Article 321. Establishment of the Arbitration Panel
1. An arbitration panel shall be composed of three arbitrators.
2. Within 14 days of the delivery, to the Party complained against, of the written request for the establishment of an arbitration panel, the Parties shall consult in order to reach an agreement on the composition of the arbitration panel.
3. In the event the Parties are unable to agree on the composition of the arbitration panel within the time frame laid down in paragraph 2 of this Article, each Party shall, within five days of the expiry of the timeframe established in that paragraph, appoint an arbitrator from the sub-list of that Party contained in the list established pursuant to Article 339. If either Party fails to appoint an arbitrator, the arbitrator shall, upon the request of the other Party, be selected by lot by the chairperson of the Partnership Committee, or the chairperson's delegate, from the sub-list of that Party contained in the list established pursuant to Article 339.
4. Unless the Parties reach an agreement concerning the chairperson of the arbitration panel within the timeframe established in paragraph 2 of this Article, the chairperson of the Partnership Committee or the chairperson's delegate shall, upon the request of either Party, select by lot the chairperson of the arbitration panel from the sub-list of chairpersons contained in the list established pursuant to Article 339.
5. The chairperson of the Partnership Committee, or the chairperson's delegate, shall select the arbitrators within five days of the request referred to in paragraph 3 or 4.
6. The date of establishment of the arbitration panel shall be the date on which all three selected arbitrators have notified their acceptance of appointment according to the Rules of Procedure.
7. If any of the lists provided for in Article 339 are not established or do not contain sufficient names at the time a request referred to in paragraph 3 or 4 of this Article is made, the arbitrators shall be drawn by lot from the individuals who have been formally proposed by one or both of the Parties.
Article 322. Terms of Reference
1. Unless the Parties agree otherwise within five days from the date of selection of the arbitrators, the terms of reference of the arbitration panel shall be:
"To examine, in the light of the relevant provisions of Title V of this Agreement invoked by the parties to the dispute, the matter referred to in the request for establishment of the arbitration panel, to rule on the compatibility of the measure in question with those relevant provisions and to deliver a report in accordance with Articles 324, 325, 326 and 338 of this Agreement.".
2. The Parties shall notify the agreed terms of reference to the arbitration panel within three days of their agreement.
Article 323. Arbitration Panel Preliminary Ruling on Urgency
If a Party so requests, the arbitration panel shall decide, within 10 days of its establishment, whether it deems the case to be urgent. Such a request to the arbitration panel shall be notified simultaneously to the other Party.
Article 324. Reports of the Arbitration Panel
1. The arbitration panel shall deliver an interim report to the Parties setting out the findings of fact, the applicability of relevant provisions and the basic rationale behind any findings and recommendations that it makes.
2. Each Party may deliver a written request to the arbitration panel to review precise aspects of the interim report within 14 days of its receipt. Such a request shall be notified simultaneously to the other Party.
3. After considering any written comments by the Parties on the interim report, the arbitration panel may modify its report and make any further examination it considers appropriate.
4. The final report of the arbitration panel shall set out the findings of fact, the applicability of the relevant provisions of this Title and the basic rationale behind any findings and conclusions that it makes. The final report shall include a sufficient discussion of the arguments made at the interim review stage, and shall contain clear responses to the questions and observations of the Parties.
Article 325. Interim Report of the Arbitration Panel
1. The arbitration panel shall deliver an interim report to the Parties no later than 90 days after the date of establishment of the arbitration panel. When the arbitration panel considers that this deadline cannot be met, the chairperson of the arbitration panel shall notify the Parties and the Partnership Committee in writing, stating the reasons for the delay and the date on which the arbitration panel plans to deliver its interim report. Under no circumstances shall the interim report be delivered later than 120 days after the date of the establishment of the arbitration panel.
2. Incases of urgency referred to in Article 323, including those involving perishable goods, seasonal goods or services or energy-related matters, the arbitration panel shall make every effort to deliver its interim report within 45 days and, in any case, no later than 60 days after the date of establishment of the arbitration panel.
3. Each Party may deliver a written request to the arbitration panel to review precise aspects of the interim report pursuant to Article 324 paragraph 2 within 14 days of receipt of the interim report. Such a request shall be notified simultaneously to the other Party. A Party may comment on the other Party's request within seven days of the delivery of the written request to the arbitration panel.
Article 326. Final Report of the Arbitration Panel
1. The arbitration panel shall deliver its final report to the Parties and to the Partnership Committee within 120 days of the date of establishment of the arbitration panel. When the arbitration panel considers that this deadline cannot be met, the chairperson of the arbitration panel shall notify the Parties and the Partnership Committee in writing, stating the reasons for the delay and the date on which the arbitration panel plans to deliver its final report. Under no circumstances shall the final report be delivered later than 150 days after the date of the establishment of the arbitration panel.
2. In cases of urgency referred to in Article 323, including those involving perishable goods, et seasonal goods or services or energy-related matters, the arbitration panel shall make every effort to deliver its final report within 60 days of the date of establishment of the arbitration panel. Under no circumstances shall the final report be delivered later than 75 days after the date of establishment of the arbitration panel.
Subsection II. Compliance
Article 327. Compliance with the Final Report of the Arbitration Panel
The Party complained against shall take the necessary measures to comply promptly and in good faith with the final report of the arbitration panel in order to bring itself into compliance with the provisions of this Title.
Article 328. Reasonable Period of Time for Compliance
1. If immediate compliance is not possible, the Parties shall endeavour to agree on the period of time necessary for compliance with the final report. In such a case, the Party complained against shall, no later than 30 days after receipt of the final report, deliver a notification to the complaining Party and the Partnership Committee of the time it will require for compliance ("the reasonable period of time").
2. Ifthere is disagreement between the Parties as to the duration of the reasonable period of time, the complaining Party may, within 20 days of receipt of the notification referred to in paragraph 1, deliver a request in writing that the original arbitration panel determine the length of the reasonable period of time. Such a request shall be delivered simultaneously to the other Party and to the Partnership Committee. The arbitration panel shall deliver its determination of the reasonable period of time to the Parties and to the Partnership Committee within 20 days of the date of receipt of the request.
3. The Party complained against shall notify the complaining Party in writing of its progress in complying with the final report. Such notification shall be provided in writing and delivered at least one month before the expiry of the reasonable period of time.
4. The reasonable period of time may be extended by mutual agreement between the Parties.
Article 329. Review of Any Measure Taken to Comply with the Final Report of the Arbitration Panel
1. The Party complained against shall notify the complaining Party and the PartnershipCommittee of any measure that it has taken to comply with the final report. Such notification shall be delivered before the end of the reasonable period of time.
2. Inthe event that there is disagreement between the Parties concerning the existence of any measure notified under paragraph 1, or the consistency of such a measure with the provisions of this Title, the complaining Party may deliver a written request to the original arbitration panel to rule on the matter. Such a request shall be notified simultaneously to the Party complained against. Such a request shall identify the specific measure at issue and explain how such measure is inconsistent with the covered provisions, in a manner that clearly presents the legal basis for the complaint. The arbitration panel shall deliver its report to the Parties and to the Partnership Committee within 45 days of the date of receipt of the request.
Article 330. Temporary Remedies In Case of Non-compliance
1. If the Party complained against fails to notify any measure taken to comply with the final report of the arbitration panel before the expiry of the reasonable period of time, or if the arbitration panel rules that no such measure exists or that the measure notified under Article 329 paragraph 1 is inconsistent with that Party's obligations under the provisions of this Title, the Party complained against shall, if so requested by the complaining Party and after consultations with that Party, present an offer for temporary compensation.
2. If the complaining Party decides not to request an offer for temporary compensation under paragraph 1 or, where such a request is made, no agreement on compensation is reached within 30 days of the end of the reasonable period of time or the delivery of the arbitration panel report under Article 329 paragraph 2, the complaining Party shall be entitled, upon notification to the other Party and to the Partnership Committee, to suspend obligations arising from the provisions of this Title. The notification shall specify the level of suspension of obligations which shall not exceed the level equivalent to the nullification or impairment caused by the violation. The complaining Party may implement the suspension as from 10 days after the receipt of the notification by the Party complained against, unless the Party complained against has requested arbitration under paragraph.
3. If the Party complained against considers that the intended suspension of obligations exceeds the level equivalent to the nullification or impairment caused by the violation, it may deliver a written request to the original arbitration panel to rule on the matter. Such a request shall be notified to the complaining Party and to the Partnership Committee before the expiry of the 10-day period referred to in paragraph 2. The original arbitration panel shall deliver its report on the level of the suspension of obligations to the Parties and to the Partnership Committee within 30 days of the date of delivery of the request. Obligations shall not be suspended until the original arbitration panel has delivered its report. The suspension shall be consistent with the arbitration panel's report on the level of the suspension.
4. The suspension of obligations and the compensation referred to in this Article shall be temporary and shall not be applied after:
(a) the Parties have reached a mutually agreed solution pursuant to Article 334;
(b) the Parties have agreed that the measure notified under Article 329 paragraph 1 brings the Party complained against into conformity with the provisions of this Title; or
(c) any measure that the arbitration panel under Article 329 paragraph 2 has found to be inconsistent with the provisions of this Title has been withdrawn or amended so as to bring it into conformity with those provisions.
Article 331. Review of Any Measure Taken to Comply after the Adoption of Temporary Remedies for Non-compliance
1. The Party complained against shall notify the complaining Party and the Partnership Committee of the measure it has taken to comply with the report of the arbitration panel following the suspension of concessions or following the application of temporary compensation, as the case may be. With the exception of cases under paragraph 2, the complaining Party shall terminate the suspension of concessions within 30 days of receipt of the notification. In cases where compensation has been applied, and with the exception of cases under paragraph 2, the Party complained against may terminate the application of such compensation within 30 days of the date of its notification that it has complied with the report of the arbitration panel.
2. If the Parties do not reach an agreement on whether the notified measure brings the Party complained against into conformity with the covered provisions within 30 days of the date of receipt of the notification, the complaining Party shall deliver a written request to the original arbitration panel to rule on the matter. Such a request shall be delivered simultaneously to the other Party and to the Partnership Committee. The arbitration panel report shall be delivered to the Parties and to the Partnership Committee within 45 days of the date of the submission of the request. If the arbitration panel rules that the measure taken to comply is in conformity with the provisions of this Title, the suspension of obligations or compensation, as the case may be, shall be terminated. If the arbitration panel rules that the measure notified by the Party complained against pursuant to paragraph 1 is not in conformity with the provisions of this Title, the level of suspension of obligations or of compensation shall be, where relevant, adapted in light of the arbitration panel's report.
Subsection III. Common Provisions
Article 332. Replacement of Arbitrators
If in arbitration proceedings under this Chapter the original arbitration panel, or some of its members, are unable to participate, withdraw or need to be replaced because they do not comply with the requirements of the Code of Conduct, the procedure set out in Article 321 shall apply. The time limit for the delivery of the report may be extended for the time necessary for the appointment of a new arbitrator, up to a maximum of 20 days.
Article 333. Suspension and Termination of Arbitration and Compliance Procedures
The arbitration panel shall, at the request of both Parties, suspend its work at any time for a period agreed by the Parties and not exceeding 12 consecutive months. The arbitration panel shall resume its work before the end of that period at the written request of both Parties, or at the end of this period at the written request of either Party. The requesting Party shall notify the chairperson of the Partnership Committee and the other Party accordingly. If a Party does not request the resumption of the arbitration panel's work at the expiry of the agreed suspension period, the procedure shall be terminated. In the event of a suspension of the work of the arbitration panel, the relevant time periods under this Chapter shall be extended by the same period of time for which the work of the arbitration panel was suspended.
Article 334. Mutually Agreed Solution
1. The Parties may reach a mutually agreed solution to a dispute under this Chapter at any time.
2. If a mutually agreed solution is reached during the panel procedures or a mediation procedure, the Parties shall jointly notify the Partnership Committee and the chairperson of the arbitration panel or the mediator, where applicable, of any such solution. Upon such notification, the arbitration panel procedures or the mediation procedures shall be terminated.
3. Each Party shall take measures necessary to implement the mutually agreed solution within the agreed time period. No later than by the expiry of the agreed time period, the implementing Party shall inform the other Party, in writing, of any measure that it has taken to implement the mutually agreed solution.
Article 335. Rules of Procedure and Code of Conduct
1. Dispute-settlement procedures under this Chapter shall be governed by this Chapter, the Rules of Procedure and by the Code of Conduct.
2. The Partnership Committee shall adopt by decision the Rules of Procedure and the Code of Conduct at its first meeting and may decide amendments thereto.
3. Any hearing of the arbitration panel shall be open to the public unless otherwise provided for in the Rules of Procedure.
Article 336. Information and Technical Advice
1. Upon the request of a Party, notified simultaneously to the arbitration panel and to the other Party, or on its own initiative, the arbitration panel may request any information it deems appropriate for the performance of its functions, including from the Parties involved in the dispute. The Parties shall respond promptly and fully to any request by the arbitration panel for such information.
2. Upon the request of a Party, notified simultaneously to the arbitration panel and to the other Party, or on its own initiative, the arbitration panel may seek any information it deems appropriate for the performance of its functions. The arbitration panel shall have the right to seek the opinion of experts, as it deems appropriate. The arbitration panel shall consult the Parties before choosing such experts.
3. Natural or legal persons established in the territory of a Party may submit amicus curiae briefs to the arbitration panel in accordance with the Rules of Procedure.
4. Any information obtained under this Article shall be disclosed to each Party and submitted for their comments.
Article 337. Rules of Interpretation
The arbitration panel shall interpret the provisions of this Title in accordance with customary rules of interpretation of public international law, including those codified in the Vienna Convention on the Law of Treaties of 1969. The arbitration panel shall also take into account relevant interpretations in reports of WTO panels and of the Appellate Body adopted by the WTO Dispute Settlement Body. The reports of the arbitration panel cannot add to or diminish the rights and obligations of the Parties under this Agreement.
Article 338. Decisions and Reports of the Arbitration Panel
1. The arbitration panel shall make every effort to take all decisions by consensus. Nevertheless, where a decision cannot be arrived at by consensus, the matter at issue shall be decided by majority vote. In no case shall dissenting opinions of arbitrators be disclosed.
2. The report of the arbitration panel shall set out the findings of fact, the applicability of the relevant provisions, and the basic rationale behind any findings and conclusions that it makes.
3. The decisions and reports of the arbitration panel shall be unconditionally accepted by the Parties and shall not create any rights or obligations for natural or legal persons.
4. The Partnership Committee shall make the report of the arbitration panel publicly available, subject to the protection of confidential information as provided for in the Rules of Procedure.
Section D. General Provisions
Article 339. Lists of Arbitrators
1. The Partnership Committee shall, on the basis of proposals made by the Parties, and no later than six months after the entry into force of this Agreement, establish a list of at least 15 individuals who are willing and able to serve as arbitrators. The list shall be composed of three sub-lists: one sub-list for each Party and one sub-list of individuals who are not nationals of either Party and who shall serve as chairperson of the arbitration panel. Each sub-list shall include at least five individuals. The Partnership Committee shall ensure that the list is always maintained at that level.
2. Arbitrators shall have demonstrated expertise in law, international trade, and other matters concerning the provisions of this Title. They shall be independent, serve in their individual capacities and not take instructions from any organisation or government, or be affiliated with the government of any of the Parties, and shall comply with the Code of Conduct. The chairperson shall also have experience in dispute-settlement procedures.
3. The Partnership Committee may establish additional lists of 15 individuals with knowledge and experience in specific sectors covered by the provisions of this Title. Subject to the agreement of the Parties, such additional lists shall be used to compose the arbitration panel in accordance with the procedure set out in Article 321.
Article 340. Choice of Forum
1. Where a dispute arises regarding a particular measure in alleged breach of an obligation under this Agreement and a substantially equivalent obligation under another international agreement to which both Parties are party, including the WTO Agreement, the Party seeking redress shall select the forum in which to settle the dispute.
2. Once a Party has selected the forum and initiated dispute settlement procedures under this Chapter or under another international agreement, the Party shall not initiate dispute-settlement procedures under the other agreement with respect to the particular measure referred to in paragraph 1, unless the forum selected first fails to make findings for procedural or jurisdictional reasons.
3. For the purposes of this Article:
(a) dispute-settlement procedures under this Chapter are deemed to be initiated by a Party's request for the establishment of a panel under Article 320;
(b) dispute-settlement procedures under the WTO Agreement are deemed to be initiated by a Party's request for the establishment of a panel under Article 6 of the Understanding on Rules and Procedures Governing the Settlement of Disputes of the WTO;
(c) dispute-settlement procedures under any other agreement are deemed to be initiated in accordance with the relevant provisions of that agreement.
4. Without prejudice to paragraph 2, nothing in this Agreement shall preclude a Party from implementing the suspension of obligations authorised by the Dispute Settlement Body of the WTO. The WTO Agreement shall not be invoked to preclude a Party from suspending obligations under this Chapter.
Article 341. Time Limits
1. All time limits laid down in this Chapter, including the limits for the arbitration panels to deliver their reports, shall be counted in calendar days, the first day being the day following the act or fact to which they refer, unless otherwise specified. 2. Any time limit referred to in this Chapter may be modified by mutual agreement between the Parties to the dispute. The arbitration panel may at any time propose to the Parties to modify any time limit referred to in this Chapter, stating the reasons for that proposal.
Article 342. Referrals to the Court of Justice of the European Union
1. The procedure provided for in paragraph 2 applies to disputes raising a question on the interpretation of the approximation provisions in Articles 169, 180, 189 and 192.
2. Where a dispute referred to in paragraph 1 raises a question of interpretation of a provision of Union law, the arbitration panel shall request the Court of Justice of the European Union to give a ruling on the question provided that question is necessary for the decision of the arbitration panel. In such cases, the deadlines applying to the rulings of the arbitration panel shall be suspended until the Court of Justice of the European Union has given its ruling. The ruling of the Court of Justice of the European Union shall be binding on the arbitration panel.
Title VII. Financial Assistance, and Anti-fraud and Control Provisions
Chapter 1. Financial Assistance
Article 343.
The Republic of Armenia shall benefit from financial assistance through the relevant funding mechanisms and instruments of the European Union. The Republic of Armenia may also benefit from loans from the European Investment Bank, the European Bank for Reconstruction and Development and other international financial institutions. The financial assistance shall contribute to achieving the objectives of this Agreement and shall be provided in accordance this Chapter.
Article 344.
1. The main principles of financial assistance shall be in accordance with the relevant regulations concerning financial instruments of the European Union.
2. The priority areas of the financial assistance of the European Union agreed by the Parties shall be laid down in annual action programmes based, whenever applicable, on multiannual frameworks which reflect agreed policy priorities. The amounts of assistance established in those programmes shall take into account the Republic of Armenia's needs, sector capacities and progress with reforms, in particular in areas covered by this Agreement.
3. In order to permit optimum use of the resources available, the Parties shall endeavour to ensure that assistance of the European Union is implemented in close cooperation and coordination with other donor countries, donor organisations and international financial institutions, and in line with international principles of aid effectiveness.
4. At the request of the Republic of Armenia and subject to the applicable conditions, the European Union may provide macro-financial assistance to the Republic of Armenia.
Article 345.
The fundamental legal, administrative and technical basis of financial assistance shall be established within the framework of relevant agreements between the Parties.
Article 346.
The Partnership Council shall be informed of the progress and implementation of financial assistance and its impact upon pursuing the objectives of this Agreement. To that end, the relevant bodies of the Parties shall provide appropriate monitoring and evaluation information on a mutual and permanent basis.
Article 347.
The Parties shall implement assistance in accordance with the principles of sound financial management and cooperate in the protection of the financial interests of the European Union and of the Republic of Armenia in accordance with Chapter 2 of this Title.
Chapter 2. Anti-fraud and Control Provisions
Article 348. Definitions
For the purposes of this Chapter, the definitions set out in Protocol to this Agreement shall apply.
Article 349. Scope
This Chapter shall be applicable to any further agreement or financing instrument to be concluded between the Parties, and any other financing instrument of the European Union to which the authorities of the Republic of Armenia or other entities or persons under the jurisdiction of the Republic of Armenia may be associated, without prejudice to any other additional clauses covering audits, on-the-spot checks, inspections, controls and anti-fraud measures, including those conducted by the European Court of Auditors and the European Anti-Fraud Office (OLAF).
Article 350. Measures to Prevent and Fight Fraud, Corruption and Any other Illegal Activities
The Parties shall take effective measures to prevent and fight fraud, corruption and any other illegalactivities in connection with the implementation of EU funds, including by means of mutual administrative assistance and mutual legal assistance in the fields covered by this Agreement.
Article 351. Exchange of Information and Further Cooperation at Operational Level
1. For the purposes of proper implementation of this Chapter, the competent authorities of the European Union and of the Republic of Armenia shall regularly exchange information and, at the request of one of the Parties, shall conduct consultations.
2. The European Anti-Fraud Office may agree with its counterparts of the Republic of Armenia on further cooperation in the field of anti-fraud, including operational arrangements with the authorities of the Republic of Armenia.
3. For the transfer and processing of personal data, Article 13 applies.
Article 352. Cooperation to Protect the Euro and the Dram Against Counterfeiting
The competent authorities of the European Union and of the Republic of Armenia shall cooperate with a view to the effective protection of the euro and the dram against counterfeiting. Suchcooperation shall include assistance necessary to prevent and combat counterfeiting of the euro and the dram, including the exchange of information.
Article 353. Prevention of Fraud, Corruption and Irregularities
1. Where entrusted with the implementation of EU funds, the authorities of the Republic of Armenia shall check regularly that the operations financed with EU funds have been properly implemented. They shall take any appropriate measure to prevent and remedy irregularities and fraud.
2. The authorities of the Republic of Armenia shall take any appropriate measure to prevent and remedy any active or passive corruption practices and exclude conflict of interest at any stage of the procedures related to the implementation of EU funds.
3. The authorities of the Republic of Armenia shall inform the European Commission of any prevention measure taken. 4. To that end, the competent authorities of the Republic of Armenia shall provide the European Commission with any information related to the implementation of EU funds and shall inform it without delay of any substantial change in their procedures or systems.
Article 354. Investigation and Prosecution
The authorities of the Republic of Armenia shall ensure the investigation and prosecution of suspected and actual cases of fraud, corruption or any other irregularity, including conflict of interest, following national or EU controls. Where appropriate, the European Anti-Fraud Office may assist the competent authorities of the Republic of Armenia in that task.
Article 355. Communication of Fraud, Corruption and Irregularities
1. The authorities of the Republic of Armenia shall transmit to the European Commission without delay any information which has come to their notice on suspected or actual cases of fraud, corruption or any other irregularity, including conflict of interest, in connection with the implementation of EU funds. Where fraud or corruption is suspected, the European Anti-Fraud Office shall also be informed.
2. The authorities of the Republic of Armenia shall also report on all measures taken in connection with facts communicated under this Article. If there are no suspected or actual cases of fraud, corruption or any other irregularity to report, the authorities of the Republic of Armenia shall inform the European Commission at the annual meeting of the relevant subcommittee.
Article 356. Audits
1. The European Commission and the European Court of Auditors are entitled to examine whether all expenditure related to the implementation of EU funds has been incurred in a lawful and regular manner and whether the financial management has been sound.
2. Audits shall be carried out on the basis of both commitments undertaken and payments made. They shall be based on records and, if necessary, performed on-the-spot on the premises of any entity which manages or takes part in the implementation of EU funds, including all beneficiaries, contractors and subcontractors who have received EU funds directly or indirectly. The audits may be carried out before the closure of the accounts for the financial year in question and for a period of five years from the date of payment of the balance.
3. European Commission inspectors or other persons mandated by the European Commission or the European Court of Auditors may conduct documentary or on-the-spot checks and audits on the premises of any entity which manages or takes part in the implementation of EU funds and of their subcontractors in the Republic of Armenia.
4. The European Commission or other persons mandated by the European Commission or the European Court of Auditors shall have appropriate access to sites, works and documents and to all the information required in order to carry out such audits, including in electronic form. That right of access shall be communicated to all public institutions of the Republic of Armenia and shall be stated explicitly in the contracts concluded to implement the instruments referred to in this Agreement.
5. In the performance of their tasks, the European Court of Auditors and the audit bodies of the Republic of Armenia shall cooperate in a spirit of trust while maintaining their independence.
Article 357. On-the-spot Checks
1. Within the framework of this Agreement, the European Anti-Fraud Office shall entitled to carry out on-the-spot checks and inspections in order to protect the financial interests of the European Union.
2. On-the-spot checks and inspections shall be prepared and conducted by the European Anti- Fraud Office in close cooperation with the competent authorities of the Republic of Armenia.
3. The authorities of the Republic of Armenia shall be notified in good time of the object, purpose and legal basis of the checks and inspections, so that they can provide all the requisite help. To that end, officials of the competent authorities of the Republic of Armenia shall be entitled to participate in the on-the-spot checks and inspections.
4. If the authorities of the Republic of Armenia concerned express their interest, the on-the- spot checks and inspections may be carried out jointly by the European Anti-Fraud Office and them.
5. Where an economic operator resists an on-the-spot check or inspection, the authorities of the Republic of Armenia shall give the European Anti-Fraud Office such assistance in accordance with the law of the Republic of Armenia, as it needs to allow it to discharge its duty in carrying out an on-the-spot check or inspection.
Article 358. Administrative Measures and Sanctions
Administrative measures and penalties may be imposed on economic operators by the European Commission in accordance with Council Regulation (EC, Euratom) No 2988/95, Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council? and Commission Delegated Regulation (EU) No 1268/2012°. Additional measures and sanctions complementing those mentioned in the first sentence may be imposed by the authorities of the Republic of Armenia in accordance with the applicable national law.
Council Regulation (EC, Euratom) No 2988/95 of 18 December 1995 on the protection of the European Communities' financial interests( OJ EU L 312, 23.12.1995, p. 1). Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council of 25 October 2012 on the financial rules applicable to the general budget of the Union (OJ EU L 298, 26.10.2012, p. 1). Commission Delegated Regulation (EU) No 1268/2012 of 29 October 2012 on the rules of application of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the Council on the financial rules applicable to the general budget of the Union (OJ EU L 362, 31.12.2012, p. 1).
Article 359. Recovery
1. Where the authorities of the Republic of Armenia are entrusted with the implementation of EU funds, the European Commission is entitled to recover EU funds unduly paid, in particular through financial corrections. The authorities of the Republic of Armenia shall take any appropriate measure to recover EU funds unduly paid. The European Commission shall take into account the measures taken by the authorities of the Republic of Armenia to prevent the loss of the EU funds concerned.
2. In the cases referred to in paragraph 1, the European Commission shall consult with the Republic of Armenia on the matter before taking any decision on recovery. Disputes on recovery shall be discussed in the Partnership Council.
3. Provisions this Title, which impose a pecuniary obligation on persons other than States, shall be enforceable in the Republic of Armenia in accordance with the following principles:
(a) Enforcement shall be governed by the rules of civil procedure in force in the Republic of Armenia. The order for enforcement shall be issued, without any formality other than the verification of the authenticity of the enforcement decision, by a national authority designated by the government of the Republic of Armenia for that purpose. The government of the Republic of Armenia shall inform the European Commission and the Court of Justice of the European Union of the identity of that national authority.
(b) When the formalities referred to in point (a) have been completed on request of the European Commission, the European Commission may proceed with enforcement in accordance with the law of the Republic of Armenia, by bringing the matter directly before the competent authority.
(c) The legality of the enforcement decision shall be subject to control by the Court of Justice of the European Union. Enforcement may be suspended only by a decision of the Court of Justice of the European Union. The European Commission shall inform the authorities of the Republic of Armenia of any decision by the Court of Justice of the European Union to suspend the enforcement. The courts of the Republic of Armenia shall have jurisdiction over complaints that enforcement is being carried out in an irregular manner.