On approval of the Agreement between the Republic of Kazakhstan and the Russian Federation on the settlement of mutual Financial issues

Decree of the President of the Republic of Kazakhstan dated December 24, 1998 No. 4184

I decree:      

1. To approve the Agreement between the Republic of Kazakhstan and the Russian Federation on the settlement of mutual financial issues, signed on October 8, 1998 in Almaty, Moscow.      

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

     President of the Republic of Kazakhstan

                            Agreement        

between the Russian Federation and the Republic of Kazakhstan          

on the settlement of mutual financial issues    

(Bulletin of International Treaties of the Republic of Kazakhstan, 2000, No. 4, Article 34) (Entered into force on July 14, 1999 - J. "Diplomatic Courier",              

special issue No. 2, September 2000, p. 174)    

     The Russian Federation and the Republic of Kazakhstan, hereinafter referred to as the Parties, guided by the spirit of the Declaration on Eternal Friendship and Alliance Oriented towards the 21st Century, recognizing the need to settle mutual financial obligations in accordance with bilateral treaties, have agreed as follows:                              

Article 1       The Parties acknowledge the existence of mutual financial obligations, including: on the Kazakh Side: arrears on government loans provided by the Russian Federation and interest accrued on the use of loans totaling USD 1,441.1 million, including:      in accordance with the Agreement between the Government of the Russian Federation and the Government of the Republic of Kazakhstan on the renewal of technical loan arrears based on the results of 1992 and January-June 1993. to the state loan to the Government of the Republic of Kazakhstan dated July 29, 1993 - US$ 1,250 million for the principal debt and US$ 123.1 million for interest accrued on the use of the loan; in accordance with the Agreement between the Government of the Russian Federation and the Government of the Republic of Kazakhstan on the State Loan for 1993 dated July 29, 1993 - US$ 68 million on the principal debt;      On the Russian Side: rent arrears for the use of the Baikonur complex in 1994-1998 in accordance with the U952195_ Lease Agreement for the Baikonur complex between the Government of the Russian Federation and the Government of the Republic of Kazakhstan dated December 10, 1994 in the amount of USD 575 million;      rent arrears for the use of military testing grounds in 1997 - 1998 in accordance with the Agreement between the Government of the Russian Federation and the Government of the Republic of Kazakhstan on the Lease of the Sary-Shagan test site dated October 18, 1996, the Agreement between the Government of the Russian Federation and the Government of the Republic of Kazakhstan on the Lease of the Emba test site dated October 18, 1996, the Agreement between the Government of the Russian Federation and the Government of the Republic of Kazakhstan on the lease of facilities and combat fields of the 929 State Flight Test Center of the Russian Federation located on the territory of the Republic of Kazakhstan, dated October 18, 1996, the Agreement between the Government of the Russian Federation and the Government of the Republic of Kazakhstan on the lease of facilities and combat fields of the 4 State Central Training Ground of the Russian Federation located on the territory of the Republic of Kazakhstan dated October 18, 1996 for a total amount of 55 million US dollars;      compensation in accordance with the B948000_ Agreement between the Russian Federation and the Republic of Kazakhstan on the Basic Principles and conditions of use of the Baikonur Cosmodrome dated March 28, 1994 for property losses and expenses of the Republic of Kazakhstan for the maintenance and operation of the Baikonur complex in 1992-1993 in the amount of 1318 million US dollars;      compensation of property losses and expenses of the Republic of Kazakhstan related to the operation of military testing grounds in 1992-1996 in accordance with the agreements on the lease of landfills mentioned in this article, totaling 137.5 million US dollars.                              

Article 2 The amount of compensation for property losses and expenses of the Republic of Kazakhstan for the maintenance and operation of the Baikonur complex in 1992-1993, specified in Article 1 of this Agreement, is reduced by 393.8 million US dollars spent by the Russian Federation on the restoration of fixed assets of the Baikonur complex in 1992-1993.                              

Article 3      

The footnote. Article 3 - as amended by Decree of the President of the Republic of Kazakhstan dated October 9, 2000 N 458 U000458_ .      

The parties agreed to include in their mutual financial obligations under this Agreement the debts of economic entities: debts owed by the state-owned company Kazcontract JSC to Roscontract for 1993 - US$ 136.3 million; NES Kazakhstanenergo to RAO UES of Russia for 1994-1996 - US$ 114.3 million.                              

Article 4        The Parties shall make one-time repayment of mutual financial obligations listed in Articles 1, 2 and 3 of this Agreement in the amount of 1691.7 million US dollars.                              

Article 5       The Russian Side refuses to compensate for the maintenance costs of citizens of the Republic of Kazakhstan residing in Baikonur, incurred by it from 1995 until Kazakhstan ratified the Agreement between the Republic of Kazakhstan and the Russian Federation on the Status of the city of Baikonur, the procedure for the formation and status of its executive authorities.                              

Article 6        The transfer of rent for the use of the Baikonur complex and military testing grounds has been carried out since 1999 in accordance with lease agreements.      In 1999, part of the rent for the use of the Baikonur complex in the amount of 65 million US dollars was paid in goods, in the amount of 50 million US dollars - in cash.      From the date of entry into force of this Agreement, the Parties will not link the payment of rent for the Baikonur complex and military testing grounds with the debts of business entities.                               Article 7        The Parties instruct the Ministry of Finance of the Russian Federation and the Ministry of Finance of the Republic of Kazakhstan, together with the Central Bank of the Russian Federation, Vnesheconombank and the National Bank of the Republic of Kazakhstan, to make changes to the technical procedure for settlements and account management resulting from this Agreement.                              

Article 8  

     This Agreement shall enter into force on the date of the last written notification by the Parties of the completion of the necessary domestic procedures and shall expire on the date of full fulfillment of obligations under this Agreement.      

Done in Alma Ata on October 13, 1998, in two copies, each in the Russian and Kazakh languages, both texts being equally authentic.

 President    

Republic of Kazakhstan     

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