On approval of the Agreement between the Republic of Kazakhstan and the Russian Federation on Economic Cooperation for 1998-2007

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Decree of the President of the Republic of Kazakhstan dated February 24, 1999 No. 71

In order to further deepen economic integration and develop equal and mutually beneficial cooperation between the Republic of Kazakhstan and the Russian Federation, I hereby decree:

1. To approve the Agreement between the Republic of Kazakhstan and the Russian Federation on Economic Cooperation for 1998-2007, signed in Almaty on October 12, 1998.

2. This Decree comes into force from the date of signing.

President of the Republic of Kazakhstan

Approved By Decree of the President of the Republic of Kazakhstan No. 71 dated February 24, 1999.

Agreement *between the Republic of Kazakhstan and the Russian Federation on Economic Cooperation for 1998-2007

*(Entered into force on March 17, 1999 - Bulletin of International Treaties of the Republic of Kazakhstan, 2004, No. 4, art. 18)

The Republic of Kazakhstan and the Russian Federation, hereinafter referred to as the High Contracting Parties, guided by the Treaty of Friendship, Cooperation and Mutual Assistance between the Republic of Kazakhstan and the Russian Federation dated May 25, 1992, the Declaration between the Republic of Kazakhstan and the Russian Federation on Eternal Friendship and Alliance Oriented towards the 21st Century, and the Joint Statement of the President of the Republic of Kazakhstan and the President of the Russian Federation of the Russian Federation dated July 6, 1998, considering, that interstate integration is one of the most important elements of economic development, using the advantages of the international division of labor, specialization and cooperation of production, mutually beneficial trade to achieve the goals of socio-economic development of their countries, based on the need to further strengthen and develop equitable and mutually beneficial trade, economic and industrial relations, giving them a long-term and sustainable character, effective use of the economic potential of the two states and the improvement of the welfare of their peoples, Emphasizing the importance of harmonizing the implementation of economic reforms and creating conditions for a phased transition to the free movement of goods, services, capital and labor, taking into account practical cooperation based on agreements within the framework of the Commonwealth of Independent States and the Customs Union, we have agreed as follows:

Article 1

The High Contracting Parties shall implement the Economic Cooperation Program of the Republic of Kazakhstan and the Russian Federation for 1998-2007 (hereinafter referred to as the Program), which is an integral part of this Agreement.

Article 2

Economic cooperation of the High Contracting Parties is carried out through mutually beneficial interaction between economic entities of both States, regardless of their forms of ownership and subordination, in accordance with generally recognized principles and norms of international law, international treaties to which the Republic of Kazakhstan and the Russian Federation are parties, and the provisions of national legislation. Recognizing the need for the gradual formation and development of a common economic space, the High Contracting Parties will create favorable conditions for agreeing on the main directions of socio-economic transformations, bringing together the regulatory framework in the field of economics, assisting the development of cooperation and investors in the implementation of investment projects in the territory of both states, the creation of joint production structures, mutual participation in privatization in in accordance with the national legislation of the High Contracting Parties.

Article 3

The Governments of the High Contracting Parties will coordinate the implementation of the Program, carry out step-by-step control of its implementation and, if necessary, make adjustments to it.

Article 4

The implementation of the Program is reviewed at least once a year at the level of the Heads of Government of the High Contracting Parties.

Article 5

Disputes concerning the interpretation and application of the provisions of this Agreement shall be settled through consultations and negotiations.

Article 6

The Program may be amended and supplemented, which are formalized by intergovernmental protocols that are an integral part of the Program and enter into force in the same manner as this Agreement.

Article 7

This Agreement does not affect the rights and obligations arising from other international agreements of the High Contracting Parties.

Article 8

This Agreement shall enter into force on the date of the last written notification confirming that the High Contracting Parties have completed the internal procedures necessary for the entry into force of the Agreement and is valid until December 31, 2007. Each of the High Contracting Parties may terminate this Agreement by written notification to the other High Contracting Party. In this case, the Agreement shall terminate six months after the date of such notification. Termination of this Agreement does not affect the implementation of projects implemented in accordance with the Program.

Done in Almaty on October 12, 1998, in two copies, each in the Kazakh and Russian languages, both texts being equally authentic.

For the Republic For the Russian Republic of Kazakhstan The Federation

Economic Cooperation Program of the Republic of Kazakhstan of the Russian Federation for 1998-2007

The mutual economic interests of the Republic of Kazakhstan and the Russian Federation are conditioned by the historically established industrial, scientific and technical ties between many sectors of the economy of the two states and the objective need to preserve and further develop them on a mutually beneficial and equitable basis. A number of joint economic problems of the Republic of Kazakhstan and the Russian Federation are being solved by the states within the framework of their participation in the Customs Union. At the same time, it is necessary to intensify and deepen this process through the development of bilateral economic relations. The basis for joint implementation of this work is the Treaty of Friendship, Cooperation and Mutual Assistance between the Republic of Kazakhstan and the Russian Federation dated May 25, 1992, the Joint Kazakh-Russian (Almaty) Declaration dated April 27, 1996, the Declaration between the Republic of Kazakhstan and the Russian Federation on Eternal Friendship and Alliance Oriented towards the 21st Century, from On July 6, 1998, and the Joint Statement of the President of the Republic of Kazakhstan and the President of the Russian Federation dated July 6, 1998. Based on the provisions of these documents, this Program has been developed.

I. The state of Kazakh-Russian economic cooperation

In recent years, radical changes in the economies of the Republic of Kazakhstan and the Russian Federation have been accompanied by a weakening of economic and cooperative ties, a significant decline in production volumes and a deep decline in mutual trade. In the context of the financial crisis that has engulfed many enterprises, the imperfection of the settlement system, and the asymmetry of tax systems, the structure of trade has deteriorated and the use of barter in export-import operations has increased. Bilateral economic cooperation makes little use of the previously established specialization of enterprises in the field of fuel and energy, mining and metallurgical complexes, mechanical engineering and chemical industry, as well as the mobilization of financial and investment resources, the possibility of creating joint production structures. The participation of Kazakh and Russian business entities in the corporatization of enterprises located in the territories of both states, primarily in such areas as oil refining, energy, ferrous and non-ferrous metallurgy, is not developing with the manifestation of mutual interest. The opportunities associated with the development and implementation of interstate targeted programs aimed at solving problems of mutual interest in the field of production of various types of products, including technically complex and knowledge-intensive, in conducting fundamental research are not being used. The problems related to the coordination of transit regimes, tax collection systems, and fees have not been fully resolved. Opportunities for mutually beneficial cooperation in the field of pipeline transport and intersystem power transmission lines are not being used enough. The problems existing in the economic relations between the Republic of Kazakhstan and the Russian Federation require their solution and the development of a long-term strategy for mutually beneficial economic cooperation, which is the purpose of this Program.

II. The main goals and objectives of the program

This Program has been developed in order to ensure the implementation by the Republic of Kazakhstan and the Russian Federation on a long-term basis of an agreed set of measures to develop mutually beneficial economic ties, achieve significant progress in industrial cooperation between enterprises of the leading sectors of the economy of the two countries and increase mutual trade on this basis. The main objectives of this Program are to improve the standard of living of the population of the Republic of Kazakhstan and the Russian Federation and to meet the cultural needs of the peoples of both countries. To achieve these goals, the following tasks will have to be solved: ensuring the stable development of economic cooperation aimed at boosting the economies of both countries; cooperation in implementing institutional reforms, ensuring equal opportunities and guarantees for all business entities, creating conditions for fair competition, and regulating the activities of natural monopolies.; the convergence of conceptual approaches regarding the structural restructuring of the economies of both countries, the creation of incentives for production growth, investment in its development, the introduction of the latest scientific achievements and advanced technologies, improving the quality and competitiveness of products; the creation of a system of state support for priority areas of development of interstate and interregional cooperation, solving the problem of non-payment and ensuring a balanced trade and payment relationship between States; formation of targeted interstate projects and programs of economic cooperation, creation of joint integrated structures, interstate (transnational) financial and industrial groups; preservation and development of labor and intellectual potential; creation of support systems for mutually beneficial and effective use of existing infrastructure in the field of transport communications and its further development; interaction on the development of stock markets and the insurance market services; formation and improvement of the common information space.

III. Development of economic cooperation

The implementation of this Program will ensure the further development of the economic integration of the states, which will also contribute to improving the efficiency of the Customs Union and the Commonwealth of Independent States as a whole. The program activities are proposed to be carried out in the following areas: general issues of economic cooperation and cooperation in certain areas of activity. The general issues of economic cooperation on which it is envisaged to coordinate the actions of the Parties include: harmonization and unification of the regulatory framework in the field of creating joint business structures, conducting a coordinated pricing policy; deepening cooperation in monetary policy, investment, stock market, consumer protection; convergence of conceptual approaches regarding the structural restructuring of the economy. both states. The transformations to be carried out in the Republic of Kazakhstan and the Russian Federation within the framework of a coordinated structural policy are associated with a deep qualitative restructuring of the existing production potential and affect the interests of both states. In this regard, the Parties will consider proposals on the joint creation and development of structural industries, on ways and forms of equity participation in providing these industries with the necessary resources and the development of mutually beneficial direct production links between enterprises of the Republic of Kazakhstan and the Russian Federation. For the practical implementation of the agreed structural policy, it is planned to develop and implement interstate (joint) projects and programs. The main areas of cooperation in certain areas of activity are intersectoral cooperation in the field of fuel and energy and agro-industrial complexes, metallurgy, mechanical engineering, and transport. Military-economic cooperation, cooperation in the field of space exploration, as well as the use of the Baikonur cosmodrome and military test sites are envisaged. An important area is the coordination of the activities of scientific, design and engineering-technological organizations in order to effectively use the scientific potential of the Republic of Kazakhstan and the Russian Federation. Efforts will be coordinated to develop mutually beneficial cooperation in the field of healthcare and improve the sanitary and epidemiological situation, the production of medicines and medical equipment. The implementation of trade and economic cooperation involves an active exchange of necessary statistical information. It provides for the exchange of statistical publications, methodological materials, and coordination of principles for the formation of foreign trade statistics. It is planned to prepare proposals for the creation of a joint information system of the Republic of Kazakhstan and the Russian Federation on the state of supply and demand in the markets of goods and services. It provides for further improvement of the regulatory framework for solving joint problems in the field of social security, employment, working conditions, training highly qualified personnel for various industries, exchange of specialists, scientists, graduate students, interns and students, as well as interaction in the field of culture and art, physical education, sports, sanatorium and tourism. Cooperation in the field of environmental protection and improvement, prevention of transboundary pollution, rational and resource-saving use of natural resources will be further developed. Interregional cooperation should be developed, including in the border regions of the Republic of Kazakhstan and the Russian Federation, the most important direction of which will be the creation of favorable conditions for the socio-economic development of these territories, taking into account the established interregional economic ties, customs and spiritual values of the population living in them.

IV. Program implementation Management

In order to coordinate the implementation of this Program, a Coordinating Council for the Implementation of the Program (hereinafter referred to as the Coordinating Council) and working groups for the implementation of the main sections of the Program are being established within the framework of the joint intergovernmental commission on cooperation between the Republic of Kazakhstan and the Russian Federation. The Coordinating Council consists of Kazakh and Russian parts, each of which is headed by a Chairman appointed by the head of Government of the relevant Party. The Coordinating Council includes the heads of the working groups from the Kazakh and Russian Sides. Meetings of the Coordinating Council are held as necessary, but at least once a year, alternately in the Republic of Kazakhstan and the Russian Federation. The Chairman from the host Party chairs the meeting of the Coordinating Council. The main functions of the Coordinating Council are: coordination of activities for the implementation of this Program within the framework of national units; organization of the preparation of an annual action plan for the implementation of this Program and reports on the progress of the Program, which are submitted to meetings of the joint intergovernmental commission on cooperation between the Republic of Kazakhstan and the Russian Federation; organization of the preparation of draft intergovernmental agreements on issues related to the implementation and coordination of the implementation of this Program; preparation for consideration at meetings of the joint intergovernmental commission on cooperation between the Republic of Kazakhstan and the Russian Federation of certain issues related to the implementation of this Program; other functions determined by the rules of the Coordination Council. The Regulations of the Coordinating Council are reviewed and approved at a meeting of the Coordinating Council no later than 60 days from the date of entry into force of the Agreement between the Republic of Kazakhstan and the Russian Federation on Economic Cooperation for 1998-2007.

The Economic Cooperation Program between the Republic of Kazakhstan and the Russian Federationin 1998-2007.

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| |General issues of economic cooperation / | |

| I. |Preparation of proposals for: | | |

|1.2. |conducting an agreed pricing policy-| | |

| |ki: | | |

|1.2.1. |unification of legislation and regulations /CREAM |Ministry of Finance |

|1.2.1. |unification of legislation and regulations /CREAM |Ministry of Finance |

|1.2.3. |exchange of information about the DINA-|NSA |Ministry of Finance |

|1.4. | Stock market development | | |

| |the National Securities Commission of the Republic / | |

| |ci Kazakhstan and the Federal Commission for

|1.4.2. |exchange of information on regulatory issues /NCTSB |FCTSB |

| |regulation and control on the securities market | | |

|1.6. |development of commodity markets: | | |

| |development |NSA |SCC |

|2. |Preparation of intergovernmental projects| | |

|2.1. |on cooperation in the field of security |CREAM |GAK |

|3. | Fuel and energy complex | | |

|3.1. |Preparation of proposals for: | | |

| |organization of production, supplies and transit | | |

|3.1.3. |restoration and organization of parallel /MEIT |Mintopenergo |

| | and Russia, including according to the scheme of exchange- "gas of Central Asia" | |

| |between the transit of Kazakhstan and Russia- | | |

| |Russian gas through the territory of Kazakhstan and| | |

|3.1.6. |ensuring stable operation at the mine |MEIT /Mintopenergo |

| |Bogatyr of the Ekibastuz coal basin/ | Russia"|

| |research Institute of ownership of RAO UES of Russia / | |

| |the indicated sections and the solution of the issue | | |

|3.2. |Preparation of draft agreements: | | |

| |raw materials of the bottom of the Caspian Sea | | |

|3.3. |Development of joint programs and projects / | |

| |transportation of hydrocarbon raw materials | | |

| |the prospective Western section of Shubar- | | |

| |Kazakhoil Fuel and Energy Cooperation Agency | |

|4. | Mechanical engineering | | |

|4.1. |Preparation of proposals for creation | | |

|5. |Metallurgy | | |

| |research Institute of Specialization of ferrous enterprises and | |Ministry of Economy |

| |non-ferrous metallurgy and mutual supplies| | |

| |raw materials and products for production | | |

|5.2. |Coordination of conditions for sustainable development /MEIT |Ministry of Economy |

| |structures of metallurgi's raw materials enterprises- | |Ministry of Industry and Trade |

|6. |Transport | | |

|6.1. |Preparation of proposals for: | | |

| |passenger and transit transportation | |MPS |

| | | |FDS |

| |transport corridors, including | |MPS |

| |railway | |FAS |

| | | |FDS |

| | | | |

| | by these and Russian courts in accordance| | |

| |with the established order of arrival of ships | | |

|6.1.5. |the use of the port of Temryuk for transportation /by the Ministry of Transport|Ministry of Transport |

| |karmet" intended for the countries of the Middle Earth- | | |

| | transportation on the Caspian Sea between | | |

| |ports of Astrakhan-Olya-Aktau-Makhachkala with | | |

| |shipping Company (with the Christie's fleet/ | |

|7. | Agro-industrial complex | | |

|7.1. |Development and implementation of joint projects / | |

|7.1.1. |provision of agricultural machinery /Ministry of Agriculture |Ministry of Agriculture|

|7.2. |Preparation of proposals for cooperation| | |

| |provisions of the multilateral Agreement on | | |

| |cooperation in the field of veterinary medicine | | |

| | 1993 | | |

|8. |Military-economic cooperation | | |

|8.1. |Preparation of proposals for: | | |

| |repair and provision of services for military purposes| | |

|9. |Conducting joint work in the field of |Minnauki-AN|RKA |

| | | |commercial industry

|10. |Medical and microbiological | | |

| |industry in order to improve the provision of

|10.2. |Preparation of draft agreements: | | |

|10.2.1.|on the cooperative supply of medicines /Ministry of Agriculture |Ministry of Health |

| |medicines, supplements and vaccines for the populationMinistry of Agriculture and Food|

| |taking into account the Agreement on the establishment of the interstate

| |donation reserve of biological products and | | |

|11. |Building materials industry | | |

|11.1. |Preparation of draft agreements: | | |

| |for the extraction of raw materials and production | | |

|12. |Light industry | | |

| |karakul and sheepskin raw materials, harvested-| | |

| |being studied in the Republic of Kazakhstan | | |

|13. |Information and communication | | |

| |cooperation in the field of communications and information / |MIOS | /

|14. |Statistics | | |

|14.1. |Preparation of a draft agreement on cooperation |NSA |Goskomstat |

|14.2. |Preparation of proposals for the provision of |NSA |SCC |

|15. |Scientific and technical cooperation | | |

| |scientific and technical cooperation and | |RAO |

|15.2. |Preparation of proposals on the main nap- |MOKS |RW |

| |equality and the development of appropriate | | |

|15.3. |Ensuring the implementation of the joint program /Minnauki-AN|RAS |

| |the framework of cooperation between the National Academy of Sciences and the Russian Academy of Sciences | | |

| |training of highly qualified specialists / | |

| |communications within the framework of joint activities | | |

| |L. Gumilyov University and Moscow State University | | |

|16. |Environmental protection | | |

|16.2. |Development of joint programs for: | | |

|16.2.2.|preservation of the natural environment of the rivers Irtysh and |MPR |MPR |

| |action within the framework of the Concept of International

| |native trade in species of wild fauna and | | |

|17. |Social and labor relations | | |

|17.1. |Preparation of draft agreements: | | |

| |qualifications of specialists in educational | |RAS |

| |institutions of the Parties by specialty, by | |RAS |

|18. |Cooperation in solving regional | | |

|18.2. |Preparation of draft agreements: | | |

|18.2.1.|on coordinating the development of urban planning/MEIT |Minzemstroy |

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President

Republic of Kazakhstan

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