Proposal for a Council Decision concerning conclusion on behalf of the European Community of a Framework Agreement on a Multilateral Nuclear Environmental Programme in the Russian Federation and of the Protocol on Claims, Legal Proceedings and Indemnification to the Framework Agreement on a Multilateral Nuclear Environmental Programme in the Russian Federation
Date: 2006-11-08
Institutions: European Commission
Subjects: Russia, agreement (EU), indemnification, judicial proceedings, legal action, nuclear safety, protocol to an agreement, radioactive waste

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 8.11.2006 
COM(2006) 665 final 

2006/0227 (CNS) 

Proposal for a 

COUNCIL DECISION 

concerning conclusion on behalf of the European Community of a Framework 
Agreement on a Multilateral Nuclear Environmental Programme in the Russian 
Federation and of the  

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

(presented by the Commission) 

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EXPLANATORY MEMORANDUM 

Historical background : The situation in NW Russia 

Russia’s North West region is particularly endangered by the huge amounts of spent nuclear 
fuel and radioactive waste present there. The spent nuclear fuel (SNF) and radioactive waste 
in Russia originates from both past (historical waste) and present activities. The main sources 
are  nuclear  submarines.  Others  are  civilian  nuclear  powered  icebreakers,  floating  technical 
bases  storing  SNF,  military  and  civilian  nuclear  research  centres  including  reprocessing 
facilities and use of radionuclides in medicine, research and industry. 

Two thirds of all Russian military vessels belong to the Northern Fleet. A total of 253 nuclear 
propelled  military  vessels  were  built  during  the  period  1955-2001,  of  which  248  are 
submarines  and  the  rest  surface  ships.  About  180  of  these  vessels  have  been  taken  out  of 
service, of which more than 110 are from the Northern Fleet. The vessels taken out of service 
from the Northern Fleet contain more than 200 nuclear reactors (most submarines have two 
reactors on board). Many still have SNF on board. 

The  submarines  have  been,  and  still  are,  refuelled  and  serviced  at  a  number  of  naval  bases 
located in bays along the Murmansk and Arkhangelsk coast. Many of these are no longer in 
use but still contain SNF and radioactive waste. The two former service bases containing the 
largest  quantities  of  SNF  and  radioactive  waste  are  at  Andreeva  Bay  and,  with  smaller 
quantities, Gremikha Bay.  

None  of  the  naval  bases  has  appropriate  facilities  for  handling  and  storing  the  SNF  and 
radioactive waste on site. There are large quantities of radioactive material at many bases. The 
existing  stores  are  often  full  and  some  are  already  leaking  radioactive  material  into  the 
environment.  Because  the  bases  are  located  along  the  coast  there  is  a  significant  risk  of 
contamination of the sea. 

The  icebreakers  in  north-west  Russia  are  operated  by  the  Murmansk  Shipping  Company 
(MSCO),  which  is  also  responsible  for  refuelling  and  servicing  them.  The  SNF  is  sent  to 
Mayak for reprocessing and the radioactive waste is stored by MSCO.  

The  service  ship  Lepse  –  a  floating  technical  base  with  severely  damaged  SNF  from  the 
decommissioned  icebreaker  Lenin on board - is docked in Murmansk harbour. The industry 
initiated a clean-up project but this was discontinued, primarily due to lack of financing. The 
Lepse  belongs  to  the  MSCO.  It  was  built  in  1936,  sunk  during  World  War  Two  and  later 
refloated and used as a storage facility for spent nuclear fuel from icebreakers until 1981. The 
Lepse  was  also  used  to  transport  radioactive  waste  from  Atomflot  to  the  eastern  part  of 
Novaya  Zemlya,  where  the  waste  was  dumped  into  the  ocean.  The Lepse  holds  around  640 
spent fuel assemblies transferred from the reactors on the nuclear powered icebreaker Lenin 
that was hit by an accident in 1966. Today the radiation from the storage section of the Lepse 
is far above acceptable norms.  

The reaction of the international community: the MNEPR Framework Agreement 

Given the overall scale of the problem, it became evident in the mid-’90s that internationally 
concerted bilateral and multilateral action was necessary and should concentrate on the most 
serious nuclear safety problems, notably in the areas of treatment and storage of radioactive 
waste and spent nuclear fuel. A Contact Expert Group (CEG) was established in 1996 under 

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the  auspices  of  the  IAEA  to  co-ordinate  the  international  aid  to  Russia  in  the  field  of 
radioactive  waste  management.  Its  main  objective  was  to  identify  the  domains  where 
international funding would help to reduce the radiological risks posed by unsafe management 
of spent nuclear fuel and radioactive waste in north-west Russia. The Commission and some 
of the Member States have been taking part in the CEG’s work from the start. 

Bilateral  donors  started  to  assist  the  Russian  Federation  with  evaluating  the  situation  and 
addressing the problem under a series of bilateral and multilateral framework agreements. The 
Commission  supported  a  range  of  projects,  feasibility  analyses  for  the  Gremikha  and 
Andreeva  Bay  naval  bases  and  a  preliminary  project  on  the  Lepse,  but  there  was  a  general 
understanding  among  the  international  community that  only  stronger  and  joint  efforts  could 
address the problems satisfactorily. 

In response, on 5 March 1999 the participants (including Russia) at the Barents Euro-Arctic 
Council (BEAC) in Bodø (Norway) signed a declaration stating their intent to facilitate and 
broaden  cooperation  in  the  area  of  safety  of  spent  nuclear  fuel  and  radioactive  waste 
management.  They  launched  the  “Multilateral  Nuclear  Environmental  Programme  in  the 
Russian  Federation”  (MNEPR)  and  recommended  early  conclusion  of  a  Framework 
Agreement  on  the  MNEPR  to  overcome  the  obstacles  to  project  implementation.  The 
Framework  Agreement  included  an  additional  protocol  on  claims,  legal  proceedings  and 
indemnification. The Commission played an active part in the MNEPR talks and received a 
negotiating mandate from the Council in April 2000.  

The  negotiations  to  conclude  the  Framework  Agreement  extended  from  2000  to  2003.  The 
final  text  of  the  Framework  Agreement  was  signed  in  Stockholm  in  May  2003  by  the 
European  Community,  the  European  Atomic  Energy  Community,  Belgium,  Denmark, 
Finland, Germany, the Netherlands, Norway, the Russian Federation, Sweden and the United 
Kingdom. The USA signed the Framework Agreement, but not the Protocol. The original text 
was  deposited  at  the  OECD  Nuclear  Energy  Agency  in  Paris  and  the  Ministry  of  Foreign 
Affairs of the Russian Federation. 

Although  the  MNEPR  Framework  Agreement  could  be  applied  on  a  provisional  basis  from 
the  date  of  signature,  it  is  subject  to  ratification,  acceptance  or  approval  by  the  Parties,  as 
stated  in  Article  18  “Entry  into  force,  duration,  withdrawal  and  termination”.  All  the  EU 
Member  States  which  have  signed  the  Framework  Agreement  have  now  deposited  their 
ratification instruments with the Depositories, the last one being the United Kingdom which 
ratified  the  Framework  Agreement  in  April  2006.  The  European  Community  is  now  in  a 
position to conclude the MNEPR Framework Agreement. 

Conclusion 

1) 

2) 

The  Commission  proposes  that  the  Council  adopts  the  attached  proposal  for  a 
Decision  concerning  conclusion  of  a  Framework  Agreement  on  a  Multilateral 
Nuclear Environmental Programme in the Russian Federation and of the Protocol on 
Claims,  Legal  Proceedings  and  Indemnification  to  the  Framework  Agreement  on  a 
Multilateral Nuclear Environmental Programme in the Russian Federation. 

The  Commission  hereby  informs  the  Council  of  conclusion  on  behalf  of  the 
European Atomic Energy Community of a Framework Agreement on a Multilateral 
Nuclear Environmental Programme in the Russian Federation and of the Protocol on 
Claims, Legal Proceedings and Indemnification. 

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2006/0227 (CNS) 

Proposal for a 

COUNCIL DECISION 

concerning conclusion on behalf of the European Community of a Framework 
Agreement on a Multilateral Nuclear Environmental Programme in the Russian 
Federation and of the  

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

THE COUNCIL OF THE EUROPEAN UNION, 

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

Having regard to the proposal from the Commission1, 

Having regard to the opinion of the European Parliament2, 

Whereas:  

(1) 

(2) 

(3) 

(4) 

A Framework Agreement on a Multilateral Nuclear Environmental Programme in the 
Russian  Federation  (MNEPR)  and  the  Protocol  on  Claims,  Legal  Proceedings  and 
Indemnification to the Framework Agreement on a MNEPR were signed in Stockholm 
on 21 May 2003.  

The  Framework  Agreement  was  signed  by  the  European  Community,  the  European 
Atomic  Energy  Community,  Norway,  Sweden,  Denmark,  Finland,  Belgium,  France, 
Germany, the United Kingdom, the Netherlands and Russia. 

The  MNEPR  Framework  Agreement  establishes  a  multilateral  legal  framework  for 
nuclear-related projects carried out by western countries in north-west Russia, and the 
Protocol  on  Claims,  Legal  Proceedings  and  Indemnification  aims  to  settle  liability 
issues arising from activities undertaken in this context.  

The  MNEPR  is  designed  to  facilitate  projects  addressing  problems  regarding 
radioactive waste and spent nuclear fuel, decommissioning of nuclear submarines and 
icebreakers in the Russian Federation. It is focusing initially on the north-west region, 
but the Framework Agreement  states  that the MNEPR  may also apply to projects or 

1 
2 

OJ C , , p. . 
OJ C , , p. . 

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any  other  form  of  cooperation  in  other  areas  of  nuclear  activities,  including  nuclear 
safety, if so agreed by the Parties concerned. 

The  present  bilateral  Memorandum  of  Understanding  signed  between  the  European 
Commission  on  behalf  of  the  Communities  and  the  Russian  Federation  in  1995, 
covering the implementation of the Technical Assistance Programmes in the Field of 
Nuclear  Safety  and  which  address  nuclear  liability  issues  will  not  be  applicable  to 
projects under the new Instrument for Nuclear Safety Cooperation. 

All  the  EU  Member  States  which  have  signed  the  Framework  Agreement  have  now 
deposited  their  ratification  instruments  with  the  Depositories,  the  last  one  being  the 
United Kingdom which ratified the Framework Agreement in April 2006. 

The European Community is now in a  position to conclude  the MNEPR  Framework 
Agreement. 

(5) 

(6) 

(7) 

HAS ADOPTED THIS DECISION:  

Article 1 

1. 

2. 

The Framework Agreement on a Multilateral Nuclear Environmental Programme in 
the Russian Federation and the additional Protocol on Claims, Legal Proceedings and 
the  Framework  Agreement  on  a  Multilateral  Nuclear 
Indemnification 
Environmental Programme in the Russian Federation are hereby concluded on behalf 
of the European Community. 

to 

The text of the Framework Agreement and the additional Protocol are attached to this 
decision. 

Article 2 

The  President  of  the  Council  is  hereby  authorised  to  designate  the  person(s)  empowered  to 
deposit  the  instrument  of  conclusion  with  the  Secretary  General  of  the  Organisation  for 
Economic  Co-operation  and  Development  in  accordance  with  Articles  17  and  18  of  the 
MNEPR Agreement. 

The decision shall be published in the Official Journal of the European Union. 

Article 3 

This Decision is addressed to the Member States. 

Done at Brussels,  

For the Council 
The President 

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ANNEX 

FRAMEWORK AGREEMENT 

ON A MULTILATERAL NUCLEAR ENVIRONMENTAL PROGRAMME 

IN THE RUSSIAN FEDERATION 

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  Government  of  the  United  States  of 
America,  the  European  Community,  and  the  European  Atomic  Energy  Community 
(hereinafter referred to as the Parties), 

Noting the Joint Convention on the Safety of Spent Fuel Management and on the Safety of 
Radioactive  Waste  Management  of  5  September  1997  (hereinafter  referred  to  as  the  “Joint 
Convention”); 

Noting  that  the  Joint  Convention  stipulates  that  spent  fuel  and  radioactive  waste  within 
military or defence programmes should be managed in accordance with the objectives stated 
in  that  Convention  even  though  they  are  excluded  from  it  except  as  provided  in  Article  3 
thereof; 

Noting also the Convention on Nuclear Safety of 17 June 1994; 

Recalling  the  importance  the  Joint  Convention  attaches  to  international  co-operation  in 
enhancing  the  safety  of  spent  fuel  and  radioactive  waste  management  through  bilateral  and 
multilateral mechanisms;  

Reaffirming  the  importance  the  Parties  attach  to  the  principles  embodied  in  relevant 
international  conventions  on  nuclear  liability  for  the  provision  of  international  assistance  in 
this field; 

Recognising  the  work  of  the  Contact  Expert  Group  for  International  Radwaste  Projects 
established under the auspices of the International Atomic Energy Agency to deal with issues 
regarding  international  co-operation  in  radioactive  waste  management  and  related  issues  in 
the  Russian  Federation,  and  its  contribution  to  the  development  of  a  comprehensive 
International Action Plan; 

Desiring to facilitate practical co-operation to enhance the safety of spent fuel and radioactive 
waste  management  in  the  Russian  Federation,  in  particular  through  the  implementation  of 
projects  in  the  Russian  Federation  that  may  be  identified  by  the  Contact  Expert  Group  for 
International Radwaste Projects; 

Recalling the Declaration of Principles by members and observers of the Barents Euro-Arctic 
Council  representing  Denmark,  Finland,  France,  Germany,  Iceland,  Italy,  the  Netherlands, 
Norway, Poland, the Russian Federation Sweden, the United Kingdom and the United States 
regarding  the  Multilateral  Nuclear  Environmental  Programme  in  the  Russian  Federation 

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signed at Bodø (Norway) on 5 March 1999 in which the participants declared their readiness 
to  negotiate  a  multilateral  Framework  Agreement  covering  the  necessary  conditions  for  the 
provision of international assistance in this field; 

Have agreed as follows: 

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Article 1 

Multilateral Nuclear Environmental Programme 
in the Russian Federation (MNEPR) 

1. 

2. 

The  Parties  hereby  establish  a  framework  to  facilitate  co-operation  in  the  area  of 
safety  of  spent  nuclear  fuel  and  radioactive  waste  management  in  the  Russian 
Federation.  This  framework  shall  be  referred  to  as  the  “Multilateral  Nuclear 
Environmental Programme in the Russian Federation” (MNEPR). The MNEPR shall 
apply to projects undertaken between Contributors and Recipients or any other form 
of co-operation agreed by them. It may also apply to projects or  any other form of 
co-operation in other areas of nuclear activities, including nuclear safety, if so agreed 
by the Parties concerned. 

The Parties shall seek to avoid duplication of Assistance activities and to ensure that 
such  activities  are  complementary  to  activities  under  other  multilateral  or  bilateral 
funds, agreements, mechanisms or arrangements. 

Article 2 

Definitions 

For the purposes of this Agreement the following terms shall have the following meanings: 

Technical aid (assistance):  Any form  of  gratuitous aid and/or contribution provided under 
this  Agreement  or  under  any  Implementing  Agreement,  or  otherwise 
agreed  to  by  the  Russian  Party  and  the  Contributing  Party  or  Parties 
(hereinafter referred to as “Assistance”). 

Contributor:  Any Party other than the Russian Party or any entity authorized by such Party 

to provide Assistance under the MNEPR. 

Recipient: 

The Russian Party or any other Russian entity authorized by the Russian Party 
to serve as beneficiary of Assistance and partner for the realization of a project 
under the MNEPR.  

Implementing Agreement:  An agreement between one or more Recipients and one or more  
Contributors  for  the  provision  of  Assistance  for  the  realization  of  a 
project under the MNEPR. 

Article 3 

Modes of co-operation under the MNEPR 

Assistance under the MNEPR may be provided through: 

Implementing  Agreements  between  one  or  more  Recipients  and  any  one  of  the 
Contributors (Bilateral mode); 

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1. 

(a) 

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(b) 

(c) 

(d) 

2. 

Implementing Agreements between one or more Recipients and several Contributors 
whereby  a  common  financing  arrangement  will  not  be  established  (Multilateral 
simple mode); 

Implementing Agreements between one or more Recipients and several Contributors 
whereby a common financing arrangement will be established (Multilateral funding 
mode); or 

any other mechanism agreed by the Recipient(s) and Contributor(s) concerned. 

Except  as  otherwise  provided  in  this  Agreement,  the  terms  and  conditions  of  this 
Agreement shall apply to all Assistance provided under paragraph 1 of this Article. 
The provisions of this Agreement may also apply to activities undertaken before its 
entry into force if so agreed by the Parties involved in those activities. 

3. 

The  provision  of  Assistance  by  the  Contributors  under  this  Agreement  shall  be 
subject to the availability of appropriated funds. 

Article 4 

MNEPR Committee 

1. 

To  facilitate  co-operation  and  to  exchange  information  under  the  MNEPR,  the 
Parties  hereby  establish  the  MNEPR  Committee.  The  MNEPR  Committee  shall  be 
composed  of  one  authorized  official/governmental  representative  of  each  of  the 
Parties, who shall also serve as a contact point for all questions of relevance to the 
MNEPR. 

2. 

The MNEPR Committee may: 

•  discuss the development and implementation of projects and any other form of co-

operation under this Agreement; 

•  discuss  relevant  activities  under  other  bilateral  or  multilateral  agreements  or 

arrangements; 

•  co-ordinate funding for projects under Article 3.1 (c); 

•  identify  obstacles  and  problems  encountered  in  the  implementation  of  projects, 

and make recommendations regarding their resolution; 

•  establish  working  groups  as  required  for  the  functioning  of  the  MNEPR 

Committee; 

•  discuss and make recommendations on other matters relevant to the operation of 

MNEPR activities; 

and 

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3. 

4. 

5. 

6. 

1. 

2. 

1. 

2. 

•  invite  States,  intergovernmental  organisations  or  regional  economic  integration 
organisations  being  subject  to  public  international  law  to  accede  in  accordance 
with Article 16. 

The MNEPR Committee shall adopt its Rules of Procedure. 

The  MNEPR  Committee  shall  elect  two  co-chairpersons  for  twelve-month  periods 
from among representatives of the Parties, one from among the Contributing Parties 
and one representing the Russian Party. 

The  MNEPR  Committee  may  decide  to  admit  as  Observers  any  interested  State, 
inter-governmental organisation or regional economic integration organisation being 
subject to public international law not party to this Agreement. Where a Co-ordinator 
has been designated according to Article 5, that Co-ordinator shall be admitted as an 
Observer to meetings of the MNEPR Committee, where relevant. 

Decisions  and  recommendations  of  the  MNEPR  Committee  shall  be  made  by 
consensus. 

Article 5 

Co-ordinator of multilateral funding under the MNEPR 

The  Contributing  Parties  to  a  common  financing  arrangement,  as  referred  to  in 
Article 3.1(c), may designate a Co-ordinator for such an arrangement. 

The  rights  and  obligations  of  the  Contributing  Parties  under  this  Agreement  apply 
equally  to  the  Coordinator  where  the  Co-ordinator  performs  activities  on  behalf  of 
the Contributors. 

Article 6 

Specific undertakings 

The  Parties  shall  promote  activities  necessary  for  the  implementation  of  projects 
under the MNEPR. 

The Russian Party shall ensure the prompt issuance of, inter alia, licences, permits, 
approvals  and 
the  efficient 
the  prompt  customs  clearances  necessary  for 
implementation of projects. The Russian Party shall ensure the provision of data and 
information  necessary  for  the  implementation  of  specific  projects  within  the 
framework  of  this  Agreement.  The  Russian  Party  shall  grant  access  to  sites  and 
facilities necessary for the implementation of specific projects within the framework 
of  this  Agreement.  Should  such  access  be  restricted  according  to  the  provisions  of 
the  legislation  of  the  Russian  Federation,  mutually  acceptable  procedures  shall  be 
developed  in  the  Implementing  Agreements.  The  Implementing  Agreements  shall 
also define the procedures for, and the scope of, the information to be transferred. 

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3. 

1. 

2. 

3. 

1. 

2. 

1. 

The  provision  of  Assistance  shall  be  complemented  by  Russian  resources.  Such 
resources may be contributed in-kind or otherwise for the implementation of projects 
under the MNEPR. 

Article 7 

Claims, legal proceedings and indemnification 

This Agreement is supplemented by a Protocol containing provisions on claims, legal 
proceedings and indemnification in respect of claims against Contributors and their 
personnel  or  contractors,  subcontractors,  consultants,  suppliers  or  subsuppliers  of 
equipment, goods and services at any tier and their personnel, for any loss or damage 
of whatsoever nature arising from activities undertaken pursuant to this Agreement. 

The Protocol and its Annex shall not apply to any Party that does not become a party 
to the Protocol. 

Any  Party  that  does  not  become  a  party  to  the  Protocol  may  conclude  with  the 
Russian  Party  a  separate  agreement  covering  claims,  legal  proceedings  and 
indemnification  in  respect  of  claims  for  any  loss  or  damage  of  whatsoever  nature 
arising from activities undertaken pursuant to this Agreement. 

Article 8 

Use and retransfer of Assistance 

Unless the written consent of the Contributor has first been obtained, the Recipient 
shall not transfer title to, or possession of, any Assistance provided pursuant to this 
Agreement to any entity, other than an officer, employee or agent of that Contributor 
or that Recipient and shall not permit the use of such Assistance for purposes other 
than those for which it has been furnished. 

The Russian Party shall take all reasonable measures within its power to ensure the 
security  of,  ensure  the  appropriate  use  of,  and  prevent  the  unauthorized  transfer  of 
Assistance provided pursuant to this Agreement. 

Article 9 

Exemption from taxes or similar charges 

The  Russian  Party  shall  exempt  Assistance  provided  under  this  Agreement  from 
customs duties, profits taxes, other taxes and similar charges. The Russian Party shall 
take  all  necessary  steps  to  ensure  that  no  local  or  regional  taxes  are  levied  on 
Assistance provided under this Agreement. These steps will include the provision of 
letters from competent local and/or regional authorities confirming that no taxes will 
be levied on Assistance provided under this Agreement. Such letters of confirmation 
covering localities and regions where projects under this Agreement will be carried 
out  shall  be  deposited  with  at  least  one  of  the  Depositaries  before  the  start  of 
implementation of the projects. 

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2. 

3. 

4. 

5. 

6. 

1. 

2. 

The  Russian  Party  shall  exempt  remuneration  to  foreign  natural  persons  and  to 
Russian  citizens  not  ordinarily  resident  in  the  Russian  Federation  for  work 
undertaken  and  services  performed  by  such  persons  for  the  implementation  of 
Assistance under this Agreement from income tax, social security tax contributions, 
and  similar  charges  within  the  territory  of  the  Russian  Federation.  With  regard  to 
remuneration  exempted  by  this  paragraph,  the  Russian  Party  shall  not  have  any 
obligations  in  terms  of  any  charges  and  payments  to  the  persons  indicated  in  this 
paragraph,  at  the  expense  of  the  social  security  system  or  any  other  government 
funds. 

The  Contributing  Parties  and  their  personnel,  their  contractors,  subcontractors, 
suppliers  and  subsuppliers  may  import  into,  and  export  out  of,  the  Russian 
Federation  equipment,  supplies,  materials  or  services  required  to  implement  this 
Agreement.  In  addition 
temporary 
importation  and  exportation  shall  not  be  subject  to  customs  duties,  license  fees, 
undue restrictions, taxes or similar charges. 

the  provisions  regarding  Assistance, 

to 

In  addition  to  the  preceding  paragraphs,  persons  and  entities  participating  in  the 
implementation  of  the  programmes  in  the  framework  of  this  Agreement  within  the 
territory  of  the  Russian  Federation  are  entitled  to  exemption  from  value  added  tax 
and other charges with regard to equipment and goods purchased within the territory 
of the Russian Federation for the implementation of the projects or the programmes 
in  the  framework  of  this  Agreement,  as  well  as  works  done  and  services  rendered 
within the territory of the Russian Federation. 

Imposition  of  taxation  shall  be  regarded  as  a  valid  reason  for  suspension  or 
termination of an Assistance project, or not to initiate an Assistance project. 

The  Russian  Party  shall  be  responsible  for  procedures ensuring the implementation 
of  this  Article.  Necessary  certificates  shall  be  issued  by  the  relevant  competent 
authority. 

Article 10 

Accounts, audits and examinations 

Each  Recipient  shall  maintain  proper  accounts  of  all  Assistance  funding  received 
from  Contributors,  and  furnish  such  accounts,  together  with  full  supporting 
documentation, to the Contributor or Contributors concerned at regular intervals, as 
specified in the relevant Implementing Agreement or as otherwise agreed. 

Upon request, representatives of a Contributor shall have the right, within sixty days 
of  making  the  request,  to  examine  the  use  of  any  Assistance  provided  by  that 
Contributor  in  accordance  with  this  Agreement,  at  sites  of  their  location  or  use  if 
possible, and shall have the right to audit and examine any and all related records or 
documentation for a period of seven years after the completion or early termination 
of  the  project  in  question,  unless  another  period  is  specified  in  the  Implementing 
Agreement. The practical details of such audits and examinations shall be set out in 
the Implementing Agreements. 

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Article 11 

Intellectual property 

The  Parties  shall  provide  in  Implementing  Agreements,  as  appropriate,  effective  protection 
and allocation of rights to intellectual property transmitted or created under this Agreement. 

1. 

2. 

3. 

Article 12 

Status of personnel and entry and exit of personnel 

The Russian Party shall facilitate the entry and exit of employees of the Contributing 
Parties  to  this  Agreement  and  their  personnel  and  contractors,  subcontractors, 
consultants,  suppliers  and  subsuppliers  and  their  personnel  into  and  out  of  the 
territory  of  the  Russian  Federation  for  the  purpose  of  carrying  out  activities  in 
accordance with this Agreement. 

The Russian Party shall accredit military and civilian personnel of the Contributing 
Parties,  including  employees  of  the  Commission  of  the  European  Communities 
present  in  the  territory  of  the  Russian  Federation  in  order  to  carry  out  activities 
related  to  the  provision  of  Assistance  under  this  Agreement,  as  administrative  and 
technical  personnel  of  the  respective  diplomatic  missions,  the  mission  of  the 
Commission  of  the  European  Communities  and  the  missions  of  intergovernmental 
organisations, in the Russian Federation. After entry into force of this Agreement, the 
Parties will consult on the number of such personnel covered by this paragraph. The 
accreditation  of  such  personnel  shall  have  no  effect  on  the  number  of  accredited 
personnel permitted at Russian diplomatic missions in the Contributing Parties. 

The  Russian  Party  guarantees  that  the  contractors,  subcontractors,  consultants, 
suppliers,  subsuppliers  and  their  personnel  as  referred  to  in  paragraph  1  of  this 
Article may import and re-export out of the territory of the Russian Federation all of 
their personal household effects as well as foodstuffs for their personal use without 
being  liable  to  any  customs  duties,  taxes,  or  similar  charges.  Duty-free  import  into 
and  re-export  out  of  the  Russian  Federation  of  one  motor  vehicle  per  family  is 
allowed,  provided  that  the  vehicle  is  used  only  within  the  period  of  the  relevant 
contract and is re-exported at the end of this period. 

Article 13 

Settlement of disputes 

Any  disagreement  between  two  or  more  Parties  concerning  the  interpretation  of  this 
Agreement, or its implementation, shall be resolved through consultations. Consultations shall 
take place not later than three months after one of the Parties submits such a request in writing 
to the other Party or Parties. 

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Article 14 

Awarding of contracts 

In the event that a Party awards a contract for the acquisition of goods and services, including 
construction,  to  implement  this  Agreement,  such  contracts  shall  be  awarded  in  accordance 
with the laws and regulations of that Party, or such other laws and regulations as that Party 
may choose. Russian companies can also be used as contractors or subcontractors. 

Article 15 

Modifications and amendments 

Any modification or amendment to this Agreement, and any additional protocol to it, 
may be made by agreement among the Parties to this Agreement. 

Any  modification  or  amendment  made  pursuant  to  this  Article  shall  be  subject  to 
ratification,  acceptance  or  approval  by  all  of  the  Parties.  Modifications  or 
amendments  shall  enter  into  force  for  all  Parties  thirty  days  following  the  date  of 
receipt  by  at  least  one  of  the  Depositaries  of  the  last  notification  of  ratification, 
acceptance or approval. 

Article 16 

Accession 

This  Agreement  shall  be  open  for  accession  by  any  State,  inter-governmental 
organisation  or  regional  economic  integration  organisation  being  subject  to  public 
international law upon invitation by the MNEPR Committee. 

This Agreement shall enter into force for the acceding Party thirty days following the 
date of receipt by at least one of the Depositaries of the acceding Party’s instrument 
of accession and the last of the notifications by the Parties expressing concurrence. 

1. 

2. 

1. 

2. 

Article 17 

Depositaries 

The Minister of  Foreign  Affairs of the Russian Federation  and  the Secretary General of the 
Organisation  for  Economic  Co-operation  and  Development  are  hereby  designated  as 
Depositaries.  The  Depositaries  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. 

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Article 18 

Entry into force, duration, withdrawal and termination 

This Agreement shall be subject to ratification, acceptance or approval. Instruments 
of  ratification,  acceptance  or  approval  shall  be  deposited  with  at  least  one  of  the 
Depositaries. It shall enter into force on the thirtieth day following the date of receipt 
of such instruments from the Russian Party and from one other Signatory, and shall 
remain  in  force  for  a  period  of  five  years  from  that  date.  For  each  Signatory 
depositing such an instrument thereafter, this Agreement shall enter into force for it 
thirty  days  following  the  receipt  by  at  least  one  of  the  Depositaries  of  such 
instrument  and  shall  remain  in  force  until  the  expiration  of  its  original  five  year 
period. 

This  Agreement  shall  be  extended  automatically  for  further  periods  of  five  years. 
Any Party may request at least one of the Depositaries at least ninety days before the 
expiration of the five year period to convene a meeting of the Parties to consider the 
termination, modification or amendment of this Agreement 

Any  Party  may  withdraw  from  this  Agreement  upon  giving  ninety  days  written 
notification  to  at  least  one  of  the  Depositaries.  The  MNEPR  Committee  shall 
immediately be seized of the matter and shall make recommendations to the Parties 
on the further continuation of the Agreement. 

The  obligations  under  Articles  8  to  11,  Article  12  first  and  third  paragraphs,  and 
Article  13  of  this  Agreement  shall  remain  in  effect  regardless  of  any  subsequent 
transfer of ownership of the object of co-operation, and regardless of any termination 
of, or withdrawal from, this Agreement, or the expiration of its validity. 

Notwithstanding any termination of this Agreement, 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. 

Where  a  Party  withdraws  from  this  Agreement  but  continues  to  be  a  Party  to  an 
Implementing Agreement, this Agreement shall continue to apply to such Party with 
respect to its participation in such Implementing Agreement. 

1. 

2. 

3. 

4. 

5 

6. 

7. 

This Agreement shall be applied on a provisional basis from the date of its signature. 

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  Co-operation  and  Development.  Duly  certified  copies  of  this 
Agreement  shall  be  transmitted  to  the  Signatories  and  acceding  Parties.  In  the  event  of  any 
dispute  or  divergence  in  relation  to  this  Agreement  the  English  text  shall  prevail  for  the 
purposes of interpretation. 

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PROTOCOL ON CLAIMS, LEGAL PROCEEDINGS 

AND INDEMNIFICATION 

To the 

Framework Agreement 

On a Multilateral Nuclear Environmental Programme 

in the Russian Federation 

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 

1. 

2. 

The definitions contained in Article 2 of the Agreement 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  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; 

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(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 installation. 

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 

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  the 
Contributors 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,  including  but  not  limited  to  personal 
injury, loss of life, direct, indirect and consequential  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. 

With  the  exception  of  claims  for  Nuclear  Damage  against  individuals  arising  from 
omissions or acts of such individuals done with intent to cause damage, the Russian 
Party shall provide for the adequate legal defence of and indemnify, and shall bring 
no  claims  or  legal  proceedings  against  the  Contributors  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-party 
claims,  in  any  court  or  forum,  arising  from  activities  undertaken  pursuant  to  the 
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. 

Upon request by a Party, the Russian Party or its authorized representative shall issue 
an  indemnity  confirmation  letter  to  any  contractor,  subcontractor,  consultant, 
supplier or subsupplier confirming the provisions of this Protocol. A standard form 
of  such  Indemnity  Confirmation  Letter  is  enclosed  as  an  integral  part  of  this 
Protocol. 

The Parties may consult as appropriate, on claims and proceedings under this Article. 

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. 

3. 

1. 

2. 

3. 

4. 

5. 

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6. 

7. 

8. 

1. 

2. 

3. 

4. 

5. 

1. 

Contributors,  contractors,  subcontractors,  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  arbitration  in 
accordance  with  UNCITRAL  Arbitration  Rules,  if  such  dispute  has  not  been 
resolved  amicably  within  ninety  days  of  its  submission  to  the  Russian  Party.  Any 
arbitration award shall be final and binding on the parties to the dispute. 

Nothing  in  this  Article  shall  be  construed  as  acknowledging  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  of  this 
Article  and  in  any  other  case  where  the  Russian  Federation  has  pledged  itself  to 
acknowledge and execute a legal decision on the basis of provisions of international 
agreements. 

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. 

Article 3 

This Protocol is open for signature by any Signatory to the Agreement. 

This Protocol is subject 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. 

This  Protocol  shall  be  open  to  accession  by  any  Party  that  has  acceded  to  the 
Agreement. 

Accession shall be effected by the deposit of an instrument of accession with at least 
one of the Depositaries of the Agreement. 

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 

Subject to the entry into force of the Agreement, this Protocol shall enter into force 
on the thirtieth day following the date of receipt by at least one of the Depositaries of 
the 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 period of five years from that date. For each Signatory ratifying, 
accepting  or  approving  thereafter,  this  Protocol  shall  enter  into  force  for  it  on  the 
thirtieth  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 its original five year period. 

2. 

For  each  Party  acceding  to  this  Protocol,  it  shall  enter  into  force  for  it  thirty  days 
following  the  receipt  by  at  least  one  of  the  Depositaries  of  the  instrument  of 

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3. 

4. 

5. 

6. 

accession referred to in Article 3.4 and it shall remain in force until the expiration of 
the original five year period mentioned in paragraph 1 of this Article. 

This Protocol shall be extended automatically for further periods of five years. Any 
Party  may  request  at  least  one  of  the  Depositaries,  at  least  ninety  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. 

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

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

(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 from this Protocol but continues to be a Party to an 
Implementing  Agreement,  this  Protocol  shall  continue  to  apply  to  such  Party 
with respect to its participation in such Implementing Agreement. 

7. 

Where, 

(a) 

(b) 

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 

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  may,  in  its 
discretion  and  by  notice  in  writing  to  the  Russian  Federation,  terminate  the 
application  of  Article  2.2  of  this  Protocol  as  between  it  and  the  Russian 
Federation with respect to any activity undertaken pursuant to the Agreement 
to which these instruments 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 territories. 

8. 

This Protocol shall be applied on a provisional basis from the date of its signature. 

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  Co-operation  and  Development.  Duly  certified  copies  of  this 

EN 

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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 for the purposes 
of interpretation. 

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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]3 

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 
co-operation 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,  hereby  acknowledges  that  [Contractor]  has  entered 
into an [Implementing Agreement/Agreement/Contract] with [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,  subsuppliers  and  consultants  who  will  be  providing  equipment, 
[Implementing  Agreement/Agreement/Contract]. 
goods  or  services  pursuant 
[Contractor] may amend this list, from time to time, upon notification to the Ministry of the 
Russian Federation for Atomic Energy or its authorized representative for the implementation 
of the [Project name]. 

the 

to 

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  consequential  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 

3 

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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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  ninety  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) 

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