Proposal for a Council Decision on the signing of the Cooperation Agreement on a Civil Global Navigation Satellite System (GNSS) between the European Community and its Member States and Ukraine
Date: 2005-08-02
Institutions: European Commission
Subjects: EU research policy, Ukraine, cooperation agreement (EU), satellite navigation, scientific cooperation, signature of an agreement

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 2.8.2005 
COM(2005)350 final 

Proposal for a 

COUNCIL DECISION 

on the signing of the Cooperation Agreement on a Civil Global Navigation Satellite 
System (GNSS) between the European Community and its Member States and Ukraine  

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

Ukraine  is  one  of  the  eight  countries  within  the  world  space  community  demonstrating 
significant  technological  background  on  space  programmes  and  important  achievements  in 
satellite navigation applications, equipment, user segment and regional technology. 

The Ukrainian space industry appears among the world’s leader in the design and production 
of launchers and critical GNSS components. 

Since 2000 Ukraine has shown interest in European GNSS projects and has developed an own 
contribution to the regional EGNOS System Test Bed, precursor of Galileo. 

On  7  October  2003  the  EU-Ukraine  summit  adopted  the  Ukraine  -  EU  Joint  Statement  on 
Cooperation in Satellite Navigation. 

On 18 February 2004, the Commission adopted a Communication entitled “Progress report on 
the  Galileo  research  programme  as  at  the  beginning  of  2004”1  Chapter  2  of  which,  entitled 
“International  cooperation  takes  off”,  sets  out  a  strategy  for  developing  the  international 
dimension of Galileo. 

In its conclusions adopted on 9 March 2004 on the basis of this Communication, the Council 
“encourages the development of international cooperation in this area”.  

The Commission services followed the invitation of the Ukrainian Government and presented 
on 21 June 2004 the GALILEO programme to the Ukrainian Government and industries. The 
presentations were followed by exploratory talks on the status and objectives of the respective 
policies  on  satellite  navigation  and  on  possible  forms  of  cooperation.  They  confirmed  the 
value  of  the  Ukraine  for  the  GALILEO  programme.  The  broad  scope  of  an  EU-Ukraine 
cooperation agreement was discussed with a view to recommend it to the respective political 
authorities. 

On  2  July  2004  Ukraine  asked  to  start  negotiations  on  a  co-operation  agreement  on 
EGNOS/GALILEO. 

On 7 October 2004 the Council adopted negotiation directives authorising the Commission to 
open  negotiations  for  establishing  a  cooperation  agreement  on  a  Civil  Global  Navigation 
Satellite  System  (GNSS)  between  the  European  Community  and  its  Member  States  and 
Ukraine. 

In  formal  negotiations  in  Kiev  on  3  June  2005  the  representatives  of  the  Commission  and 
Ukraine have agreed on the content and initialled the enclosed Agreement.  

The  Galileo  Special  Committee  of  the  Council  has  been  consulted  in  accordance  with  the 
negotiation directives. 

The Commission proposes to the Council, on the basis of Articles 133 and 170, in conjunction 
with the first sentence of the first subparagraph of Article 300(2) of the Treaty establishing the 
European  community,  to  authorise  the  signature  of  the  Cooperation  Agreement  on  a  Civil 

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COM(2004)112 final of 18.2.2004 

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Global  Navigation  Satellite  System  (GNSS)  between  the  European  Community  and  its 
Member States and Ukraine. 

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Proposal for a 

COUNCIL DECISION 

on the signing of the Cooperation Agreement on a Civil Global Navigation Satellite 
System (GNSS) between the European Community and its Member States and Ukraine  

THE COUNCIL OF THE EUROPEAN UNION, 

Having regard to the Treaty establishing the European Community, and in particular Articles 
133 and 170, in conjunction with the first sentence of the first subparagraph of Article 300(2) 
thereof, 

Having regard to the proposal from the Commission2, 

Whereas: 

(1) 

The Commission has negotiated an Agreement with Ukraine 

(2) 

Subject to its possible conclusion at a later date, the Agreement initialled on 17 March 
2004 should be signed, 

HAS DECIDED AS FOLLOWS: 

Sole Article 

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 Cooperation Agreement on a Civil Global Navigation Satellite System (GNSS) between 
the European Community and its Member States, and Ukraine. 

The text of the Agreement is attached to this Decision 

Done at Brussels,  

For the Council 
The President 

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OJ C , , p. . 

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ANNEX 

COOPERATION AGREEMENT 
ON A CIVIL GLOBAL NAVIGATION SATELLITE SYSTEM (GNSS) BETWEEN 
THE EUROPEAN COMMUNITY AND ITS MEMBER STATES AND UKRAINE 

THE EUROPEAN COMMUNITY hereinafter referred to as the "Community", 

and 

THE KINGDOM OF BELGIUM, 

THE CZECH REPUBLIC, 

THE KINGDOM OF DENMARK, 

THE FEDERAL REPUBLIC OF GERMANY, 

THE REPUBLIC OF ESTONIA, 

THE HELLENIC REPUBLIC, 

THE KINGDOM OF SPAIN, 

THE FRENCH REPUBLIC, 

IRELAND, 

THE ITALIAN REPUBLIC, 

THE REPUBLIC OF CYPRUS, 

THE REPUBLIC OF LATVIA, 

THE REPUBLIC OF LITHUANIA, 

THE GRAND DUCHY OF LUXEMBOURG, 

THE REPUBLIC OF HUNGARY, 

THE REPUBLIC OF MALTA, 

THE KINGDOM OF THE NETHERLANDS, 

THE REPUBLIC OF AUSTRIA, 

THE REPUBLIC OF POLAND, 

THE PORTUGUESE REPUBLIC, 

THE REPUBLIC OF SLOVENIA, 

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THE SLOVAK REPUBLIC, 

THE REPUBLIC OF FINLAND, 

THE KINGDOM OF SWEDEN, 

THE UNITED KINGDOM OF GREAT BRITAIN AND NORTHERN IRELAND, 

Contracting parties to the Treaty establishing the European Community, hereinafter referred 
to as "Member States", of the one part, 

and 

UKRAINE, of the other part, 

hereinafter referred to as "the Parties" 

CONSIDERING  the  common  interests  in  the  development  of  a  global  navigation  satellite 
system for civil use, 

RECOGNISING the importance of GALILEO as a contribution to navigation and information 
infrastructure in European Community and UKRAINE, 

RECOGNISING the advanced UKRAINE's satellite navigation activities, 

CONSIDERING the increasing development of GNSS applications in UKRAINE, European 
Community and other areas in the world, 

HAVE AGREED AS FOLLOWS: 

ARTICLE 1 

Objective of the agreement 

The  objective  of  the  agreement  is  to  encourage,  facilitate  and  enhance  cooperation  between 
the Parties in civil global satellite navigation. 

ARTICLE 2 

Definitions 

For the purposes of this Agreement: 

"Augmentation"  means  regional  or  local  mechanisms  such  as  the  European  Geostationary 
Navigation  Overlay  System  (EGNOS).  These  mechanisms  enable  users  to  obtain  enhanced 
performance, such as increased accuracy, availability, integrity, and reliability. 

"GALILEO"  means  an  autonomous  civil  European  global  satellite  navigation  and  timing 
system under civil control, for the provision of GNSS services designed and developed by the 
Community  and  its  Member  States.  The  operation  of  GALILEO  may  be  transferred  to  a 
private party. GALILEO envisages one or more services for open, commercial and safety of 
life,  search  and  rescue  purposes,  and,  for  regulated  use  by  public  authorities  the  secured 
public regulated service. 

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“GALILEO Open Service (OS)” means a service open to the general public free of charges 
for its provision.  

“GALILEO Safety of Life Service (SoL)” means a service based on the open service offering 
additionally integrity information, signal authentication, service guarantees and other features 
necessary for Safety of Life applications like aviation and maritime transport. 

“GALILEO  Commercial  Service  (CS)”  means  a  service  facilitating  the  development  of 
professional applications and offers enhanced performance compared with the Open Service, 
particularly in terms of higher data rates, service guarantees and accuracy. 

“GALILEO  Search  and  Rescue  Service”  means  a  service  improving  search  and  rescue 
operations  by  providing  a  faster  and  more  accurate  location  of  distress  beacons  and  return 
message capabilities. 

“GALILEO Public Regulated Service (PRS)” means a secured positioning and timing service 
with  restricted  access  specifically  designed  to  meet  the  needs  of  authorised  public  sector 
users. 

"GALILEO  local  elements"  are  local  mechanisms  that  provide  the  users  of  GALILEO 
satellite-based navigation and timing signals with input information, extra to that derived from 
the  main  constellation  in  use.  Local  elements  may  be  deployed  for  additional  performance 
around  airports,  seaports  and  in  urban  or  other  geographically  challenging  environments. 
GALILEO will provide a general approach for the development of local elements to support 
the market take-off and to facilitate the standardisation. 

"Global  navigation,  positioning  and  timing  equipment"  means  any  civil  end  user  equipment 
designed  to  transmit,  receive,  or  process  satellite-based  navigation  or  timing  signals  to 
provide a service, or to operate with a regional augmentation. 

"Regulatory  measure"  means  any  law,  regulation,  rule,  procedure,  decision,  administrative 
action or similar action by a Party. 

"Interoperability" means at user level a situation where a dual-system receiver can use signals 
from  two  systems  together  for  equal  or  better  performance  than  by  using  only  one  system. 
Interoperability  of  global  and  regional  satellite  navigation  systems  enhances  the  quality  of 
services available to users. 

"Intellectual  property"  shall  have  the  meaning  found  in  Article  2  of  the  Convention 
Establishing the World Intellectual Property Organisation, done at Stockholm, July 14, 1967. 

"Liability"  means  the  legal  accountability  of  a  person  or  legal  entity  to  compensate  for 
damage caused to another person or legal entity in accordance with specific legal principles 
and  rules.  This  obligation  may  be  prescribed  in  an  agreement  (contractual  liability)  or  in  a 
legal norm (non-contractual liability). 

"Classified information" means official information that requires protection in the interests of 
national defence or foreign relations of the Parties, and is classified in accordance with their 
applicable laws and regulations. 

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ARTICLE 3 

Principles of the cooperation 

The  Parties  agree  to  apply  the  following  principles  to  cooperation  activities  covered  by  this 
agreement: 

1. Mutual benefit based on an overall balance of rights and obligations. 

2.  Partnership  in  the  GALILEO  Programme  in  accordance  with  the  procedures  and  rules 
governing the management of GALILEO. 

3.  Reciprocal  opportunities  to  engage  in  cooperative  activities  in  European  Community  and 
Ukrainian GNSS projects for civil use. 

4. Timely exchange of information that may affect cooperative activities. 

5.  Appropriate  protection  of  intellectual  property  rights  as  referred  to  in  Article  8(2)  of  this 
Agreement. 

ARTICLE 4 

Scope of cooperation activities 

1. The sectors for cooperative activities in satellite navigation and timing are: radio-spectrum, 
scientific  research  and  training,  industrial  cooperation,  trade  and  market  development, 
standards,  certification  and  regulatory  measures,  development  of  global  and  regional  GNSS 
ground augmentation systems, security, liability and cost recovery. The Parties may adapt this 
list of issues by common agreement. 

2. Extending cooperation, if requested by the Parties to: 

2.1.  GALILEO  sensitive  technologies  and  items  under  EU,  EU  and  ESA  Member  States, 
MTCR and WASSENAAR agreement export control regulation as well as cryptography and 
major information security technologies and items, 

2.2. GALILEO System Security Architecture (space, ground and user segments), 

2.3. Security control features of the GALILEO global segments, 

2.4.  Public  Regulated  Services  in  their  definition,  development,  implementation,  test  and 
evaluation and operational (management and use) phases, as well as  

2.5. Exchange of classified information concerning satellite navigation and Galileo  

would need to be subject to an appropriate separate agreement to be concluded between the 
Parties. 

3.  This  Agreement  shall  not  affect  the  institutional  structure  established  by  European 
Community law for the purpose of the operations of the GALILEO programme. Nor does this 
Agreement affect the applicable laws, regulations and policies implementing non-proliferation 

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commitments and export control of dual-use items and national domestic measures regarding 
security and controls of intangible transfers of technology. 

ARTICLE 5 

Forms of cooperation activities 

1. Subject to their applicable regulatory measures, the Parties shall foster, to the fullest extent 
practicable,  the  cooperative  activities  under  this  Agreement  with  a  view  to  providing 
comparable  opportunities  for  participation  in  their  activities  in  the  sectors  listed  under 
Article 4. 

2. The Parties agree to conduct cooperative activities as mentioned in Articles 6 to 13 of this 
Agreement. 

ARTICLE 6 

Radio spectrum 

1.  Building  on  past  successes  in  the  framework  of  the  International  Telecommunication 
Union, the Parties agree to continue cooperation and mutual support in radio-spectrum issues. 

2.  In  this  context  the  Parties  shall  support  adequate  frequency  allocations  for  GALILEO  in 
order to ensure the availability of GALILEO services for the benefit of users worldwide and 
notably in Ukraine and in the Community. 

3. Moreover, the Parties recognise the importance to protect radio navigation spectrum from 
disruption and interference. To this end, they shall seek to identify sources of interference and 
mutually acceptable solutions to combat such interference. 

4.  Nothing  in  this  Agreement  shall  be  construed  so  as  to  derogate  from  the  applicable 
provisions  of  the  International  Telecommunications  Union,  including  the  ITU  Radio 
Regulations. 

ARTICLE 7 

Scientific research and training 

The Parties shall promote joint research and training activities in the field of GNSS through 
Community  and  Ukraine  research  programmes  including  the  European  Community 
Framework  Programme  for  Research  and  Development,  the  Research  Programmes  of  the 
European  Space  Agency  and  other  relevant  programmes  of  Community  and  Ukrainian 
authorities. 

The  joint  research  and  training  activities  should  contribute  to  planning  the  future 
developments of a GNSS for civil use. 

The  Parties  agree  to  define  the  appropriate  mechanism  aimed  at  ensuring  effective  contacts 
and participation in the research and training programmes. 

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ARTICLE 8 

Industrial cooperation 

1. The Parties shall encourage and support the cooperation between the industries of the two 
sides, including by the means of joint ventures and mutual participation in relevant industrial 
associations, , with the objective of setting up the GALILEO system as well as promoting the 
use and development of GALILEO applications and services. 

2. To facilitate industrial cooperation the Parties shall grant and ensure adequate and effective 
protection  and  enforcement  of  intellectual,  industrial  and  commercial  property  rights  at  the 
fields  and  sectors  relevant  to  the  development  and  operation  of  Galileo/EGNOS,  in 
accordance  with  the  highest  international  standards,  including  effective  means  of  enforcing 
such standards. 

3. Exports by Ukraine to third countries of sensitive items developed specifically and funded 
by  the  GALILEO  programme  will  have  to  be  submitted  for  prior  authorisation  by  the 
competent GALILEO security authority, if that authority has recommended that these  items 
be  subject  to  export  authorisation  in  accordance  with  applicable  regulatory  measures.  Any 
separate  agreement  referred  to  in  Article  4(2)  of  the  Agreement  shall  also  elaborate  an 
appropriate  mechanism  for  Ukraine  to  recommend  potential  items  to  be  subject  to  export 
authorisation. 

4.  The  Parties  shall  encourage  strengthened  ties  between  the  various  stakeholders  in  the 
GALILEO  programme  in  the  Ukraine  and  the  European  Union  in  the  context  of  industrial 
cooperation.  

ARTICLE 9 

Trade and market development 

1.  The  Parties  shall  encourage  trade  and  investment  in  Community  and  Ukraine  satellite 
navigation infrastructure, equipment, GALILEO local elements and applications. 

2. To this end the Parties shall raise the level of public awareness concerning the GALILEO 
satellite navigation activities, identify potential barriers to growth in GNSS applications and 
take appropriate measures to facilitate this growth. 

3.  To  identify  and  respond  effectively  to  user  needs  the  Community  and  Ukraine  shall 
consider establishing an open GNSS user forum. 

ARTICLE 10 

Standards, Certification and Regulatory Measures 

1. The Parties recognise the value of coordinating approaches in international standardisation 
and certification fora concerning global satellite navigation services. In particular the Parties 
will jointly support the development of GALILEO standards and promote their application in 
the Ukraine and worldwide, emphasising interoperability with other GNSS systems. 

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One objective of  the coordination  is to promote broad and  innovative  use  of  the  GALILEO 
services  for  open,  commercial  and  safety  of  life  purposes  as  a  worldwide  navigation  and 
timing standard. 

The Parties agree to create favourable conditions for developing GALILEO applications. 

2.  Consequently,  to  promote  and  implement  the  objectives  of  this  Agreement,  the  Parties 
shall,  as  appropriate,  cooperate  on  all  GNSS  matters  that  arise  notably  in  the  International 
Civil Aviation Organisation, EUROCONTROL, the International Maritime Organisation and 
the International Telecommunications Union. 

3. At bilateral level the Parties shall ensure that measures relating to operational and technical 
standards,  certification  and  licensing  requirements  and  procedures  concerning  GNSS  do  not 
constitute unnecessary barriers to trade. Domestic requirements shall  be  based on objective, 
non-discriminatory, pre-established transparent criteria. 

ARTICLE 11 

Development of global and regional GNSS ground augmentation systems 

1. The Parties shall collaborate to define and implement ground system architectures allowing 
an  optimal  guarantee  of  GALILEO/EGNOS  integrity  and  continuity  of  GALILEO  and 
EGNOS services and interoperability with other GNSS systems 

2.  To  this  end  at  the  regional  level  the  Parties  shall  cooperate  with  a  view  to  implement  a 
ground  regional  augmentations  system  in  Ukraine  based  on  the  GALILEO  system.  Such  a 
regional system is foreseen to provide regional integrity and high accuracy services additional 
to those provided by the GALILEO system globally. As a precursor, the Parties envisage the 
extension of EGNOS in Ukraine region through a ground infrastructure involving Ukrainian 
Ranging and Integrity Monitoring Stations.  

3. At local level the Parties shall facilitate the development of GALILEO local elements. 

ARTICLE 12 

Security 

1.  The  Parties  are  convinced  of  the  need  to  protect  Global  Navigation  Satellite  Systems 
against misuse, interference, disruption and hostile acts. 

2. The Parties shall take all practicable steps to ensure the quality, continuity and safety of the 
satellite navigation services and the related infrastructure in their territories. 

3.  The  Parties  recognise  that  cooperation  to  ensure  security  of  the  GALILEO  system  and 
services are important common objectives. 

4. Hence the Parties shall consider establishing an appropriate consultation channel to address 
GNSS security issues. The practical arrangements and procedures are to be defined between 
the competent security authorities of both Parties in accordance with Article 4. 

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ARTICLE 13 

Liability and cost recovery 

The  Parties  shall  cooperate,  as  appropriate,  to  define  and  implement  a  liability  regime  and 
cost  recovery  arrangements,  in  particular  in  the  framework  of  international  and  regional 
organisations, in order to facilitate the provision of civil GNSS services. 

ARTICLE 14 

Cooperative mechanism and exchange of information 

1.  The  coordination  and  facilitation  of  cooperative  activities  under  this  Agreement  shall  be 
accomplished on behalf of Ukraine, by the Government of the Ukraine and, on behalf of the 
Community and its Member States, by the European Commission.  

2.  In  accordance  with  the  objective  in  Article  1,  these  two  entities  shall  establish,  in  the 
framework  of  the  Partnership  and  Cooperation  Agreement  establishing  partnership  between 
the  European  Communities  and  their  Member  States  and  Ukraine,  a  GNSS  Steering 
Committee hereinafter referred to as the "Committee" for the management of this Agreement. 
This Committee shall consist of official representatives of each Party and it shall establish its 
own rules of procedure. 

The functions of the Steering Committee shall include: 

2.1.  Promoting,  making  recommendations  to  and  overseeing  the  different  cooperative 
activities as mentioned in Articles 4 to 13 of this Agreement; 

2.2.  Advising  the  Parties  on  ways  to  enhance  and  improve  cooperation  consistent  with  the 
principles set out in this Agreement; 

2.3. Reviewing the efficient functioning and implementation of this Agreement. 

3.  The  Committee  shall,  as  a  general  rule,  meet  annually.  The  meetings  should  be  held 
alternatively in the Community and in the Ukraine. Additional meetings may be organised at 
the request of either Party. 

The costs incurred by the Committee or in its name shall be borne by the Party to whom the 
official representatives relate. The costs other than those for travel and accommodation which 
are directly associated with meetings of the Committee shall be borne by the host Party. The 
Committee may set up Joint Technical Working Groups on specific subjects where the Parties 
consider it appropriate. 

4. The participation of any relevant Ukrainian entity to the Galileo Joint Undertaking or to the 
European  GNSS  Supervisory  Authority  is  possible  in  accordance  with  the  applicable 
legislation and procedures. 

5. The Parties shall encourage further information exchanges concerning satellite navigation 
among the institutions and enterprises of the two sides. 

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ARTICLE 15 

Funding 

1.  The  amount  and  arrangements  of  Ukrainian  contribution  to  the  GALILEO  programme 
through  the  Galileo  Joint  Undertaking  will  be  subject  to  a  separate  agreement  subject  to 
compliance with the institutional arrangements of the applicable legislation. 

2. The Parties shall take all reasonable steps and use its best efforts, in accordance with their 
laws  and  regulations,  to  facilitate  entry  to,  stay  in  and  exit  from  its  territory  of  persons, 
capital, material, data and equipment involved in or used in cooperative activities under this 
Agreement. 

3. Without prejudice to paragraph 2 when specific cooperative schemes of one Party provide 
for  financial  support  to  participants  from  the  other  Party,  any  such  grants  and  financial 
contributions from one Party to the participants of the other Party in support of those activities 
shall  be  granted  tax,  customs  and  other  duties  exemption  in  accordance  with  the  laws  and 
regulations applicable in the territories of each Party. 

ARTICLE 16 

Consultation and dispute resolution 

1. The Parties shall promptly consult, at the request of either of them, on any question arising 
out  of  the  interpretation  or  application  of  this  Agreement.  Any  disputes  concerning  the 
interpretation  or  application  of  this  agreement  shall  be  settled  by  friendly  consultations 
between the Parties. 

2.  Paragraph  1  shall  not  prevent  the  Parties  from  having  recourse  to  dispute  settlement 
procedures  under  the  Partnership  and  Cooperation  Agreement  establishing  partnership 
between the European Communities and their Member States, and Ukraine.  

ARTICLE 17 

Entry into force and termination 

1. This Agreement enters into force upon the date by which the Parties notify each other in 
writing  that  their  respective  internal  procedures  necessary  for  its  entry  into  force  have  been 
completed. 

2. The expiration or termination of this agreement shall not affect the validity or duration of 
any arrangements made under it or any specific rights and obligations that have accrued in the 
field of intellectual property rights. 

3.  This  Agreement  may  be  amended  by  mutual  agreement  of  the  parties  in  writing.  Any 
amendment shall enter into force on the date on which the Parties exchange diplomatic notes 
informing each other that their respective internal procedures necessary for its entry into force 
have been completed. 

4.  This  Agreement  shall  remain  in  force  for  a  period  of  five  years  and  is  renewable  by 
common agreement between the Parties for additional periods of five years at the end of the 

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initial  five-year  period.  Either  Party  may,  by  giving  three  months'  notice  to  the  other  in 
writing, terminate this Agreement. 

This  Agreement  is  drawn  up  in  duplicate  in  the  Czech,  Danish,  Dutch,  English,  Estonian, 
Finnish,  French,  German,  Greek,  Hungarian,  Italian,  Latvian,  Lithuanian,  Maltese,  Polish, 
Portuguese, Slovakian, Slovenian, Spanish, Swedish and Ukrainian languages. 

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