Moscow, october 12, 1993

Barter SUCDEN KERRY and ROSNEFTEPRODUCT

Policy n° 33196 PCT

During the negociations of the bilateral agreement on the consolidation of debts berween the government of the Republic of France and the government of the Russian Federation, the question of the repayment schedule of the arrears accumulated on the Barter Sucden Kerry and Rosnefteproduct was agreed.

The two delegations agreed that the french claim on this operation amounting to USD 70.983.508,00 (late interest excluded), which has been guaranteed by the VEB and

COFACE in 1992, had to be repaid according to article III.2 of the provision of the agreement signed in Paris in april 2, 1993, i.e. not later than june 30, 1993.

However, taking into consideration the date of the signature of the said bilateral agreement, the French Delegation has accepted the following repayment schedule :

- 33% of the amounts due and not paid will be paid on october 31, 1993

- 33% of the amounts due and not paid will be paid on november 30, 1993

- 34% of the amounts due and not paid will be paid on december 31, 1993

Late interest will be paid on december 31, 1993 at the latest. Howerer, the Russian

Delegation States that.

the issue of late interest will.

subject to feu then

consideration.

The Head of the French Delegation hope bill

The Head of the Russian Delegation
Mescow, October 12, 1993

Concerning the MUPI cases (liability of Russia for part of credits used in Ukraine and Azerbaidian!

COFACE files 1/426 482 and 1/426 483

During the negotiations of the bilateral Agreement on the consolidation of debts between

the government of the French Republic and the government of the Russian Federation, the issue of the treatment of these claims was discussed.

• The Russian delegation considers that the debt was not disbursed, and is therefore not

covered by the Declaration signed in Paris on April 2, 1993 by the Russian Government and attached to this Agreement, which refers to "debts disbursed" ;

- The French delegation disagrees with that view and indicates that the fact that the

promisary notes sent to VEB by the banks were never returned does not mean that the debt is not covered by the said Declaration (point b).

The two delegations agree to further review this question.

The head of the French delegation

The head of the Russian delegation
DECLARATION BY THE GOVERNMENI

OF THE RUSSIAY FEDERATION

The Government of the Russian Federation :

In light of the provisions of the Memorandum of Understanding on the Debr to Foreizn

Creditors of ihe

Union of Soviet Socialist Republics and its Successors done at Moscow on

23 October 1991;

In light of the provisions of the Agreement on the Deferral of the Debt of the Union of

Soviet Socialist Republics and its Successors to Foreign Official Creditors done at Paris on 4 January 1992 ;

Desiring to maintain sound and stable financial relations with the foreign creditors of the former Soviet Union;

Considering that establishing an appropriate legal framework for the repayment of the debt to foreign creditors of the former Soviet Union and confirming the legal status of such debt

HEREBY :

Acknowiedges the debt to foreign creditors of the former Sovier Union ;

Confirms its liability for the debt to foreign creditors of the former Soviet Union ;

Confirms its commitment to honoring in full the deot to foreign creditors of the former

Soviet Union;

States that this Declaration shail not affect the contracts giving rise to the debt to foreign creditors of the former Soviet Union or the application of the laws and regulations that govern such contracis;

States that the debt to foreign creditors of the former Soviet Union that is the subject of this Deciaration is :

(7) debt contracted or guaranteed by the Government of the former Soviet Union or by any legally authorized enticy vis-a-vis foreign credicors and outstanding as of

October 28, 1991 ; and (b) debt contracted or guaranteed by the Government of the former Soviet Union or by any legally auchorized entity vis-a-vis foreign creditors if disbursed after

October 28, 1991 to the Government of the Russian Federation or any legally authorized entity for use within the territory of the Russian Federation, or if disbursed after

October 29, 1991 but prior to March 31, 1993 for use outside che

territory of the Russian Federation unless disbursed foilowing clear written notice addressed io the reievant foreign creditor indicating that the Government of the

Russian Federation would not be liable for debe disbursed for use in another

Successor State; and (c) any other debt to foreign creditors of the former Soviet Union and any debt of any legally authorized entity for whose payment the Goverament of the Russian

Federation has agreed to be responsible; and
• L-

Considers that this Declaration shall remain in full force and effec: as long as any debt to foreign creditors of

former Soviet Union shall remain outstanding.

Signed in Paris,

Çi April 3. 1993 in the Rucsian language

..

iLA.