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DECISION OF ECONOMIC COURT OF COMMONWEALTH OF INDEPENDENT STATES

of March 30, 1995 No. 04/95

About inadequate accomplishment by the Government of the Republic of Kazakhstan Agreements of August 4, 1993 and repayment of debt by it to the Republic of Belarus

Board of Economic Court of the Commonwealth of Independent States in structure:

the chairman - the judge Bereziya A. E., Bekenov R. A. judges., Kerimbayeva A. Sh., Miroshnik V. I., Simonyana G. V.,

in case of the secretary of Mikheyeva S.A.,

with participation of representatives of the Government of the Republic of Belarus of Petrashkevich M. I., Shakolo I. P., Sergeyeva O. G., representative of the Government of the Republic of Kazakhstan Naypak M. P.,

having considered in open session case on the statement of the Government of the Republic of Belarus on inadequate accomplishment by the Government of the Republic of Kazakhstan of the Agreement of August 4, 1993 and repayment of debt by it to the Republic of Belarus,

having heard the judge-speaker Kerimbayeva A. Sh., agents of the parties, having estimated the conclusion of the General adviser of Economic Court Romanovich A. N. and case papers in their set,

established:

The government of the Republic of Belarus appealed to Economic Court of the Commonwealth with the statement that it, according to the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Belarus of August 4, 1993, and also the Agreement of intent between the Republic of Belarus and administration of the Kustanay region of the Republic of Kazakhstan of July 21, 1993 about supply of grain of harvest of 1993 and assistance in its cleaning, sent in 1993 to the Kustanay region of 1737 cargo vehicles with driver's structure and 1865 machine operators for work on combines. However, in connection with failure to carry out in full by the Republic of Kazakhstan of the assumed liabilities, the Republic of Belarus received less 814 tons of grain of wages in kind, the debt for work of machine operators and service of motor transport constituted 3, 1 billion rubles of the Russian Federation. The Cabinet of Ministers of the Republic of Belarus asks Economic Court to render assistance in accomplishment by the Government of the Republic of Kazakhstan of the obligations under the specified agreements and debt repayment to the Republic of Belarus.

In court session the representative of the Government of the Republic of Belarus supported the declared requirements. The representative of the Government of the Republic of Kazakhstan, having admitted the fact of inadequate accomplishment of obligations, reported that measures for repayment of the available debt to the Republic of Belarus are taken.

The court considers requirements of the Government of the Republic of Belarus about inadequate accomplishment by the Government of the Republic of Kazakhstan of obligations for compensation of the machine operators and services of motor transport following from Item 2 of the Agreement of August 4, 1993, reasonable.

The agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Belarus of August 4, 1993 is signed for the purpose of expansion of commercial ties on the basis of mutual interest of contracting parties and determines their general organizational obligations by supply of grain to the Republic of Belarus and assistance to the Republic of Kazakhstan in grain cleaning.

According to Item 2 of this Agreement the Government of the Republic of Belarus undertook to send to the Kustanay region of the Republic of Kazakhstan cargo vehicles with driver's structure and machine operators for work on combines. Payment terms, terms, the quantity of the directed equipment and machine operators were provided to be drawn up the separate contract with administration of the Kustanay region.

However on July 21, 1993 the Agreement of intent between the Republic of Belarus and administration of the Kustanay region about supply of grain of harvest of 1993 and assistance in its cleaning which, according to Court, both on the list of participants, and on nature of the mediated relations is the private-law agreement for this purpose was already signed. This Agreement not only supplemented the intergovernmental agreement of August 4, 1993 regarding specific obligations of administration of the Kustanay region to the Republic of Belarus on compensation of machine operators and services of motor transport, but its realization was in direct dependence on the specified Agreement. So, according to Item 7 of the Agreement of July 21, 1993, it became effective only after agreement signature of the August 4, 1993 which provided allocation by the Government of the Republic of Kazakhstan of quota for delivery of one million tons of grain to the Republic of Belarus and rendering by it the help in cleaning of grain of directly Kustanay region.

Taking into account stated the Court came to conclusion that transfer by the Government of the Republic of Kazakhstan of administration of the Kustanay region of the powers on settlement of payment terms of work of machine operators and services of motor transport of the Republic of Belarus does not relieve from it responsibility for inadequate accomplishment of the obligations following from Item 2 of the Agreement of August 4, 1993. This conclusion of Court is confirmed by the conclusion of the General adviser of Economic Court and is not disputed in judicial session by agents of the parties.

The court draws also the attention of the Government of the Republic of Kazakhstan to difficult economic situation of the Kustanay region which to the conclusion of the specified Agreement had considerable debt to the Republic of Belarus for help in cleaning of grain of harvest of 1992 given her.

The court considers that the Government of the Republic of Kazakhstan, proceeding from the principle of fair accomplishment of obligations assumed by the states and responsibility for them, stipulated in Article 3 Charters of the Commonwealth of Independent States and article 1 of the Agreement on creation of Economic Union, shall take measures for debt repayment to the Republic of Belarus on compensation of machine operators and for use of motor transport.

The court assigns to the Government of the Republic of Kazakhstan legal costs on this case in the amount of 238 thousand rubles of the Russian Federation. Being guided by Items 8.38-8.43 of Regulations of Economic Court, the board of Economic Court of the Commonwealth of Independent States solved:

1. Recognize that the Government of the Republic of Kazakhstan did not provide accomplishment in full of the obligations following from the Agreement between the Government of the Republic of Kazakhstan and the Government of the Republic of Belarus on supply of grain of harvest of 1993 and assistance in its cleaning of August 4, 1993.

2. Recommend to the Government of the Republic of Kazakhstan to take in three-months time measures for debt repayment to the Republic of Belarus on compensation of machine operators and for use of motor transport.

3. Collect from the Government of the Republic of Kazakhstan legal costs on case in the amount of 238 thousand rubles of the Russian Federation.

4. This decision becomes effective from the moment of receipt of its copies by the parties and can be appealed in the Plenum of Economic Court of the Commonwealth of Independent States in three-months time.

5. The decision is subject to obligatory publication in editions of the Commonwealth and mass media of the State Parties according to Item 16 of the Regulations on Economic Court of the Commonwealth of Independent States and Item 14.4 of Regulations of Economic Court.

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