On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the establishment of the Baiterek space Rocket Complex at the Baikonur Cosmodrome

The Law of the Republic of Kazakhstan dated October 21, 2005 No. 82.

      To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the establishment of the Baiterek space rocket complex at the Baikonur Cosmodrome, signed in Moscow on December 22, 2004.

     President of the Republic of Kazakhstan

Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the establishment of the Baiterek space missile complex at the Baikonur Cosmodrome

     (Official website of the Ministry of Foreign Affairs of the Republic of Kazakhstan - entered into force on December 15, 2005)

     The Government of the Republic of Kazakhstan and the Government of the Russian Federation, hereinafter referred to as the Parties,

     Guided by 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, the Agreement on Assistance in the Creation and Development of Industrial, Commercial, Credit, Financial, Insurance and Mixed Transnational Associations dated April 15, 1994, the Lease Agreement of the Baikonur complex between the Government of the Republic of Kazakhstan and the Government of the Russian Federation dated December 10, 1994 (hereinafter - Lease Agreement), an agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the procedure for moving goods across the border necessary to carry out work at the Baikonur Cosmodrome dated December 25, 1993,

     based on the provisions of the Agreement between the Republic of Kazakhstan and the Russian Federation on the Development of cooperation on the Effective Use of the Baikonur complex dated January 9, 2004,

     Having regard to the provisions of the Agreement between the Government of the Republic of Kazakhstan and the Russian Federation on Mutual Protection of Classified Information dated July 7, 2004,

     desiring to deepen the traditionally established industrial ties and cooperation between Kazakhstani and Russian enterprises and organizations, jointly develop and implement modern rocket and space technologies with a high level of environmental safety at the Baikonur cosmodrome,

     have agreed on the following:

Article 1

     The purpose of this Agreement is to define the basic principles and conditions of cooperation between the Parties in the creation and joint use of the new environmentally safe space rocket complex "Baiterek" based on the facilities of the ground-based space infrastructure of the Baikonur cosmodrome in order to carry out commercial space programs and projects, as well as the implementation of national space programs of the Republic of Kazakhstan and the Russian Federation.

Article 2

     For the purposes of this Agreement, the following terms are used:

     "The Baiterek space rocket complex is a complex designed for spacecraft launches by a promising Russian medium-class launch vehicle, the creation of which is provided for by the Federal Space Program of the Russian Federation for 2016-2025, with a high level of environmental safety. The Baiterek space rocket complex includes launch and technical complexes created on the basis of technical facilities, structures and communications of the Zenit-M space rocket complex at the Baikonur cosmodrome, training facilities for personnel training in the operation of ground-based space infrastructure facilities, a telecommunications and information support system, as well as areas where separable objects fall. parts of launch vehicles on the territory of the Republic of Kazakhstan and other objects of ground-based space and supporting infrastructure;

     "classified information" means information expressed in any form, protected in accordance with the laws of the states of each of the Parties, as well as generated during the cooperation of the Parties, the unauthorized dissemination of which may harm the security and interests of the Republic of Kazakhstan and/or the Russian Federation.;

     "confidential information" - any information that is not publicly available, other than classified information, regarding scientific, technical, commercial, industrial and other activities, including trade secrets and know-how protected by the disclosing Party or its enterprises and organizations from unauthorized access, dissemination and use, as well as information having actual or potential commercial value in due to the fact that it is unknown to third parties, there is no free access to it on a legal basis, and the owner of the information takes measures to protect its confidentiality. Confidential information includes any copies of documents containing confidential information, as well as any documents produced using or based on original documents containing confidential information.;

     "goods" - launch vehicles, upper stages, spacecraft, any other equipment necessary for preparation and launch, control and testing equipment, fuel, construction and other materials, mechanisms and equipment, as well as technologies in the form of information recorded on tangible media necessary for development, production or use during the implementation of space programs. The category of information includes other information expressed in any material form (computer software, including databases, trade secrets, know-how, production documentation and technical specifications);

     "executing organizations" are organizations of the Parties engaged by the Joint-stock Company "Kazakh-Russian Joint Venture "Baiterek" to carry out work on the creation and operation of the Baiterek space rocket complex, regardless of the form of ownership.

     The footnote. Article 2 as amended by the Law of the Republic of Kazakhstan dated 02/13/2020 No. 302.

Article 3

     In order to create the Baiterek space rocket complex and its further operation, the Parties form the Joint-Stock Company Kazakh-Russian Baiterek Joint Venture (hereinafter referred to as the Joint Venture).

     The joint venture is being created on the principles of equal participation of Kazakhstani and Russian specialists and organizations in the creation and operation of the Baiterek space rocket complex.

     The founder of the Joint Venture from the Kazakh Side is an organization authorized by the Government of the Republic of Kazakhstan.

     The founder of the Joint Venture on behalf of the Russian Side is the Federal State Unitary Enterprise Khrunichev State Space Research and Production Center.

     The founders contribute funds in the amount of 200 thousand US dollars each to the authorized capital of the Joint Venture.

     The joint venture is registered in Astana and carries out its activities in accordance with this Agreement, the legislation of the Republic of Kazakhstan and the constituent documents.

     The joint venture is subject to taxation in accordance with the legislation of the Republic of Kazakhstan.

     Work to ensure the launch of spacecraft under this Agreement is carried out in accordance with the procedure established by the legislation of the Russian Federation, under the guidance of the interstate commission of the Parties.

     The footnote. Article 3 as amended by the Laws of the Republic of Kazakhstan dated 02/13/2020 No. 302; dated 11/23/2021 No. 74-VII.

Article 4

     RCPI's note!      Article 4 is amended by the Law of the Republic of Kazakhstan dated 06/24/2015 No. 326-V (Confidential).

     To create the Baiterek space rocket complex, the Kazakh Side will provide the Joint Venture with a budget loan equivalent to 223 million US dollars for a period of 19 years with a 5-year grace period for repayment of the principal debt, with a 4-year grace period for remuneration, at a remuneration rate of 0.5 percent per annum, specifying the amount of the budget The loan is based on the results of the examination of the draft agreed by the Parties.

     The Kazakh side assigns the Development Bank of Kazakhstan Joint Stock Company to perform the functions of an agent for servicing a project funded by a budget loan.

     The loan fee will be calculated from the moment the money is credited to the Joint Venture account opened by the agent.

     The property of the Joint Venture is the security for the fulfillment of the obligations of the Joint Venture under the budget loan.

     In the event of claims against the Joint Venture related to foreclosure on its property, the Parties will ensure compliance with international regimes for the non-proliferation of weapons of mass destruction and their means of delivery.

Article 4-1

     The Kazakh Side provides financing in accordance with the procedure established by the legislation of the Republic of Kazakhstan (in the form of a state assignment):

     maintenance and operation of the facilities of the ground-based space infrastructure of the Zenit-M space rocket complex used for the creation and operation of the Baiterek space rocket complex, after their exclusion from the facilities leased by the Russian Side;

     reconstruction and modernization of ground-based space infrastructure facilities of the Zenit-M space rocket complex, including the launch and technical complexes (with the exception of control and verification equipment used in the preparation of the launch vehicle at the launch and technical complexes, as well as systems and assemblies with limited access), construction of new ground-based space infrastructure facilities, major repairs and reconstruction of existing ground-based space infrastructure facilities in order to create the Baiterek space rocket complex and launch automatic and manned spacecraft from it.;

     creation of educational and training facilities for personnel training in the operation of launch and technical complexes;

     allocation of fall areas for separable parts of launch vehicles on the territory of the Republic of Kazakhstan;

     modernization of the telecommunication and information support system;

     creation and modernization of supporting infrastructure facilities necessary for the operation of the Baiterek space rocket complex.

     The terms and amount of financing for the Baiterek space rocket complex project are determined by the feasibility study of the project.

     The Russian Side provides financing:

     creation of a promising medium-class launch vehicle;

     creation of a set of means of transportation of the components of the launch vehicle;

     modernization of the technical complex of the upper stage, the technical complex of the spacecraft, the technical complex of the space head unit;

     creation of a technical complex for a manned transport ship;

     modernization of the complex of measuring instruments, collection and processing of telemetric information;

     creation of control and verification equipment for a promising medium-class launch vehicle at technical and launch complexes.

     The footnote. The Agreement is supplemented by Article 4-1 in accordance with the Law of the Republic of Kazakhstan dated 02/13/2020 No. 302.

Article 4-2

     The obligations of the Joint Venture under the budget loan are converted into the authorized capital of the Joint Venture by additional placement of common shares and their transfer to the Kazakh Side that issued the budget loan.

     The State Corporation for Space Activities Roscosmos and (or) its organizations may transfer to the Kazakh Side the property necessary for the creation of the Baiterek space rocket complex, owned by them and located at the facilities of the Baikonur complex.

     The list of transferred property and the procedure for its transfer are approved by the Kazakh-Russian Intergovernmental Commission on the Baikonur complex.

     The transfer and acceptance of property is carried out by a joint commission established by the competent authorities of the Parties.

     The transfer and acceptance of property is carried out in accordance with the legislation of each of the States of the Parties in the field of export control.

     The Russian Side has the right to bring its share in the Joint Venture to parity with the Kazakh Side.

     The footnote. The Agreement is supplemented by Article 4-2, in accordance with the Law of the Republic of Kazakhstan dated 11/23/2021 No. 74-VII.

Article 5

     The parties are ensuring the start of flight tests of the Baiterek space rocket complex with a medium-class launch vehicle in 2023.

     The parties jointly ensure the fulfillment of commercial orders from the Baiterek space rocket complex for launching spacecraft into orbit with the Soyuz-5 launch vehicle and its possible modifications, in the amount of at least two launches per year.

     The Russian Side provides:

     implementation of at least three test launches of the Soyuz-5 launch vehicle from the Baiterek space rocket complex until 2025;

     placing orders for launching spacecraft from the Baiterek space rocket complex into orbit with the Soyuz-5 launch vehicle and its possible modifications, in the amount of at least two launches per year in the period from 2025 to 2036.

     The Kazakh Side provides:

     placing orders for launching spacecraft from the Baiterek space rocket complex into orbit with the Soyuz-5 launch vehicle and its possible modifications in the period from 2025 to 2036 as part of the implementation of state projects of the Republic of Kazakhstan.

     The footnote. Article 5 as amended by the Law of the Republic of Kazakhstan dated 11/23/2021 No. 74-VII.

Article 6

     In order to coordinate the activities for the implementation of this Agreement, the Parties appoint competent authorities.:

     from the Kazakh Side - the Ministry of Defense and Aerospace Industry of the Republic of Kazakhstan;

     On the Russian Side is the State Corporation for Space Activities Roscosmos.

     Within the framework of this Agreement, cooperation programs and projects, as well as principles, norms and procedures of an organizational, financial, legal and technical nature related to their implementation, entailing the performance of specialized activities, may be the subject of separate agreements and contracts concluded by the competent authorities of the Parties, a Joint Venture or executing organizations.

     In case of a change in the competent authority of one of the Parties, such a Party shall send a written notification to the other Party through diplomatic channels.

     The footnote. Article 6 as amended by the Law of the Republic of Kazakhstan dated 02/13/2020 No. 302.

Article 7

     The parties are not responsible for the obligations of the Joint Venture. The joint venture is not liable for the obligations of the Parties.

     The Parties' waiver of liability under the obligations of the Joint Venture does not apply to claims related to intellectual property, the protection of classified information and technology, and the consideration of these claims is regulated by the legislation of the State of the Party whose interests are violated.

     The joint venture independently determines the executing organizations to perform work under this Agreement, taking into account the legislation of the States of the Parties on the protection of classified information.

     The joint venture sends the list of executing organizations to the competent authority of the Kazakh Side for further transfer to the tax authority.

Article 8

     The Kazakh Side ensures the provision of the following preferences:

     a) works (services) Joint ventures, performing organizations of the Republic of Kazakhstan and contractors of performing organizations of the Republic of Kazakhstan, performed (rendered) directly in outer space, as well as preparatory ground work (services), technologically determined and inextricably linked with the performance of work (provision of services) directly in outer space, according to the annex, which is an integral part of this Agreement, are taxed for added value at a zero rate.

     The refund of value added tax on turnover taxed at a zero rate is carried out in accordance with the tax legislation of the Republic of Kazakhstan. At the same time, the executing organizations applying the zero value added tax rate in accordance with this subparagraph must be identified in the list of executing organizations specified in Article 7 of this Agreement.

     The basis for applying the zero value added tax rate is:

     for a Joint Venture, an agreement (contract) for the performance of works (provision of services) specified in the annex to this Agreement, and copies of documents confirming the performance of works (provision of services);

     for performing organizations - an agreement (contract) for the performance of work (provision of services) concluded directly with the Joint Venture, and copies of documents confirming the performance of work (provision of services) for the Joint Venture;

     for contractors of performing organizations of the Republic of Kazakhstan - an agreement (contract) for the performance of works (provision of services) concluded directly with the performing organization, which has an agreement (contract) for the performance of works (provision of services) with a Joint Venture, and copies of documents confirming the performance of works (provision of services) for the performing organization. In this case, the indication of the performance of works (provision of services) by the contractor for the executing organization of the Republic of Kazakhstan and the types of work performed by the contractor (services provided) must be determined in the contract concluded between the Joint Venture and the executing organization.;

     b) exemption of the Joint Venture from paying corporate income tax for a period of 15 years from the date of commissioning of the Baiterek space rocket complex by the state acceptance Commission for income received from performing works (rendering services) specified in the annex to this Agreement;

     c) exemption of the Joint Venture from property tax on objects of taxation directly used in carrying out activities related to the performance of works (provision of services) specified in the annex to this Agreement;

     d) exemption of the Joint Venture from land tax and payment for the use of land plots on land plots allocated and used for the implementation of activities of the Joint Venture related to the performance of works (provision of services) specified in the annex to this Agreement;

f) the import of goods carried out by a Joint Venture and executing organizations of the Republic of Kazakhstan for the purpose of creating and ensuring the operation of the Baiterek space rocket complex is not subject to quotas, licensing, or other restrictions.

Article 9

     In order to implement this Agreement, the Russian side grants preferences to performing organizations registered in the Russian Federation in accordance with the legislation of the Russian Federation. Supplies of goods to the Baikonur cosmodrome are carried out without the use of a quota regime.

Article 10

     In order to create the Baiterek space rocket complex, the Parties grant the Joint Venture the right to create new structures (facilities) and make separable and inseparable improvements to existing structures (facilities) of the ground-based space infrastructure of the Baikonur cosmodrome in agreement with the competent authorities of the Parties.

     In order to implement this Agreement, the facilities of the Zenit-M space rocket complex, according to the list approved by the competent authorities of the Parties, are excluded from the facilities of the Baikonur complex leased by the Russian Side and transferred to the Kazakh Side in accordance with the procedure established by the Lease Agreement until June 1, 2018.

     The Kazakh Side ensures the transfer of the specified Zenit-M space rocket complex facilities to the Joint Venture in accordance with the legislation of the Republic of Kazakhstan.

     If necessary, other structures (facilities) of the Baikonur complex may be transferred to the Joint Venture with their exclusion from the leased facilities of the Baikonur complex in accordance with the procedure established by the Lease Agreement.

     The footnote. Article 10 as amended by the Law of the Republic of Kazakhstan dated 02/13/2020 No. 302.

Article 11

     The state examination of the construction project of the Baiterek space rocket complex facilities created for the purpose of implementing this Agreement is carried out in accordance with the legislation of the Republic of Kazakhstan.

     The footnote. Article 11 as amended by the Law of the Republic of Kazakhstan dated 02/13/2020 No. 302.

Article 12

     When launching spacecraft using the Baiterek space rocket system, the functions of the launching State are performed by the Russian Federation.

     The Parties are jointly and severally liable for damage caused by space objects during the implementation of space programs using the Baiterek space rocket complex in accordance with the Convention on International Liability for Damage Caused by Space Objects of March 29, 1972, in proportion to the degree of their guilt.

     The types of risks to be insured, as well as the conditions and procedure for insurance during the preparation and implementation of spacecraft launches using the Baiterek space rocket complex, are determined by agreement between the competent authorities of the Parties.

Article 13

     The liability, amount, procedure and terms of compensation for damage that may be caused during the performance of work under this Agreement are determined in accordance with the legislation of the States of the Parties through negotiations.

Article 14

     Issues of protection, distribution and use of intellectual property created or transferred during cooperation under this Agreement are determined in accordance with the laws of the States of the Parties, as well as international treaties to which the Republic of Kazakhstan and the Russian Federation are parties.

     Cooperation under this Agreement does not affect the rights of the executing organizations, competent authorities and the Parties to intellectual property acquired by them prior to the commencement of joint activities under this Agreement or outside it.

     Each Party undertakes to take all necessary measures provided for by the legislation of its State to ensure the protection of classified information during the implementation of this Agreement, as well as control over the confidentiality of information transmitted during cooperation under this Agreement by its competent authorities, executing organizations and the Joint Venture. At the same time, confidential information must be designated as such by a Party, competent authority, Joint Venture or performing organization that require confidentiality.

     If, in order to implement this Agreement, it is deemed necessary to transfer information or exchange information, the procedure for handling which is determined by the legislation of the States of the Parties, they shall take appropriate decisions for this purpose in the form established by the legislation of the States of the Parties.

     Any information on joint developments carried out under this Agreement may be transmitted to a party that is not a party to it only by mutual written consent of the competent authorities of the Parties.

Article 15

     The Parties, their competent authorities, the Joint Venture and the executing organizations shall take the necessary measures in accordance with the laws of the States of the Parties and the norms of international law to prevent unauthorized access to protected goods and technologies related to the performance of work under this Agreement and unauthorized transfer of such technologies and goods to third parties. To this end, the founding organization of the Joint Venture from the Russian Side, with the participation of the executing organizations and the Joint Venture, develops technology protection plans, which are submitted for approval to the competent authorities of the Parties.

     Technology protection plans should include a general list of protected goods and technologies, security measures and the allocation of responsibilities for participants in joint programs and projects at all stages of the creation and use of the Baiterek space rocket complex, taking into account the requirements of the Missile Technology Control Regime.

Article 16

     During their stay at the Baikonur cosmodrome, employees of the Joint Venture are required to comply with all rules and regulations related to staying at facilities with a special safe operation regime. These rules and regulations are communicated to employees by the Baikonur Cosmodrome regime service.

Article 17

     The resolution of disputes regarding the interpretation and application of the provisions of this Agreement, as well as the settlement of the consequences of unforeseen and insurmountable situations (force majeure), will be carried out through mutual consultations and negotiations or through other procedures agreed by the Parties or their competent authorities.

Article 18

     If laws and other regulatory legal acts of the States of the Parties adopted after the entry into force of this Agreement or international agreements to which the Parties are simultaneously Parties provide for more favorable conditions for the Joint Venture, these favorable conditions will apply.

Article 19

     This Agreement does not affect the rights and obligations of the Parties and their competent authorities arising from other international treaties concluded by them.

Article 20

     This Agreement shall be temporarily applied from the date of its signing and shall enter into force from the date of receipt of the last notification on the completion by the Parties of the internal procedures necessary for its entry into force.

     This Agreement may be amended and supplemented by concluding separate protocols, which will form an integral part of this Agreement and enter into force in accordance with the procedure provided for in this article.

     This Agreement is valid until the expiration of the Lease Agreement or until the expiration of one year from the date when one of the Parties receives a written notification from the other Party of its intention to terminate it.

     Unless otherwise agreed by the Parties, termination of this Agreement in accordance with the procedure provided for in this article shall not affect the implementation of unfinished projects and programs under this Agreement. Termination of this Agreement is not a legal basis for legal entities to review or unilaterally fail to comply with contractual obligations that arose in connection with this Agreement prior to its termination.

     Done in Moscow on December 22, 2004, in two originals, each in the Kazakh and Russian languages, both texts being equally authentic.

For the Government

For the Government

Republic of Kazakhstan

Of the Russian Federation

Annex to the Agreement between the Inter-Government of the Republic of Kazakhstan and the Government of the Russian Federation on the Establishment of the Baiterek Space missile Complex at the Baikonur Cosmodrome

A list of works (services) performed (rendered) directly in outer space, as well as preparatory ground-based works (services) that are technologically conditioned and inextricably linked to the performance of works (services) directly in outer space, for which preferences are provided in accordance with Article 8 of the Agreement

     1. Works (services) performed (rendered) directly in outer space:

     launching of spacecraft, orbital stations and other space systems into outer space;

     operation of space technology for communication, data transmission, television and radio broadcasting;

     operation of satellite navigation and topogeodetic systems;

     the use of spacecraft to observe objects and phenomena;

     testing of spacecraft directly in space conditions;

     works (services) performed (rendered) using spacecraft located directly in outer space;

     flight control and communication of space systems, spacecraft (objects), including those carried out from the Earth's surface;

     scientific research (fundamental and applied) using both manned and automated vehicles;

     remote sensing of the Earth and other planets from space, environmental monitoring and meteorology from spacecraft, including the operation of these devices.

     2. Preparatory ground operations (services), technologically determined and inextricably linked with the performance of work (provision of services) directly in outer space:

     manufacture of special fuel and its means of delivery, delivery and refueling of spacecraft and their launch vehicles;

     transportation of spacecraft and their delivery vehicles to their test and launch sites and return to the manufacturing facility;

     receiving information from spacecraft, orbital stations and other space systems, processing it and bringing it to the consumer;

     theoretical and design-search research related to the substantiation and support of design developments of rocket and space technology, production of rocket and space technology and its operation;

     design, construction, production and testing of spacecraft, orbital stations, launch vehicles and their components, including: missile, aviation and other complexes and their constituent launch vehicles, launch aircraft, upper stages, and means of their preparation, storage and transportation;

     design, construction, production and testing of specialized control systems for spacecraft and their means of delivery, as well as means of telemetric monitoring of the functioning of spacecraft and their means of launch;

     design, construction, production and testing of life support systems for spacecraft and their launch vehicles;

     design, construction, production and testing, retrofitting and operation (maintenance) of technical and technological systems and their components of the ground-based space infrastructure providing transportation, storage, testing, launch of rocket and space complexes and control of spacecraft in flight;

     investigation of flight and space accidents;

     creation, maintenance and operation of test and control centers, launch and technical complexes, airfields and other ground-based space infrastructure facilities and their components, including the provision of construction and installation services, as well as components of units, systems, etc., intended for reception, storage, transportation and testing, preparation for launch, launching rockets, launching spacecraft (objects);

     post-flight maintenance and/or repair of spacecraft and their delivery vehicles;

     implementation of warranty supervision over space vehicles and their means of delivery, including repair and restoration work during operation;

     disposal of rocket and space technology systems and equipment.

© 2012. RSE na PHB "Institute of Legislation and Legal Information of the Republic of Kazakhstan" of the Ministry of Justice of the Republic of Kazakhstan  

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