4. Transfers in respect of capital movements covered under paragraph 2 shall be made on the same exchange rate conditions as those relating to current transactions.
5. Without prejudice to paragraphs 6 and 7, after a transitional period of five years as from entry into force of this Agreement, the Parties shall not introduce any new restrictions on the movement of capital and current payments connected therewith between resident of the Community and Russia and shall not make the existing arrangements more restrictive. However, the introduction of restrictions during the transitional period referred to in the first sentence of this paragraph shall not affect the rights and obligations of the Parties under paragraphs 2, 3, 4 and 9 of this Article.
6. After the prohibition in paragraph 5 has come into effect and without prejudice to paragraphs 1 and 2, where, in exceptional circumstances, movements of capital between the Community and Russia cause, or threaten to cause, serious difficulties for the operation of exchange rate policy or monetary policy in the Community or Russia, the Community and Russia, respectively, may take safeguard measures with regard to movements of capital between the Community and Russia for a period not exceeding six months if such measures are strictly necessary.
7. With reference to the provisions of this Article, until a full convertibility of the Russian currency within the meaning of Article VIII of the Articles of Agreement of the International Monetary Fund (IMF) is introduced, Russia may apply exchange restrictions connected with the granting or taking up of short and medium-term financial credits to the extent that such restrictions are imposed on Russia for the granting of such credits and are permitted according to Russia's status under the IMF.
Russia shall apply these restrictions in a non-discriminatory manner. They shall be applied in such a manner as to cause the least possible disruption to this Agreement. Russia shall inform the Cooperation Council promptly of the introduction of such measures and of any changes therein.
8. The Parties shall consult each other with a view to facilitating the movement of capital between the Community and Russia in order to promote the objectives of the present Agreement. The Parties shall particularly endeavour to further liberalize movements of capital related to portfolio investment and commercial credits, and movements of capital related to financial loans and credits granted by Community residents to Russian residents. The Cooperation Council shall make appropriate recommendations within the first five years after entry into force of this Agreement.
9. The Parties shall accord to one another most-favoured-nation treatment in respect of freedom of current payments and capital movements and in respect of methods of payment.
Part VI. COMPETITION; INTELLECTUAL, INDUSTRIAL AND COMMERCIAL PROPERTY PROTECTION; LEGISLATIVE COOPERATION
Article 53. Competition
1. The Parties agree to work to remedy or remove through the application of their competition laws or otherwise, restrictions on competition by enterprises or caused by State intervention in so far as they may affect trade between the Community and Russia.
2. In order to attain the objectives mentioned in paragraph 1:
2. 1. The Parties shall ensure that they have and enforce laws addressing restrictions on competition by enterprises within their jurisdiction.
2. 2. The Parties shall refrain from granting export aids favouring certain undertakings or the production of products other than primary products. The Parties also declare their readiness, as from the third year from the date of entry into force of this Agreement, to establish for other aids which distort or threaten to distort competition in so far as they affect trade between the Community and Russia, strict disciplines, including the outright prohibition of certain aids. These categories of aids and the disciplines applicable to each shall be defined jointly
Within a period of three years after entry into force of this Agreement.
Upon request by one Party, the other Party shall provide information on its aid schemes or in particular individual cases of State aid.
2. 3. During a transitional period expiring five years after the entry into force of the Agreement, Russia may take measures inconsistent with paragraph 2.2, second sentence, provided that these measures are introduced and applied in the circumstances referred to in Annex 9.
2. 4. In the case of State monopolies of a commercial character, the Parties declare their readiness, as from the third year from the date of entry into force of this Agreement, to ensure that there is no discrimination between nationals and companies of the Parties regarding the conditions under which goods are procured or marketed.
In the case of public undertakings or undertakings to which Member States or Russia grant exclusive rights, the Parties declare their readiness, as from the third year from the date of entry into force of this Agreement, to ensure that there is neither enacted nor maintained any measure distorting trade between the Community and Russia to an extent contrary to the Parties' respective interests. This provision shall not obstruct the performance, in law or fact, of the particular tasks assigned to such undertakings.
2. 5. The period defined in paragraphs 2.2 and 2.4 may be extended by agreement of the Parties.
3. Consultations may take place within the Cooperation Committee at the request of the Community or Russia on the restrictions or distortions of competition referred to in paragraphs 1 and 2 and on the enforcement of their competition rules, subject to limitations imposed by laws regarding disclosure of information, confidentiality and business secrecy. Consultations may also comprise questions on the interpretation of paragraphs 1 and 2.
4. The Party with experience in applying competition rules shall give full consideration to providing the other Party, upon request and within available resources, technical assistance for the development and implementation of competition rules.
5. The above provisions in no way affect a Party's rights to apply adequate measures, notably those referred to in Article 18, in order to address distortions of trade.
Article 54. Intellectual, Industrial and Commercial Property Protection
1. Pursuant to the provisions of this Article and Annex 10, the Parties confirm the importance they attach to ensure adequate and effective protection and enforcement of intellectual, industrial and commercial property rights.
2. The Parties confirm the importance they attach to the obligations arising from the following multilateral conventions:
- Paris Convention for the protection of industrial property (Stockholm Act, 1967 and amended in 1979),
- Madrid Agreement concerning the international registration of marks (Stockholm Act, 1967, and amended in 1979),
- Nice Agreement concerning the international classification of goods and services for the purposes of the registration of marks (Geneva, 1977, and amended in 1979),
- Budapest Treaty on the international recognition of the deposit of microorganisms for the purposes of patent procedure (1977, modified in 1980),
- Patent Cooperation Treaty (Washington 1970, amended and modified in 1979 and 1984),
- Protocol relating to the Madrid Agreement concerning the international registration of marks (Madrid, 1989).
3. The implementation of the provisions of this Article and Annex 10 shall be regularly reviewed by the Parties in accordance with Article 90. If problems in the area of intellectual, industrial and commercial property affecting trading conditions were to occur, urgent
Consultations shall be undertaken, at the request of either Party, with a view to reaching mutually satisfactory solutions.
Article 55. Legislative Cooperation
1. The Parties recognize that an important condition for strengthening the economic links between Russia and the Community is the approximation of legislation. Russia shall endeavour to ensure that its legislation will be gradually made compatible with that of the Community.
2. The approximation of laws shall extend to the following areas in particular: company law, banking law, company accounts and taxes, protection of workers at the workplace, financial services, rules on competition, public procurement, protection of health and life of humans, animals and plants, the environment, consumer protection, indirect taxation, customs law, technical rules and standards, nuclear laws and regulations, transport.
Article 56.
1. The Community and Russia shall foster economic cooperation of wide scope in order to contribute to the expansion of their respective economies, to the creation of a supportive international economic environment and to the integration between Russia and a wider area of cooperation in Europe. Such cooperation shall strengthen and develop economic links to the benefit of both Parties.
2. Policies and other measures of the Parties related to this Title shall in particular be designed to bring about economic and social reforms and restructuring in Russia and shall be guided by the requirements of sustainability and harmonious social development; they shall also fully incorporate environmental considerations.
3. The cooperation shall, inter alia, cover:
- Development of their respective industries and transport,
- Exploration of new sources of supply and of new markets,
- Encouragement of technological and scientific progress,
- Encouragement of a stable social and human resources development and of local employment development,
- Promotion of the regional cooperation with the aim of its harmonious and sustainable development.
4. The Parties consider it essential that, alongside with establishing a relationship of partnership and cooperation with each other, they maintain and develop cooperation with other European States and with the other countries of the former USSR with a view to a harmonious development of the region and shall make every effort to encourage this process.
5. As far as applicable economic and other forms of cooperation provided for in this Agreement may be supported by the Community on the basis of the relevant Council Regulations on technical assistance to the countries of the former USSR, taking into account the priorities agreed upon by the Parties. Support may also be provided through such other relevant Community instruments as may be available.
Special attention shall be devoted by the Parties to measures capable of fostering cooperation with the other countries of the former USSR.
6. The provisions of this Title shall not affect the enforcement of the Parties' competition rules and of the specific competition provisions of this Agreement applicable to undertakings.
Article 57. Industrial Cooperation
1. Cooperation shall aim at promoting the following in particular:
- The development of business links between economic operators, including small and medium-size enterprises,
- The improvement of management on enterprise level,
- The process of privatization in the context of economic restructuring, and the strengthening of the private sector,
- Efforts in both public and private sector, to restructure and modernize the industry, during the transition period leading towards a market economy and under conditions ensuring environment protection and sustainable development,
- The conversion of defence industries,
- The development of appropriate market-based commercial rules and practices as well as transfer of know-how.
2. Industrial cooperation initiatives shall take into account priorities determined by the Community and by Russia. The initiatives should seek in particular to establish a suitable framework for undertakings, to improve management know-how and to promote transparency as regards markets and conditions for undertakings.
Article 58. Investment Promotion and Protection
1. Bearing in mind the respective powers and competences of the Community and the Member States, cooperation shall aim to establish a favourable climate for investment, both domestic and foreign, especially through better conditions for investment protection, the transfer of capital and the exchange of information on investment opportunities.
2. The aims of this cooperation shall be in particular:
- The conclusion, where appropriate, between the Member States and Russia of agreements for the promotion and protection of investment,
- The conclusion, where appropriate, between the Member States and Russia of agreements to avoid double taxation,
- To exchange information on investment opportunities in the form of inter alia trade fairs, exhibitions, trade weeks and other events,
- To exchange information on laws, regulations and administrative practices in the field of investment.
Article 59. Public Procurement
The Parties shall cooperate to develop conditions for open and competitive award of public procurement contracts in particular through calls for tenders.
Article 60. Standards and Conformity Assessment; Consumer Protection
1. Within the limits of their competence, and in accordance with their legislation the Parties shall take measures with a view to reducing the differences which exist between the Parties in the fields of metrology, standardization and certification by encouraging the use of internationally agreed instruments in those fields.
The Parties shall closely cooperate in the abovementioned areas with the relevant European and other international organizations.
The Parties shall, in particular, encourage practical interaction of their respective organizations, with the aim of starting to negotiate mutual recognition agreements in the field of conformity assessment activities.
2. The Parties shall enter into close cooperation with a view to achieving compatibility between their systems of consumer protection.
This cooperation shall be aimed in particular at establishment of permanent systems of mutual information on dangerous products, the improvement of information provided to consumers especially on prices, characteristics of products and services offered, the development of
Exchanges between the consumer interest representatives, and increasing the compatibility of consumer protection policies.
Article 61. Mining and Raw Materials
1. The Parties shall cooperate with a view to fostering the development of the sectors of mining and raw materials. Special attention shall be paid to cooperation in the sector of non-ferrous metals.
2. The cooperation shall focus in particular on the following areas:
- Exchange of information on all matters of interest to the Parties concerning the mining and raw materials sectors, including trade matters,
- The adoption and implementation of environmental legislation,
- Training.
3. Such cooperation shall be regularly reviewed by the Parties in a special committee or body to be set up in accordance with the provisions of Article 93.
4. This Article is without prejudice to Articles dealing more specifically with raw materials, in particular Articles 21, 65 and 66.
Article 62. Science and Technology
1. The Parties shall promote bilateral cooperation in civil scientific research and technological development (RTD) on the basis of mutual benefit and, taking into account the availability of resources, adequate access to their respective programmes and subject to appropriate levels of effective protection of intellectual, industrial and commercial property rights (IPR).
2. Science and technology cooperation shall cover:
- The exchange of scientific and technical information,
- Joint RTD activities,
- Training activities and mobility programmes for scientists, researchers and technicians engaged in RTD in both sides.
Where such cooperation takes the form of activities involving education and/or training, it should be carried out in accordance with the provisions of Article 63.
In carrying out such cooperation activities, special attention shall be devoted to the redeployment of scientists, engineers, researchers and technicians who are or have been engaged in research on/and production of weapons of mass destruction.
3. Such cooperation shall be implemented according to specific arrangements to be negotiated and concluded in accordance with the procedures adopted by each Party, and which shall set out, inter alia, appropriate IPR provisions.
Article 63. Education and Training
1. The Parties shall cooperate with the aim of raising the level of general education and professional qualifications, both in the public and private sectors.
2. The cooperation shall focus in particular on the following areas:
- Updating higher education and training systems in Russia,
- The training of public and private sector executives and senior civil servants in priority areas to be determined,
- Cooperation between universities, cooperation between universities and firms,
- Mobility for teachers, graduates, young scientists and researchers, administrators and young people,
- Promoting teaching in the field of European Studies within the appropriate institutions,
- Teaching languages of the Community and of Russia,
- Post-graduate training of conference interpreters,
- Training of journalists,
- Exchange of methods of training and promotion of use of modern training programmes and technical facilities,
- Development of distant education and new training technologies,
- Training of trainers.
3. The participation of one Party in the respective programmes in the field of education and training of the other Party could be considered in accordance with their respective procedures and, where appropriate, institutional frameworks and plans of cooperation could then be established building on participation of Russia in the Community's Tempus programme.
Article 64. Agriculture and the Agro-industrial Sector
Cooperation shall aim at the modernization, restructuring and privatization of agriculture and the agro-industrial sector in Russia in conditions which ensure that the environment is respected. This cooperation shall be through, inter alia, developing private farms and distribution channels, methods of storage, marketing and management, modernizing the rural infrastructure and improvement of agricultural land-use planning, improving productivity, quality and efficiency, and the transfer of technology and know-how. The Parties shall aim at achieving compatibility between their sanitary and phytosanitary standards.
Article 65. Energy
1. Cooperation shall take place within the principles of the market economy and the European Energy Charter, against a background of the progressive integration of the energy markets in Europe.
2. The cooperation shall include among others the followings areas:
- Improvement of the quality and security of energy supply, in an economic and environmentally sound manner,
- Formulation of energy policy,
- Improvement in management and regulation of the energy sector in line with a market economy,
- The introduction of a range of institutional, legal, fiscal and other conditions necessary to encourage increased energy trade and investment,
- Promotion of energy saving and energy efficiency,
- Modernization of energy infrastructure including interconnection of gas supply and electricity networks,
- The environmental impact of energy production, supply and consumption, in order to prevent or minimize the environmental damage resulting from these activities,
- Improvement of energy technologies in supply and end use across the range of energy types,
- Management and technical training in the energy sector.
Article 66. Nuclear Sector
Bearing in mind the respective powers and competences of the Community and its Member States, civil cooperation in the nuclear sector shall take place, inter alia, through the implementation of two agreements on thermonuclear fusion and on nuclear safety to be agreed upon between the Parties.
Article 67. Space
Without prejudice to Article 41, the Parties shall promote long term cooperation as appropriate in the areas of civil space research, development and commercial application. They shall pay particular attention to initiatives making on a mutual beneficial basis full use of the complementarity of their respective activities.
Article 68. Construction
The Parties shall cooperate in the field of construction industry, particularly in the areas covered by Articles 55, 57, 60, 62, 63 and 77 of this Agreement.
This cooperation shall, inter alia, aim at modernizing and restructuring the construction sector in Russia in line with the principles of a market economy and duly taking into account related health, safety and environmental aspects.
Article 69. Environment
1. Bearing in mind the European Energy Charter and the Declaration of the Lucerne Conference of 1993, the Parties shall develop and strengthen their cooperation on environment and human health.
2. Cooperation shall aim at combating the deterioration of the environment and in particular:
- Effective monitoring of pollution levels and assessment of environment; system of information on the state of the environment,
- Combating local, regional and transboundary air and water pollution,
- Ecological restoration,
- Sustainable, efficient and environmentally effective production and use of energy; safety of industrial plants,
- Classification and safe handling of chemicals,
- Water quality,
- Waste reduction, recycling and safe disposal, implementation of the Basle Convention,
- The environmental impact of agriculture, soil erosion, and chemical pollution,
- The protection of forests,
- The conservation of biodiversity, protected areas and sustainable use and management of biological resources,
- Land-use planning, including construction and urban planning,
- Use of economic and fiscal instruments,
- Global climate change,
- Environmental education and awareness,
- Implementation of the Espoo Convention on Environmental Impact Assessment in a transboundary context.
3. Cooperation shall take place particularly through:
- Disaster planning and other emergency situations,
- Exchange of information and experts, including information and experts dealing with the transfer of clean technologies and the safe and environmentally sound use of biotechnologies,
- Joint research activities,
- Improvement of laws towards Community standards,