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DECISION OF ECONOMIC COURT OF COMMONWEALTH OF INDEPENDENT STATES

of June 27, 2000 No. 01-1/1-2000

About restriction of the privileges and immunities provided to MTRK "World" when implementing the business activity which is not connected with professional functions

Economic Court of the Commonwealth of Independent States in structure:

the chairman - the Chairman of Economic Court Kazhenov A. B.,

judges of Economic Court: Vylkov I., Zhoroyev K., Kerimbayeva A. Sh., Makhmudova L. Sh., Miroshnik V. I., Sarsenbayeva A. O., Simonyana G. V., Tolibova X.,

in case of the court clerk Medvedeva T. E.,

with participation of the General adviser of Economic Court Pronina M. G., representatives of Mir Intergovernmental TV & Radio Company (MTRK "World") of the consultant for legal issues MTRK "World" Sukhanov M. E. and legal adviser of National representation of MTRK "World" in the Republic of Belarus Shulyakovskaya N. V.,

having considered case on request of Mir Intergovernmental TV & Radio Company on interpretation in proceeding in open court, established:

The Mir Intergovernmental TV & Radio Company appealed to Economic Court of the Commonwealth of Independent States with request about interpretation of provisions of preamble and articles 2-5, 10 of the Agreement on international legal guarantees of free and independent implementation of activities of Mir Intergovernmental TV & Radio Company of December 24, 1993 regarding whether MTRK "World" specified in the Agreement of guarantee as the international organization taking into account the purposes of its creation are provided. In reasons for request of MTRK "World" specified that it is the interstate organization allocated with complex of the privileges and privileges commonly accepted for such organizations, however, due to the lack in the legislation of the Russian Federation of the regulations regulating activities of the international joint-stock companies, MTRK "World" was registered as regular joint-stock company in Registration chamber under City government of Moscow. This circumstance led to the fact that MTRK "World" and its branches founded in the State Parties are considered as residents of these states that creates essential difficulties in the organization of activities of the Company as whole on accomplishment of its authorized tasks. For example, the currency restrictions set by the national legal system of the states for residents make impossible: free acquisition by the Company and its national branches of currency of other State Parties; movement of financial resources on the consolidated account of the Company or in branches; payment from the consolidated account of the acquired import equipment for project implementation of the multipurpose telebroadcasting satellite World system for the State Parties of the Commonwealth of Independent States.

Having heard the judge-speaker Kerimbayeva A. Sh., representative of MTRK "World" Sukhanov M. E., having discussed the conclusions of the leading researcher of Institute of the state and the right of the Russian Academy of Sciences, the doctor of jurisprudence, professor Velyaminov G. M., the senior consultant Sektor of private international law of the Supreme Arbitration Court of the Russian Federation Sharamova G. I., the General adviser of Economic Court, the doctor of jurisprudence, professor Pronina M. G., having studied the materials which are available in case, the Economic Court came to the following conclusions.

The agreement on international legal guarantees of free and independent implementation of activities of Mir Intergovernmental TV & Radio Company of December 24, 1993 is signed by the Azerbaijan Republic, the Republic of Armenia, the Republic of Belarus, Georgia, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, the Republic of Tajikistan, the Republic of Uzbekistan. The Republic of Moldova joined the Agreement on September 20, 1996. The agreement became effective concerning all states which signed it except for of Georgia in the territory of which it is applied temporarily. The specified states are also founders of MTRK "World".

According to the Agreement of December 24, 1993 the Company, its property and assets use immunity from administrative and judicial intervention and executive actions (Article 3); archives and documents of the Company, and also its room are inviolable (Article 4); the corporate property is not subject to search, requisition, confiscation and withdrawal administratively (Article 5); The Company, its property are exempted from the direct taxes and charges of any nature, from customs fees and restrictions when importing and exporting objects, held for use for the purpose of, MTRK "World" provided by the Charter (Article 6); privileges and immunities are provided also to representatives of the states (governments) in the Company to accomplishment of official functions by them, and also to the officials who are not citizens of the state of stay of the Company (Articles 7, 9).

The analysis of the Agreement and, in particular, the specified Articles, shows that the State Parties provided to Mir Intergovernmental TV & Radio Company of the privilege and the immunities having international legal character which mode is settled at the universal level by the Vienna convention on the diplomatic intercourses of April 18, 1961.

In this case privileges and immunities are provided by the states on contractual basis and as appears from the Agreement preamble, have functional nature as are designed to create international legal guarantees of free and independent implementation of professional activity of MTRK "World" in the territories of the State Parties as the interstate organization. For explanation of sense of the concept "interstate organization" used in the Agreement the Economic Court addressed the analysis of all set of constituent documents MTRK "World", considering that only in their general context the status of the Company, feature of its organization, the main authorized objectives and the carried-out functions can be determined.

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