annual deficit of the consolidated budget of a state-controlled sector shall not exceed 3 percent of the gross domestic product;
debt of a state-controlled sector shall not exceed 50 percent of the gross domestic product;
inflation rate (consumer price index) per annum (December to December of the previous year, in percent) shall exceed the inflation rate in
the Member State with the lowest value by not more than 5 %.
Section XIV. Monetary Policy
Article 64. Purposes and Principles of Harmonized Monetary Policy
1. In order to deepen their economic integration, develop cooperation in the monetary sphere, ensure free movement of goods, services and capital on the territories of the Member States, enhance the role of national currencies of the Member States in foreign trade and investment operations, as well as to ensure mutual convertibility of their currencies, the Member States shall develop and implement agreed monetary policy based on the following principles:
1)phased harmonisation and convergence of approaches to the formation and implementation of their monetary policy to the extent corresponding to the current macroeconomic integration and cooperation requirements;
2) establishment of the required organisational and legal conditions at the national and interstate levels for the development of integration processes in the monetary sphere, as well as for the coordination and harmonisation of monetary policy;
3) inapplicability of any actions in the monetary sphere that may adversely affect the development of integration processes and, when such actions are inevitable, ensuring minimisation of their consequences;
4) implementation of economic policy aimed at increasing confidence in the national currencies of the Member States, both in the internal currency market of each Member State and in international currency markets.
2. In order to conduct agreed monetary policy, the Member States shall implement measures in accordance with Annex 15 to this Treaty.
3.Exchange rate policy shall be coordinated by an independent authority consisting of the heads of national (central) banks of the Member States, with its activities determined under an international treaty within the Union.
4. Agreed approaches of the Member States to the regulation of currency relations and liberalisation measures shall be determined under an international treaty within the Union.
Section XV. Trade In Services, Establishment, Activities and Investments
Article 65. Objectives and Purposes, Scope of Application
1. The purpose of this Section is to ensure freedom of trade in services, incorporation, activities and investments within the Union in accordance with the terms of this Section and Annex 16 to this Treaty.
The legal basis for the regulation of trade in services, incorporation, activities and investments in the Member States shall be specified in Annex 16 to this Treaty.
2. The provisions of this Section shall be applied to all measures taken by the Member States with regard to the delivery and receipt of services, as well as incorporation, activities and investments.
The provisions of this Section shall not apply:
to state (municipal) procurement transactions governed by Section XXII of this Treaty;
to services delivered and activities carried out as part of the functions of the state government.
3. Services covered by Sections XVI, XIX, XX and XXI of this Treaty shall be governed by the provisions of these Sections respectively. The provisions of this Section shall be applied insofar as they do not conflict with the above Sections.
4. Specific features of legal relations arising in connection with trade in telecommunication services shall be determined under the Procedure for Trade in Telecommunication Services (Annex 1 to Annex 16 to this Treaty).
5. Specific features of entry, exit, stay and employment of natural persons shall be governed by Section XXVI of this Treaty insofar as they do not conflict with this Section.
6. Nothing in this Section shall be construed as:
1) requiring any Member State to provide any information the disclosure of which is considered by such state as contrary to its essential security interests;
2) preventing any Member State from taking any action it deems necessary to protect its essential security interests through the adoption of legislation, including:
with regard to the supply of services, directly or indirectly, for the purpose of supplying a military institution;
with regard to fissionable and fusionable materials or materials they are derived from;
any action taken in time of war or other emergency in international relations;
3) preventing any Member State from taking any action required to fulfil its obligations under the Charter of the United Nations in order to maintain international peace and security.
7. No provision of this Section shall prevent the Member States from taking or adopting any measures:
1) required to protect public morals or maintain public order. Exceptions with regard to the public order may only be applied in cases where there is a genuine and sufficiently serious threat to one of the fundamental interests of the society;
2) required to protect life or health of people, animals or plants;
3) required to comply with the legislation of the Member States that is not contrary to the provisions of this Section, including those related to:
the prevention of misleading and fraudulent practices or consequences of non-compliance with civil law contracts;
the protection of privacy of individuals in processing and dissemination of personal data and the protection of confidentiality of individual records and accounts;
security;
4) inconsistent with paragraphs 21 and 24 of Annex 16 to this Treaty, provided that the difference in the actually provided treatment is aimed at ensuring equitable or effective imposition of direct taxes and their collection from nationals of another Member State or third states in respect of trade in services, creation and management, and that such measures shall not conflict with the provisions of international treaties of the Member States;
5) inconsistent with paragraphs 27 and 29 of Annex 16 to this Treaty, provided that the difference in treatment is the result of an agreement on taxation, including that on the avoidance of double taxation, to which the respective Member State is a participant.
8. No measures stipulated in paragraph 7 of this Article shall lead to arbitrary or unjustifiable discrimination between the Member States or any disguised restrictions on trade in services, as well as on incorporation, activities and investments.
9. If a Member State maintains restrictions on trade in services, as well as on the incorporation, activities and investments, in respect of a third state, nothing in this Section shall be construed as obliging this Member State to extend the provisions of this Section to persons from another Member State if such persons belong to or are controlled by the said third state, and the extension of the provisions of this Section would lead to circumvention or violation of these prohibitions and restrictions.
10.A Member State may not extend its obligations assumed in accordance with this Section on a person from another Member State in respect of trade in services, incorporation, activities and investments, if it is proven that this person of another Member State does not conduct any significant business operations on the territory of that (another) Member State and belongs to or is controlled by a person from the first Member State or a third state.
Article 66. Liberalization of Trade In Services, Establishment, Activities and Investments
1. The Member States shall not introduce new discriminatory measures with regard to the trade in services, incorporation and activities of persons of other Member States as compared with the regime in force at the date of entry into force of this Treaty.
2.In order to ensure freedom of trade in services, incorporation, activities and investments, the Member States shall conduct gradual liberalisation of mutual conditions of trade in services, incorporation, activities and investments.
3. The Member States shall seek to establish and ensure the functioning of a common market for services as set out in paragraphs 38-43 of Annex 16 to this Treaty for the maximum number of service sectors.
Article 67. Principles of Liberalization of Trade In Services, Establishment, Activities and Investments
1. The liberalisation of trade in services, incorporation, activities and investments shall be conducted with due account of international principles and standards through the harmonisation of the legislation of the Member States and organizing mutual administrative cooperation between the competent authorities of the Member States.
2. In the process of liberalisation of trade in services, incorporation, activities and investments, the Member States shall be guided by the following principles:
1) optimisation of internal control: gradual simplification and/or elimination of excessive internal regulations, including licensing requirements and procedures for suppliers, service recipients, persons engaged in incorporation or activities, and investors with account of the best international regulation practices for specific service sectors and, when such practices are unavailable, by selecting and applying the most advanced models of the Member States;
2) proportionality: requirement for and sufficient levels of harmonisation of the legislation of the Member States and mutual administrative cooperation for the efficient functioning of the services market, incorporation, activities, or investments;
3) mutual benefit: liberalisation of trade in services, incorporation, activities and investments on the basis of equitable sharing of benefits and obligations with account of the sensitivity of service sectors and types of activities for each Member State;
4) coherence: adoption of any measures relating to the trade in services, incorporation, activities and investments, including harmonisation of the legislation of the Member States and administrative cooperation based on the following:
no deterioration of mutual access conditions shall be allowed for any service sector and type of activities as compared to the conditions prevailing as of the date of signing this Treaty and the terms and conditions set forth in this Treaty;
gradual reduction of restrictions, exemptions, additional requirements and conditions stipulated by individual national lists of restrictions, exemptions, additional requirements and conditions to be approved by the Supreme Council, referred to in indent 4 of paragraph 2 and paragraphs 15- 17, 23, 26, 28, 31, 33 and 35 of Annex 16 to this Treaty;
5) economic feasibility: as part of the creation of a common market of services as stipulated in paragraphs38-43 of Annex16 to this Treaty, liberalisation of trade in services on a priority basis with regard to service sectors most intensely affecting the cost, competitiveness and/or amounts of goods manufactured and sold in the internal market of the Union.
Article 68. Administrative Cooperation
1. The Member States shall assist each other in ensuring efficient cooperation between competent authorities on matters governed by this Section.
In order to ensure efficient cooperation, including the exchange of information, the competent authorities of the Member States shall conclude agreements.
2. Administrative cooperation shall include:
1) prompt information exchange between competent authorities of the Member States with regard to both entire service sectors and specific market participants;
2) establishment of a mechanism to prevent violations of the rights of service providers and legitimate interests of consumers, bona fide market participants, as well as public (state) interests.
3. Competent authorities of a Member State may request competent authorities of other Member States, as under the agreements concluded, to provide any information related to the jurisdiction of the latter and required for the effective implementation of the requirements in this Section, including information regarding:
1) persons of such other Member States that have incorporated or are supplying services on the territory of the first Member State and, in particular, information confirming that such persons are actually incorporated in their territories and that, according to the competent authorities, these persons are engaged in entrepreneurial activities;
2) permits issued by the competent authorities and types activities for which the permits have been issued;
3) administrative measures, criminal and legal sanctions and insolvency (bankruptcy) recognition decisions adopted by the competent authorities in relation to respective persons and directly affecting the jurisdiction or professional reputation of such persons. Competent authorities of a Member State shall submit any requested information to requesting competent authorities of another Member State, including that on liability incidents for persons having completed incorporation or supplying services on the territory of the first Member State.
4. Administrative cooperation of competent authorities of the Member States (including those exercising control and supervision functions in respect of activities) shall be carried out in order to:
1) create an efficient system to protect the rights of beneficiaries of one Member State at delivery of these services by a supplier from another Member State;
2) execute tax-related and other obligations by suppliers and recipients of services;
3) eliminate unfair business practices;
4) ensure reliability of statistical data on the amounts of services for the Member States.
5.If a Member State becomes aware of any actions of service providers, persons engaged in incorporation or activities or investors that may harm the health or safety of people, animals, plants or the environment on the territory of that Member State or on the territories of other Member States, the first Member State shall inform all Member States and the Commission thereof as soon as possible.
6. The Commission shall assist in the creation and participate in the functioning of information systems of the Union on the matters governed by this Section.
7. The Member States may inform the Commission of any failure of other Member States to fulfil their obligations under this Article.
Article 69. Transparency
1. Each Member State shall ensure transparency and availability of its legislation on matters governed by this Section.
For this purposes, all regulatory legal acts of a Member State that affect or may affect the matters governed by this Section shall be published in an official source and, if possible, also on the corresponding website on the information and telecommunications network “Internet” (hereinafter “the Internet”) so that any person whose rights and/or obligations may be affected by such regulatory legal acts could become familiar with them.
2. Regulatory legal acts of the Member States referred to in paragraph 1 of this Article shall be published within time limits ensuring legal certainty and responding to reasonable expectations of persons whose rights and/or obligations may be affected by these regulatory legal acts, but in any case before their effective dates (entry into force).
3. The Member States shall ensure preliminary publication of draft regulatory legal acts specified in paragraph 1 of this Article.
The Member States shall post on the Internet, on official websites of governmental agencies responsible for development of draft regulatory legal act or on specially created websites for draft regulations, all information regarding the procedures for filing individual comments and suggestions to such acts, as well as information on the duration of public discussion of draft regulatory legal acts in order to enable all interested persons to send their comments and suggestions.
Draft regulatory legal acts shall be generally published within 30calendar days before the date of their adoption. Such preliminary publication shall not be required in exceptional cases requiring rapid response, as well as in cases where preliminary publication of draft regulatory legal acts may prevent their execution or otherwise be contrary to the public interest.
All comments and/or suggestions received by the competent authorities of the Member States during public discussions shall be taken into account to the extent possible when finalizing draft regulatory legal acts.
4. Publications of (draft) regulatory legal acts referred to in paragraph 1 of this Article shall include explanation of the purpose of their adoption and implementation.
5. The Member States shall establish mechanisms for responding to written or electronic requests from any persons regarding any acting and/or planned regulatory legal acts referred to in paragraph 1 of this Article.
6.The Member States shall ensure consideration of appeals from persons from other Member States on matters governed by this Section, in accordance with their legislation in the procedure determined for their own nationals.
Section XVI. Regulation of the Financial Markets
Article 70. Purposes and Principles of the Regulation of Financial Markets
1. The Member States shall conduct agreed regulation of financial markets within the Union in accordance with the following objectives and principles:
1) deepening economic integration of the Member States in order to create a common financial market within the Union and to ensure non- discriminatory access to the financial markets of the Member States;
2)ensuring guaranteed and effective protection of the rights and legitimate interests of consumers of financial services;
3) enabling mutual recognition of licenses in the banking and insurance sectors, as well as in the service sector in the securities market for securities issued by authorised authorities of one Member State on the territory of other Member States;
4) identification of approaches to risk management in the financial markets of the Member States in accordance with international standards;
5) determination of requirements for banking and insurance activities and activities in the securities market (prudential requirements);
6) determination of the procedure for exercising supervision over the activities of financial market participants;
7) ensuring transparency of activities of financial market participants.
2. In order to enable free movement of capital in the financial market, the Member States shall apply the following basic forms of cooperation, including:
1) exchange of information, including confidential information, between authorised authorities of the Member States on the management and development of banking and insurance operations and activities in the securities market, control and supervision in accordance with an international treaty within the Union;
2)carrying out agreed activities to discuss current and potential problems in the financial markets and to develop proposals to address them;
3) carrying out by competent authorities of the Member States mutual consultations regarding the regulation of banking and insurance operations and activities in the securities market.
3. In order to achieve the objectives set out in paragraph 1 of this Article, the Member States shall, in accordance with an international treaty within the Union and with account of Annex 17 to this Treaty and Article 103 of this Treaty, harmonise their legislation on financial markets.
Section XVII. Taxes and Taxation
Article 71. Principles of Member States Cooperation In the Field of Taxation
1. All goods imported from the territory of one Member State to the territory of another Member State shall be subject to indirect taxation.
2. In mutual trade, the Member States shall levy taxes and other fees and charges in such a way to ensure that taxation in the Member State where goods of other Member States are sold is no less favourable than the taxation applied by this Member State under the same circumstances in respect of like products originating from its territory.
3. The Member States shall determine the directions, forms and procedures for the harmonisation of legislation in respect of taxes affecting their mutual trade so as to prevent violation of any terms of competition and interference with the free movement of goods, works and services at the national level or at the level of the Union, including:
1)harmonisation (convergence) of excise tax rates for the most sensitive excisable goods;
2) further improvement of the system of collection of value added taxes in mutual trade (including the use of information technology).
Article 72. Principles of Indirect Taxes Collection In Member States
1. Indirect taxes in mutual trade in goods shall be collected by the country of destination with the application of zero value added tax rate and/or exemption from excise duty on the export of goods and indirect taxation on import.
Collection of indirect taxes and the mechanism for controlling their payment on export and import of goods shall be carried out in the procedure according to Annex 18 to this Treaty.
2. Indirect taxes on the performance of works and provision of services shall be collected in the Member State the territory of which is recognised as the place of sale of these works and services.
Indirect taxes on the performance of works and provision of services shall be collected in the procedure provided for by Annex 18 to this Treaty.
3. Tax authorities of the Member States shall exchange all information required to ensure complete payment of indirect taxes in accordance with an international interagency treaty and this treaty shall determine as well the procedure for information exchange, the application form for import of goods and payment of indirect taxes, application filling regulations and requirements to the exchange format.
4. When importing goods into the territory of one Member State from the territory of another Member State, indirect taxes shall be levied by tax authorities of the Member State to the territory of which goods are imported, unless otherwise determined by the legislation of that Member State with regard to goods subject to marking with excise stamps (accounting and control marks and labels).
5. The rates of indirect taxes in mutual trade in goods imported into the territory of a Member State shall not exceed the rates of indirect taxes imposed on like products sold on the territory of that Member State.
6. Indirect taxes shall not be levied on import into the territory of a Member State of:
1) goods that are, in accordance with the legislation of that Member State, not subject to taxation (exempt from tax) on import into its territory;
2) goods imported into the territory of a Member State by natural persons, not for the purpose of business activities;
3) goods imported into the territory of one Member State from the territory of another Member State in connection with their transfer within a single juridical person (the legislation of a Member State may require mandatory notification of tax authorities of the import (export) of such goods).
Article 73. Income Taxation of Natural Persons
If one member State in accordance with its legislation and provisions of international treaties is entitled to levy the income of a tax resident (person with a permanent residence) of another member State earned in connection with employment in the first member State, such income shall be levied in the first member State as of the first day of employment at the rates established for such incomes of natural persons that are tax residents (persons with permanent place of residence) of this first member State. The provisions of this Article shall apply to taxation of income related to employment earned by the citizens of member States.
Section XVIII. Common Principles and Rules of Competition
Article 74. General Provisions
1. The subject of this Article is establishment of common principles and rules of competition, providing detection and restraint of anticompetitive practices in the territory of the member States and actions, adversely affecting competition on transboundary markets in the territory of two and more member States.
2. The provisions of this sector are applied to relationship, connected with implementation of competition (antimonopoly) policy in the territory of the member States, and to the relationship with participation of business entities (market participants) of the member States, which adversely affect or may affect competition on transboundary markets in the territory of two and more member States. Criteria of reference of the market to transboundary for the purposes of determining competence of the Commission are established by the decision of the Supreme council.
3. The member States are eligible to establish additional prohibitions in the legislation, and additional requirements and limitations regarding prohibitions, provided for in Article 75 and 76 of this Treaty.
4. The member States pursue the aligned competition (antimonopoly) policy regarding actions of business entities (market participants) of the third countries, if these actions may adversely affect the condition of competition on the goods markets of the member States.
5. Nothing in this section should not be interpreted as preventing any member State from taking any measures it considers necessary for protection of the major interests of national defense or security of the State.
6. Provisions of this section are applied to natural monopoly entities as provided for by this Treaty.
7. Implementation of provisions of this Article is performed pursuant to Annex 19 to this Treaty.
Article 75. Common Principles of Competition
1. Application by the member States of the provisions of their competition (antimonopoly) legislation to business entities (market entities) of the member States is carried out similarly and equally irrespective of legal form and place of registration of such business entities (market entities ) on equal terms.
2. The member States establish prohibitions in their legislation, including on the following:
1) agreements between public authorities, local governments, other authorities or organizations carrying out their function or between them and business entities (market entities) if such agreements lead to or may lead to prevention, restriction or elimination of competition, except for the cases provided by this Treaty and/or by other international agreements of the member States;
2) granting of the State or municipal preferences, except for the cases provided for in the legislation of the member States and with consideration of specificities as provided for by this Treaty and/or other international agreements of the member States.
3. The Member states take effective measures for the prevention, identification and suppression of the actions (inaction) provided by subparagraph 1 of paragraph 2 of this Article.
4. The member States in accordance with their legislation ensure effective control over economic concentration to the extent necessary for the protection and development of competition in the territories of each member State.
5. Each member State provides existence of the national authority of the government whose competence includes implementation and (or) carrying out competition (antimonopoly) policy, which means, inter alia, granting to such authority powers to control observance over prohibition of anti-competitive actions and prohibition of unfair competition, control over economic concentration, and also powers on prevention, identification of violation of the competition (antimonopoly) legislation, take measures on termination of the mentioned violation and bringing to responsibility for such violation (hereinafter – the authorized body of the member State).
6. The member States establish in their legislation effective sanctions for conducting anticompetitive actions regarding business entities (market entities) and officials of authorized bodies, based on the principles of effectiveness, proportionality, security, inevitability and definiteness, and provide control of their application. The member States recognize that in case of application of penalties, the highest penalties have to be established for the violations constituting the greatest threat for competition (agreements limiting competition, abuse of the dominant position by business entities (market entities) of the member States), thus the preferable fines are estimated from the sum of revenues of the offender gained from sale of goods or from the sum of expenses of the offender on purchase of goods, in the market where the violation took place.
7. The member States pursuant to their legislation provide informational openness of competition (antimonopoly) policy pursued by them, including by publication of information on activity of the authorized bodies of the member States in mass media and the Internet.
8. Authorized bodies of the member States in accordance with the legislation of their State and this Treaty carry out cooperation by sending notices, requests for providing information, carrying out consultations, informing on the investigations (hearing of cases) affecting interests of the other member State, carrying out investigations (hearing of cases) at the request of the authorized body of one of the member States and informing on its results.
Article 76. Common Rules of Competition
1. Actions (inaction) of the business entities (market entities) with a dominant position resulted in prevention, restriction, elimination of the competition and (or) infringement of interests of other persons, including the following actions (inaction), are forbidden:
1) establishment, support of monopolistically high or monopolistically low price of a good;
2) withdrawal of a good from circulation, if such withdrawal resulted in increase of the price of goods ;
3) imposition on the counter-partner economically or technologically unreasonable terms of the agreement which are unprofitable for him or do not relate to subject of the agreement;
4) economically or technologically unreasonable reduction or termination of goods production if there is a demand for these goods or orders are placed for its deliveries with the possibility of its profitable production, and also if such reduction or such termination of goods production isn't directly provided for by this Treaty and/or other international agreements of the member States;
5) economically or technologically unreasonable refusal or avoidance of the conclusion of the agreement with certain buyers (customers) with the possibility of production or delivery of the corresponding goods with specificities provided for in this Treaty and/or other international agreements of the member States;
6) economically, technologically or otherwise unreasonable establishment of various prices (tariffs) for the same goods, creation of discriminatory conditions with specificities provided for in this Treaty and/or other international agreements of the member States;
7) creation of restrictionson access to the goods market or exit from the goods market for other business entities (market entities).
2. Unfair competition is not allowed, including:
1) dissemination of the false, inadequate or distorted information which can cause losses to a business entity (market entity) or can cause damage of its business reputation;
2) misleading concerning character, method and place of production, consumer properties, quality and quantity of goods or concerning its producers;
3) incorrect comparison by the business entities (market entities ) of the goods produced or sold by it with the goods produced or sold by other business entities (market participants).
3. Agreements are forbidden between business entities (market entities ) - competitors acting in one goods market which lead or can lead to:
1) establishment or maintenance of the prices (tariffs), discounts, extra charges (surcharges), margins;
2) increase, decrease or support of the prices at the auctions;
3) division of the goods market by the territorial principle, volume of sale or purchase of goods, the range of goods sold or structure of sellers or buyers (customers);
4) reduction or termination of goods production;
5) refusal of the conclusion of agreements with certain sellers or buyers (customers).
4. Vertical agreements are forbidden between business entities (market entities) (except for vertical agreements which are admissible according to the criteria of admissibility established by the Annex. 19 to this Treaty), if:
1) such agreements lead or can lead to establishment of the price of resale of goods, except for the case when the seller establishes a ceiling price of resale of goods for the buyer;
2) such agreements stipulate the obligation of the buyer not to sell goods of the business entity (market entity), who is a competitor of the seller. Such prohibition does not concern agreement on organization by the buyer of sale of goods under the trademark or other means of individualization of the seller or the producer.
5. Other agreements are forbidden between the business entities (market entities) (except for vertical agreements which are admissible according to the criteria of admissibility established by the Annex 19 to this Treaty) if it is established that such agreements lead or can lead to competition restriction.
6.Natural persons, commercial organizations and non-commercial organizations are forbidden to carry out coordination of economic activity of business entities (market entities) if such coordination leads or can lead to the consequences, stated in paragraphs 3 and 4 of this Article, which cannot be admitted as admissible under the criteria of admissibility, established by Annex 19 to this Treaty. The member States are entitled to establish in their legislation prohibition of coordination of economic activity, if such coordination leads or may lead to the consequences stated also in paragraph 5 of this Article, which cannot be admitted as admissible under the criteria of admissibility, established by Annex 19 to this Treaty.
7. Prevention of violation by business entities (market entities ) of the member States, and also by natural persons and non-commercial organizations which do not carry out business activity, of common rules of competition established in this section if such violations affect or can adversely affect competition on transboundary markets in the territory of two and more member States, except for financial markets, is carried out by the Commission in the order provided by the Annex. 19 to this Treaty.
Article 77. State Price Regulation
The order of introduction of the State price regulation, and also challenging the decisions of the member States on its introduction are determined by the Annex 19 to this Treaty.
Section XIX. Natural Monopolies
Article 78. Sectors and Natural Monopoly Entities
1. Member States in the regulation of natural monopolies are guided by rules and regulations provided by Annex 20 to this Treaty.
2. Provisions of this section shall be applied to the relationships involving natural monopoly entities, consumers, executive authorities and local governments of the member States in the sectors of natural monopolies, affecting trade between member States as well as those specified in Appendix No. 1 to Annex 20 of this Treaty.
3. Legal relations in the specific sectors of natural monopolies are defined under this section taking into account the specificities provided in Sections XX and XXI of this Treaty.
4. In the member States the sectors of natural monopolies specified in Appendix No. 2 to Annex 20 of this Treaty are also fall within the scope of natural monopolies. In respect of natural monopolies specified in Appendix No. 1 to Annex 20 of this Treaty requirements of the national legislation of the member States shall be applied.
5. List of the services of natural monopolies attributable to the sectors of natural monopolies shall be established by the national legislation of the member States.
6. Member States shall seek harmonization of the natural monopoly sectors specified in Appendixes No. 1 and 2 to Annex 20 to this Treaty, by means of reducing their number and by possible determination of a transitional period in Sections XX and XXI of the Treaty.
7. Expansion of the sectors of natural monopolies in the member States is carried out: in accordance with the national legislation of the member States, if a member State intends to qualify a sector that is a natural monopoly sector in another member State and is specified in Appendixes No. 1 or No. 2 of Annex 20 to this Treaty as a natural monopoly sector. by the Commission Decision, in case if a member State intends to qualify another natural monopoly sector, which is not specified in Appendixes No. 1 or No. 2 to Annex 20 to this Treaty as a natural monopoly sector, upon an appropriate application made by this Member state to the Commission.
8. This section does not apply to relations regulated by effective international bilateral agreements between the member States. Re-concluded international bilateral agreements between member States cannot contradict this section. 9. Provisions of Section XVIII of this Treaty shall apply to natural monopolies taking into account specificities provided by this section.
Section XX. Energy
Article 79. Interaction of the Member States In the Energy Sector
1. For the purposes of the effective use of the potential of fuel and energy complexes of the member States as well as providing national economies with the main types of energy resources (electricity, gas, oil and petroleum products), member States shall develop a long-term mutually beneficial cooperation in the energy sector, conduct a coordinated energy policy, implement the gradual formation of common markets of energy resources in accordance with international agreements provided for in Articles 81, 83 and 84 of this Treaty, with a view to ensure energy security, based on the following basic principles:
1) ensuring the market pricing of energy resources;
2) ensuring the development of competition in the common market of energy resources;
3) lack of technical, administrative and other barriers to trade in energy resources, appropriate equipment, technology and services related to them;
4) provision of transport infrastructure development of common markets of energy resources;
5) ensuring non-discriminatory conditions for economic entities of member States in the common markets of energy resources;
6) creation of favorable conditions for attracting investments in the energy sector of the member States;
7) harmonization of national norms and rules of the technological and commercial infrastructure of common markets of the energy resources.
2. The relations of economic entities of member States operating in the sphere of electric power, gas, oil and petroleum products not covered by this section shall be implemented in accordance with the legislation of the member States.
3. Provisions of section XVIII of this Treaty with respect to economic entities of member States in the fields of electric power, gas, oil and petroleum products are applied subject to particularities provided by this section and Section XIX of this Treaty.
Article 80. Indicative (estimated) Balances of Gas, Oil and Petroleum Products
1. For the purpose of effective use of the total interstate energy potential and optimization of energy resources supply, the competent authorities of the member States shall develop and coordinate: indicative (estimated) gas balance of the EAEU; indicative (estimated) oil balance of the EAEU; indicative (estimated) petroleum products balances of the EAEU.
2. Development of the balances referred to in paragraph 1 of this Article shall be carried out with the participation of the Commission and in accordance with the methodology of developing indicative (estimated) balances of gas, oil and petroleum products, developed within the period provided in paragraph 1 of Article 104 of this Treaty and agreed by the competent authorities of the member States.
Article 81. Creation of a Common Energy Market of the Eaeu
1. Member States shall carry out phased creation of a common energy market of the EAEU on the basis of parallel operation of electric power systems subject to the transitional provisions specified in paragraphs 2 and 3 of Article 104 of this Treaty.
2. Member States shall develop the concept and program of creation of a common energy market of the EAEU approved by the Supreme Council.
3. Member States conclude an international agreement within the EAEU on the creation of a common energy market based on the provisions of the approved concept and program of formation of a common energy market of the EAEU.
Article 82. Providing the Access to Services of Natural Monopolies Subjects In the Energy Sector
1. Within existing technical capabilities the member States shall ensure free access to services of entities of natural monopolies in the energy sector, provided the priority use of these services for the domestic demand in electric energy (power) of the member States in accordance with common principles and rules according to the Annex 21 to this Treaty.
2. Principles and rules of access to the services of natural monopolies subjects in the electric energy sector, including the basics of pricing and tariff policy set out in the Annex 21 to this Treaty shall be effective to the Republic of Belarus, Republic of Kazakhstan and the Russian Federation. In the case of accession of new members to the EAEU the indicated Annex shall be amended accordingly.