On approval of the Protocol on Amendments to 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 October 9, 2000 No. 458

In order to further deepen economic integration between the Republic of Kazakhstan and the Russian Federation

I decree:    

1. To approve the Protocol on amendments to U984184_  Agreement between the Republic of Kazakhstan and the Russian Federation on the settlement of mutual financial issues, signed in Moscow on April 29, 2000.    

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

     President of the Republic of Kazakhstan  

                            Agreement between the Republic of Kazakhstan and the Russian Federation on the settlement of mutual financial issues

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - entered into force on October 24, 2000)

    The Republic of Kazakhstan and the Russian Federation, 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, agreements and protocols, have agreed as follows:

                             Article 1

    The Parties acknowledge the existence of mutual financial obligations, including:

     from the Kazakh Side:       debt on government loans provided by the Russian Federation and accrued interest for the use of loans in the total amount of USD 1441.1 million, including:      In accordance with the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the reissue of technical loans outstanding in 1992 and January-June 1993 to a state loan to the Government of the Republic of Kazakhstan dated July 29, 1993 - USD 1,250 million for the principal debt and USD 123.1 million. in accordance with the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the state loan for 1993 dated July 29, 1993 - 68 million US dollars for the principal debt; from the Russian Side: arrears of rent for the use of the Baikonur complex in 1994-1998 in accordance with The Lease agreement for the Baikonur complex between the Government of the Republic of Kazakhstan and the Government of the Russian Federation dated December 10, 1994 - USD 575 million;      rent arrears for the use of military test sites in 1997-1998 in accordance with the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the Lease of the Sary-Shagan test site dated October 18, 1996, the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the Lease of the Emba test site dated October 18, 1996 year, The Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation 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 Republic of Kazakhstan and the Government of the Russian Federation on the Lease of facilities and combat fields of the 4 State Central Training Ground of the Russian Federation located on the territory of of the Republic of Kazakhstan dated October 18, 1996 in the total amount of 55 million US dollars;      compensation in accordance with the Agreement between the Republic of Kazakhstan and the Russian Federation 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 USD 1,318 million; compensation for 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 rubles. US dollars.                                

Article 2 Compensation for property losses and expenses of the Republic of Kazakhstan for the maintenance and operation of the Baikonur complex in 1992-1993, as defined in Article 1 of this Agreement, shall be reduced by the amount of 393.8 million US dollars incurred by the Russian Federation for the restoration of fixed assets of the Baikonur complex in 1992-1993.                                

Article 3       The parties agreed to include in their mutual financial obligations under this Agreement the debts of economic entities: debts owed by the state company Kazcontract JSC to Roscontract for 1993 - US$ 136.6 million; NES Kazakhstanenergo to RAO UES of Russia for 1994-1996 - US$99.6 million and RSE Kazakhstan temir Zholy" to the Ministry of Agriculture and Enterprises of Russia in 1997-1998 - 14.4 million US dollars.                                

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 Federation refuses to compensate for the costs incurred by the Russian side for the maintenance of citizens of the Republic of Kazakhstan residing in Baikonur 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       Since 1999, the transfer of rent for the use of the Baikonur complex and military test sites has been carried out 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, 50 million US dollars - in cash.      The parties agreed that from the date of entry into force of this Agreement, they 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 Republic of Kazakhstan and the Ministry of Finance of the Russian Federation, together with the National Bank of the Republic of Kazakhstan, the Central Bank of the Russian Federation and Vnesheconombank, to make changes resulting from the terms of this Agreement to the technical procedure for settlements and account management.                                

Article 8  

    This Agreement shall enter into force on the date of the last notification that the Parties have completed the necessary internal procedures and shall expire on the date of full fulfillment of obligations under this Agreement.

    Done in Almaty, Moscow on October 8, 1998, in two copies, each in the Kazakh and Russian languages, both texts being equally authentic.

    President                                   President of the Republic of Kazakhstan                       Of the Russian Federation  

Protocol on Amendments to the Agreement between the Republic of        Kazakhstan and the Russian Federation on the settlement of mutual financial issues

(Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - entered into force on October 24, 2000)

      The Republic of Kazakhstan and the Russian Federation, hereinafter referred to as the Parties, have agreed to amend the U984184_ Agreement between the Republic of Kazakhstan and the Russian Federation on the Settlement of Mutual Financial Issues, concluded in Almaty, Moscow on October 8, 1998, as follows:      

1. Article 3 of the Agreement should read as follows: "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 - 136.3 million US dollars; NES Kazakhstanenergo to RAO UES of Russia for 1994-1996 - 114.3 million US dollars".      The parties agreed to exclude from mutual financial obligations under the said Agreement the debt owed by RSE "Kazakhstan Temir Zholy" to the Ministry of Agriculture and Russian enterprises for 1997-1998 in the amount of USD 14.4 million.      

2. This Protocol is an integral part of the Agreement between the Republic of Kazakhstan and the Russian Federation on the Settlement of Mutual Financial Issues, concluded in Almaty, Moscow on October 8, 1998, and enters into force on the date of the last notification that the Parties have completed the necessary domestic procedures.

    Done in Moscow on April 29, 2000, in two copies, each in the Kazakh and Russian languages, both texts being equally authentic.

    In case of disagreement in the interpretation of the provisions of this Protocol, the Parties will be guided by the text in Russian.

    For the Republic of Kazakhstan For the Russian Federation  

(Experts: Umbetova A.M., Sklyarova I.V.)

President    

Republic of Kazakhstan     

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