Protocol on Claims, Legal Proceedings and Indemnification to the Framework Agreement on a Multilateral Nuclear Environmental Programme in the Russian Federation
Date: 2003-05-21
Institutions: Belgium, Denmark, European Atomic Energy Community, European Community, Finland, France, Germany, Netherlands, Norway, Russia, Sweden, United Kingdom, United States
Subjects: Russia, claim, framework agreement, indemnification, judicial proceedings, multilateral agreement, nuclear accident, nuclear policy, nuclear safety, protocol to an agreement

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on Claims, Legal Proceedings and Indemnification to the Framework Agreement on a Multilateral Nuclear
Environmental Programme in the Russian Federation

PROTOCOL

The Government of the Kingdom of Belgium, the Government of the Kingdom of Denmark, the Government of the
Republic of Finland, the Government of the French Republic, the Government of the Federal Republic of Germany, the
Government of the Kingdom of the Netherlands, the Government of the Kingdom of Norway, the Government of the
Russian Federation, the Government of the Kingdom of Sweden, the Government of the United Kingdom of Great Britain
and Northern Ireland, the European Community, and the European Atomic Energy Community (hereinafter referred to as
the Parties),

Reaffirming their commitment to achieving the purposes of the Framework Agreement on a Multilateral Nuclear
Environmental Programme in the Russian Federation signed on 21 May 2003 (hereinafter referred to as the Agreement),

Convinced of the need to establish provisions ensuring that claims against the Contributing Parties and their personnel
or contractors, subcontractors, consultants, suppliers or subsuppliers 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,

HAVE AGREED AS FOLLOWS:

Article 1

The definitions contained in Article 2 of the Agreement
1.
shall apply to this Protocol as fully and effectively as if they
were set forth in full herein.

For the purposes of this Protocol, the following terms

2.
shall have the following meanings:

nuclear incident: Any occurrence or series of occurrences having
the same origin which causes nuclear damage.

nuclear damage:

(i) loss of life, any personal injury or any loss
of, or damage to, property which arises out
of or results from the radioactive properties
or a combination of radioactive properties
with toxic, explosive or other hazardous
properties of nuclear fuel or radioactive
products or waste
in, or of nuclear
material coming from, originating in, or
sent to, a nuclear installation;

(ii) any other loss or damage so arising or
resulting if and to the extent that the law
of the competent court so provides; and

(iii) if the law of the State in which the nuclear
installation of the liable operator is situated
so provides, loss of life, any personal injury
or any loss of, or damage to, property
which arises out of or results from other
ionising radiation emitted by any other
source of radiation inside a nuclear instal-
lation.

3.
For the purposes of this Protocol, whenever both nuclear
damage and damage other than nuclear damage have been
caused by a nuclear incident, or jointly by a nuclear incident
and one or more other occurrences, such other damage shall, to
the extent that it is not reasonably separable from the nuclear
damage, be deemed, for the purposes of this Protocol, to be
nuclear damage caused by that nuclear incident.

Article 2

consultants,

1. With the exception of claims for injury or damage against
individuals arising from omissions or acts of such individuals
done with intent to cause injury or damage, the Russian Party
shall bring no claims or legal proceedings of any kind against
sub-
the contributors and their personnel or contractors,
contractors,
of
subsuppliers
equipment, goods or services at any tier and their personnel,
for any loss or damage of whatsoever nature, including but not
limited to personal injury, loss of life, direct, indirect and conse-
quential damage to property owned by the Russian Federation
arising from activities undertaken pursuant to the Agreement.
This paragraph shall not apply to the enforcement of
the
express provisions of a contract.

suppliers

or

to cause damage,

2. With the exception of claims for nuclear damage against
individuals arising from omissions or acts of such individuals
done with intent
the Russian Party shall
provide for the adequate legal defence of and indemnify, and
shall bring no claims or legal proceedings against the contri-
butors and their personnel, or any contractors, subcontractors,
consultants, suppliers, or subsuppliers of equipment, goods or
services at any tier and their personnel in connection with third
in any court or forum, arising from activities
party claims,
for nuclear damage
undertaken pursuant
occurring within or outside the territory of
the Russian
Federation,
incident occurring
within the territory of the Russian Federation.

to the Agreement,

from a nuclear

results

that

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the Russian Party or

Upon request by a Party,

its
3.
authorised representative shall issue an indemnity confirmation
letter to any contractor, subcontractor, consultant, supplier or
this Protocol. A
subsupplier confirming the provisions of
is
standard form of
enclosed as an integral part of this Protocol.

such Indemnity Confirmation Letter

The Parties may consult as appropriate, on claims and

4.
proceedings under this Article.

5.
Any payments related to the indemnification in paragraph
2 of this Article shall be made promptly and shall be freely
transferable to the beneficiary in its national currency.

contractors,

Contributors,

subcontractors,

6.
consultants,
suppliers or subsuppliers of equipment, goods or services at
any tier and their personnel may refer any dispute concerning
the implementation of obligations under this Article to arbi-
tration in accordance with UNCITRAL Arbitration Rules,
if
such dispute has not been resolved amicably within 90 days
of its submission to the Russian Party. Any arbitration award
shall be final and binding on the parties to the dispute.

Accession shall be

an
4.
instrument of accession with at least one of the depositaries
of the Agreement.

effected by the deposit of

5.
The depositaries of this Protocol shall be the depositaries
of the Agreement and shall fulfil their duties in accordance with
Article 77 of the Vienna Convention on the Law of Treaties of
23 May 1969 and shall consult each other in the fulfilment of
their duties.

Article 4

the depositaries of

1.
Subject to the entry into force of the Agreement, this
Protocol shall enter into force on the 30th day following the
date of receipt by at
the
least one of
instruments of ratification, acceptance or approval referred to
in Article 3(2) from the Russian Federation and from any other
signatory to this Protocol and it shall remain in force for a
from that date. For each signatory
period of
ratifying, accepting or approving thereafter, this Protocol shall
enter into force for it on the 30th day following the receipt by
at least one of the depositaries of the instruments of ratification,
acceptance or approval referred to in Article 3(2) and it shall
remain in force until the expiration of
five-year
period.

its original

five years

Nothing in this Article shall be construed as acknowl-
7.
edging the jurisdiction of any court or forum outside the
Russian Federation over third party claims to which paragraph
2 of this Article applies, except as provided for in paragraph 6
this Article and in any other case where the Russian
of
to acknowledge and execute a
Federation has pledged itself
legal decision on the basis of provisions of
international
agreements.

2.
For each Party acceding to this Protocol, it shall enter into
force for it 30 days following the receipt by at least one of the
depositaries of the instrument of accession referred to in Article
3(4) and it shall remain in force until the expiration of the
original
this
Article.

five-year period mentioned in paragraph 1 of

8.
Nothing in this Article shall be construed as waiving the
immunity of the Parties with respect to potential third party
claims that may be brought against any of them.

3.
This Protocol shall be extended automatically for further
periods of five years. Any Party may request at least one of the
depositaries, at least 90 days before the expiration of the five-
year period, to convene a meeting of the Parties to consider the
continuation, modification or amendment of this Protocol.

Article 3

This Protocol is open for signature by any signatory to the

1.
Agreement.

is subject

This Protocol

2.
to ratification, acceptance or
approval by signatories that are Parties to the Agreement.
Instruments of ratification, acceptance or approval shall be
deposited with at least one of the depositaries of the Agreement.

4.
Any Party may withdraw from this Protocol upon giving
90 days written notification to at least one of the depositaries.
The MNEPR Committee shall
the
matter and shall make recommendations to the Parties on the
further continuation of this Protocol and the Agreement.

immediately be seized of

This Protocol shall be open to accession by any Party that

3.
has acceded to the Agreement.

5.
The obligations under this Protocol shall remain in effect
regardless of any subsequent transfer of ownership of the object
of cooperation, and regardless of any termination of, or with-
drawal from, this Protocol or the Agreement, or the expiration
of their validity.

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6. (a) Notwithstanding any termination of this Protocol, it shall
continue to apply to any Implementing Agreement
which the Parties
to such Implementing Agreement
agree to continue, for the duration of such Implementing
Agreement.

(b) Where

a Party withdraws
be

from this Protocol but
continues
to
Implementing
to
this Protocol shall continue to apply to
Agreement,
such Party with respect to its participation in such Imple-
menting Agreement.

Party

an

a

in its discretion and by notice in writing to the
may,
terminate the application of Article
Russian Federation,
this Protocol as between it and the Russian
2(2) of
undertaken
Federation with respect
to which these instruments
pursuant
apply. The Russian Federation and such other Party shall
each inform the other in writing of the dates upon which
such instruments come into force in their respective terri-
tories.

to the Agreement

to any

activity

7. Where,

This Protocol shall be applied on a provisional basis from

8.
the date of its signature.

(a)

the Vienna Convention on Civil Liability for Nuclear
Damage of 21 May 1963 (hereinafter referred to as the
Vienna Convention) and the Joint Protocol relating to the
Application of
the Vienna Convention and the Paris
Convention of 21 September 1988 (hereinafter referred to
as the Joint Protocol) have both come into force for the
Russian Federation, and

(b) the Vienna Convention or the Paris Convention on Third
Party Liability in the Field of Nuclear Energy of 29 July
1960 and the Joint Protocol have both come into force
for any other Party to this Protocol, such other Party

Done at Stockholm on 21 May 2003 in the English, French
and Russian languages, all texts being equally authentic, in two
originals of which one shall be deposited in the archives of the
Ministry of Foreign Affairs of the Russian Federation and one in
the archives of the Organisation for Economic Cooperation and
Development. Duly certified copies of this Protocol shall be
transmitted to the signatories and acceding Parties.
In the
event of any dispute or divergence in relation to this Protocol
the English text shall prevail
interpre-
tation (*).

for the purposes of

(*) It may be useful to provide that a copy of the letter also be sent to
the Government of the country in which the Contractor carries on
business.

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ANNEX

Model of an INDEMNITY CONFIRMATION LETTER to be provided by the Ministry of the Russian Federation for Atomic
Energy to [contractor]

Dear Sirs,

The Government of the Russian Federation and [name of other Party] are Parties to the Framework Agreement on a
Multilateral Nuclear Environmental Programme in the Russian Federation (hereinafter referred to as the MNEPR
Agreement) of 21 May 2003 to facilitate cooperation in the area of safety of spent nuclear fuel and radioactive waste
in the Russian Federation. They are also Parties to the Protocol to the MNEPR Agreement on Claims, Legal Proceedings
and Indemnification of 21 May 2003 (hereinafter referred to as the Protocol).

The Ministry of the Russian Federation for Atomic Energy, acting on behalf of the Government of the Russian Federation,
[contractor] has entered into an [Implementing Agreement/Agreement/Contract] with
hereby acknowledges that
[recipient] on [date] to provide assistance for the implementation of the MNEPR Project known as [project name].
The persons and entities identified in the attached list are the [contractor’s] personnel, subcontractors, suppliers, subsup-
pliers and consultants who will be providing equipment, goods or services pursuant to the [Implementing Agreement/
Agreement/Contract]. [Contractor] may amend this list, from time to time, upon notification to the Ministry of the
Russian Federation for Atomic Energy or its authorised representative for the implementation of the [project name].

The Ministry of the Russian Federation for Atomic Energy, acting on behalf of the Government of the Russian Federation,
confirms that in accordance with Articles 2(1) and 2(2) of the Protocol,

(a) with the exception of claims for injury or damage against individuals arising from omissions or acts of such
individuals done with intent to cause injury or damage, it will bring no claims or legal proceedings of any kind
against [contractor] and its personnel or subcontractors, consultants, suppliers or subsuppliers of equipment, goods or
services at any tier and their personnel identified in the attached list as amended from time to time, for any loss or
damage of whatsoever nature, including but not limited to personal injury, loss of life, direct, indirect and conse-
quential damage to property owned by the Russian Federation arising from activities undertaken pursuant to the
MNEPR Agreement, it being agreed that this paragraph shall not apply to the enforcement of the express provisions
of a contract; and

(b) with the exception of claims for nuclear damage against individuals arising from omissions or acts of such individuals
done with intent to cause damage, it shall provide for the adequate legal defence of, and indemnify, and shall bring no
claims or legal proceedings against [contractor] and its personnel or any subcontractors, consultants, suppliers, or
subsuppliers of equipment, goods or services at any tier and their personnel identified in the attached list as amended
from time to time, in connection with third-party claims, in any court or forum, arising from activities undertaken
pursuant to the MNEPR Agreement, for nuclear damage occurring within or outside the territory of the Russian
Federation, that results from a nuclear incident occurring within the territory of the Russian Federation.

The Ministry of the Russian Federation for Atomic Energy, acting on behalf of the Government of the Russian Federation,
agrees that any dispute, controversy or claim arising out of or relating to this Indemnity Confirmation Letter, including its
existence or validity, shall be referred to and finally resolved by arbitration in accordance with UNCITRAL Arbitration
Rules if such dispute has not been resolved amicably within 90 days of its submission to the Government of the Russian
Federation for resolution. The appointing authority for the purposes of the UNCITRAL Arbitration Rules shall be the
Stockholm Chamber of Commerce. The place of arbitration shall be the Arbitration Institute of the Stockholm Chamber
of Commerce, Stockholm, Sweden and Swedish law shall apply. Where the UNCITRAL Arbitration Rules do not provide
for a particular situation the arbitration tribunal shall determine the course of action to be followed.

This Indemnity Confirmation Letter shall enter into force upon signature by the Ministry of the Russian Federation for
Atomic Energy, acting on behalf of the Government of the Russian Federation, and it shall remain in effect in accordance
with the MNEPR Agreement and the Protocol.

......................................................................................................................................................................................................................................

(Signature)

(Title)

(Authorised representative of the Ministry of the Russian Federation for Atomic Energy)

...........................................
(Date)