Agreement between the Government of the Republic of Uzbekistan and Government of Turkmenistan on the basic principles of creation of financial and industrial groups

of January 16, 1996

The government of the Republic of Uzbekistan and the Government of Turkmenistan which are hereinafter referred to as by the Parties

attaching importance to use of modern forms of interaction in the field of productive, investing, business and financial and credit activity,

proceeding from need of further deepening and development of economic cooperation for the benefit of both states,

for the purpose of creation of necessary conditions for stabilization and rise of industrial production, increase in investment activity and more effective use of achievements of scientific and technical progress,

for the purpose of preserving and realization on new economic, scientific and technical and production and technological bonds between the companies and the organizations of both states,

agreed as follows:

Article 1

The parties will promote creation of financial and industrial groups based on business entities of the Republic of Uzbekistan and Turkmenistan.

Understand the group of companies, organizations, the organizations, financial institutions and investment institutes created on the basis of consolidation of the capitals of her participants for the purpose of maintaining joint productive activity, establishment and development of technological and cooperation bonds, generation of profit, development and realization socially and economically significant programs and projects as financial and industrial group of the Party.

Article 2

The parties agreed that financial and industrial groups are created by business entities according to requirements of the antitrust laws of both states, in voluntary procedure according to the mutual arrangement of founders, and also on the basis of intergovernmental agreements.

Article 3

The parties determine that forming of financial and industrial groups in voluntary procedure is made in the way:

- organizations participants of groups of joint-stock company;

- transfers by participants of groups of the blocks of shares entering into group of companies which are in their property and financial credit institutes in trust management to one of participants of group (head enterprise);

- acquisitions by one of participants of group of blocks of shares of other companies the, and also organizations and organizations becoming by participants of group.

Article 4

When forming financial and industrial groups in voluntary procedure for the Party are guided by the restrictions set by the existing national legal system.

Article 5

The parties recognize that when forming financial and industrial groups on the basis of intergovernmental agreements the competent organizations of the state in the territory of which registration of group will be carried out perform project appraisal of creation of this group according to the procedure and the terms established by the national legal system.

Article 6

For the purpose of preparation of the project of creation of financial and industrial group and conducting examination of the Party will render assistance in receipt of necessary information on business entities - participants of group.

Article 7

When forming financial and industrial group on the basis of the intergovernmental agreement the list of Turkmen and Uzbekistan participants, participation forms, mechanisms of consolidation of the capitals is determined by each of the Parties according to its national legal system.

Article 8

The parties agreed that registration of financial and industrial groups are performed by the competent organizations of that state in the territory of which according to constituent documents there will be head enterprise of group, according to the procedure, established by the legislation of this state.

Article 9

For the purpose of stimulation of creation and activities of financial and industrial groups of the Party, in case of need, will provide the state guarantees and privileges according to the national legal system.

Article 10

The parties consider the priority directions of creation of financial and industrial groups cooperation in the field of cotton-processing, gas, chemical and oil-processing industry, power, transport and communication, scientific and design and exploration work, in the field of environmental management and environmental protection.

Article 11

The parties will charge to relevant organs to perform regular exchange of information about the adopted regulations concerning creation of financial and industrial groups in the territory of each of the Parties.

Article 12

By agreement the Parties changes and additions can be made to this agreement.

Article 13

This agreement becomes effective from the date of the notification the Parties about accomplishment of the interstate procedures necessary for its entry into force, and will be effective before the expiration of six months from the date of when one of the Parties sends to other Party the written notice of intention to stop its action.

It is made in the city of Chardzhev on January 16, 1996 in duplicate, everyone in the Uzbek, Turkmen and Russian languages, and all texts are equally authoritative. For the purposes of interpretation of provisions of this agreement the text in Russian is used.

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