their personnel, for any loss or damage of whatsoever nature arising from activities undertaken pursuant to the Agreement are not brought by the Russian Party and, if brought by a third party, are indemnified by the Russian Party.

The Commission calls on the Council to adopt the annexed proposal approving the signature of the framework agreement and of its additional protocol on claims, legal proceedings and indemnification.

Modified Proposal for a COUNCIL DECISION on the signing of an Agreement on a Multilateral Nuclear Environmental Programme in the Russian Federation and its Protocol on Claims, Legal Proceedings and Indemnification

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 181a (3) 2nd sentence, in conjunction with Article 300 (2) 1st sentence thereof,

Having regard to the proposal from the Commission,

Whereas:

(1) The Commission has participated on behalf of the Community in the negotiations on an Agreement on a Multilateral Nuclear Environmental Programme in the Russian Federation and a Protocol on Claims, Legal Proceedings and Indemnification with the Russian Federation.

(2) Subject to its possible conclusion at a later date, the Agreement and the Protocol should be signed,

(3) The Commission and the Member States concerned shall coordinate their positions prior to the meetings of the MNEPR Committee

HAS DECIDED AS FOLLOWS:

Article 1

Subject to a possible conclusion at a later date, the President of the Council is hereby authorised to designate the person empowered to sign, on behalf of the European Community, the Agreement on a Multilateral Nuclear Environmental Programme in the Russian Federation and a Protocol on Claims, Legal Proceedings and Indemnification.

The texts of the Agreement and of the Protocol are attached to this Decision in the three original linguistic versions (English, French and Russian).

Article 2

The Commission shall represent the Community in the Committee referred to in Article 4 of the Agreement on a Multilateral Nuclear Environmental Programme in the Russian Federation and a Protocol on Claims, Legal Proceedings and Indemnification.

Article 3

Pending the entry into force of the Agreement on Multilateral Nuclear Environmental Programme in the Russian Federation and its Protocol on Claims, Legal Proceedings and Indemnification they shall be applied on a provisional basis from the date of their signature.

Done at Brussels,

For the Council

The President