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Agreement between the Government of the Russian Federation and Government of Ukraine on free trade

of June 24, 1993

(as of October 4, 2001)

The government of the Russian Federation and the Government of Ukraine which are hereinafter referred to as - Contracting parties,

considering the multilateral agreement about coordination of works on questions of export control of raw materials, materials, the equipment, technologies and services which can be used for creation of weapons of mass destruction and rocket means of its delivery of July 26, 1992,

aiming at development of trade and economic cooperation between the Russian Federation and Ukraine on the basis of equality and mutual advantage,

proceeding from the sovereign right of each state to pursue independent external economic policy and to provide accomplishment of the corresponding international obligations and realization of the proclaimed intentions,

intending to promote creation of single commodity market, services, the capitals and labor power,

agreed as follows:

Article 1

1. Contracting parties do not apply the customs duties, taxes and fees having equivalent action for export and/or commodity import, one of Contracting Parties coming from customs area and intended for customs area of other Contracting Party. Withdrawals from this trade regime according to the approved nomenclature of goods are drawn up by the separate documents which are integral part of this agreement. At the same time Contracting Parties will approve step-by-step reducing the withdrawals provided by the specified documents.

2. For the purposes of this agreement and for its action the goods coming from the territory of Contracting Parties are understood as goods:

and / completely made in the territory of Contracting Parties

and/or

/ undergone to processing in the territory of Contracting Parties with use of raw materials, materials and components origin from the third countries, and changed with respect thereto accessory on classification of the Commodity nomenclature of foreign economic activity / Commodity Nomenclature of Foreign Economic Activity/, the tariff and statistical nomenclature of the European Economic Community based on the Harmonized Commodity description and coding system and Combined, proceeding from the four first signs

and/or

in / made with use specified in the Item of raw materials, materials and components provided that their aggregate value does not exceed the fixed share of export price of implementable goods.

Detailed rules of goods origin will be drawn up by Contracting Parties the separate document which will be integral part of this agreement.

Article 2

Contracting parties will not be:

directly or indirectly to assess the goods falling under action of this agreement, the internal taxes or charges exceeding the corresponding taxes or charges which assess the similar goods of internal production or goods coming from the third countries;

enter concerning the import or commodity export falling under action of this agreement, any special restrictions or requirements which in similar situation are not applied to similar goods of internal production or goods by origin from the third countries;

apply to warehousing, overload, storage, transportation of goods by origin of their other Contracting Party, and also payments and payment transfer of the rule others, than those which are applied in similar cases to own goods or goods by origin from the third countries.

Article 3

1. Contracting parties will abstain from application of quantitative restrictions or measures equivalent to them for export and/or commodity import within this agreement.

2. The quantitative restrictions mentioned in Item 1 of this Article can be established unilaterally reasonably and for strictly certain term only in cases:

acute shortage of these goods in the domestic market - before stabilization of the situation in the market;

acute shortage of paying balance - before stabilization of the situation with paying balance;

if any goods are imported on the territory of one of Contracting Parties in such increased quantities or on such conditions which cause or threaten to cause damage to domestic manufacturers of the similar or directly competing goods;

for the purpose of implementation of measures, stipulated in Article 4 this agreements.

3. The quantitative restrictions mentioned in Item 1 of this Article can be also established according to the mutual arrangement of the Parties, and join in the annual Protocols mentioned in Item 1 of Article 1 of this agreement.

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