Agreement on creation of economic union

of September 24, 1993

The State Parties of this Agreement which are hereinafter referred to as - Contracting Parties,

based on historical community of the people and understanding importance of expansion and deepening of the comprehensive and mutually beneficial economic relations,

respecting sovereignty of each state and confirming the commitment to the purposes and the principles of constituent documents on creation of the Commonwealth of Independent States,

aiming to provide favorable conditions for dynamic and harmonious development of economies and carrying out economic reforms for the benefit of increase in living standards of the population of the states,

understanding objective need of forming and development of the Common Economic Space based on free movement of goods, services, labor power and the capitals and also consolidations of direct connections of business entities of Contracting Parties,

understanding importance of technological interrelations of the high-integrated scientific and technical and potential productions of the states,

aiming to create conditions for organic inclusion of the economies in the world economy,

being guided by the universally recognized norms of international law,

agreed about creation of Economic union.

CHAPTER I. PURPOSES AND PRINCIPLES OF ECONOMIC UNION

Article 1

The economic union is created on the basis of voluntary participation, respect of sovereignty, territorial integrity, equal rights, and also the cross liability of Contracting Parties for implementation of provisions of this agreement.

In the activities Contracting Parties within Economic union are guided by the following international legal principles:

non-interference to cases of each other, respect of human rights and freedoms;

peaceful resolution of disputes and non-use of any kinds of economic pressure in the relations with each other;

responsibility for undertaken obligations;

exception of any discrimination on national and to other signs concerning legal entities and physical persons of Contracting Parties;

carrying out mutual consultations with the purpose of coordination of line items and taking measures in case of implementation of economic aggression from one state or several states which are not participating in this Agreement against any of Contracting Parties.

Article 2

The purposes of Economic union are:

forming of conditions of stable development of economies of Contracting Parties for the benefit of increase in living standards of their population;

step-by-step creation of the Common Economic Space based on the market relations;

creation of equal opportunities and guarantees for all business entities;

joint implementation of economic projects, of common interest;

decision common efforts of environmental problems, and also natural disaster response and catastrophic crashes.

Article 3

The economic union assumes:

free movement of goods, services, capitals and labor power;

the approved monetary, budget, tax, price, external economic, customs and monetarist policies;

the harmonized economic legislation of Contracting Parties;

availability of general statistical base.

Article 4

Contracting parties agreed that the Economic union is created by step-by-step deepening of integration, coordination of actions in implementation of economic reforms through:

interstate (multilateral) Free Trade Association;

custom union;

total market of goods, services, capitals and labor power;

currency (cash) union.

For each form of integration the complex of the interconnected actions which shall be accepted and performed according to free standing agreements is provided.

CHAPTER II. TRADE AND ECONOMIC RELATIONS

Article 5

According to Article 4 of this Agreement for the purpose of creation of interstate Free Trade Association Contracting Parties agreed in the relations on:

consecutive decrease and cancellation of customs duties, taxes and fees, and also quantitative and all others equivalent it on the effects of restrictions;

harmonization of the customs legislation, mechanisms of tariff and non-tariff regulation;

simplification of customs procedures;

unification of forms of customs documentation for maintaining customs statistics;

step-by-step rapprochement of rates for transportation of goods and passengers, transit rates in case of observance of liberty principle of transit;

non-admission of unauthorized re-export to the third countries.

Article 6

During creation of custom union Contracting Parties along with complete cancellation of tariff and non-tariff regulation of movement of goods, works and services agreed on:

establishment of general customs tariff in the relations with the states which are not participating in this Agreement;

coordination of foreign trade policy concerning the states which are not participating in this Agreement.

Article 7

Upon transition to the total market Contracting Parties:

will create necessary legal, economic and organizational conditions for free movement of the capitals and labor power;

will create conditions for fair competition, including the mechanism of anti-monopoly regulation;

will pursue the coordinated policy in the field of development of transport and communications directed to implementation of effective transportation of goods and passengers;

will provide equal economic conditions for mutual investment of the capitals into development of economies and will create the efficient mechanism of protection of the rights and interests of investors.

Article 8

In mutual trade the free (contractual) prices developing taking into account integration of the domestic markets of Contracting Parties will be applied. Contracting parties not apply price discrimination to their business entities.

Article 9

Contracting parties will not perform without mutual approval unilateral actions of non-economic nature for the purpose of restriction of access to the markets.

Contracting parties can jointly or individually enter temporary protective and other measures for mutual trade including for reasons of homeland security according to the international practice.

Contracting parties will approve procedure and conditions of introduction of such measures by the conclusion of the relevant agreement or agreements.

CHAPTER III. ENTREPRENEURSHIP AND INVESTMENTS

Article 10

Contracting parties will provide national legal regime for activities of business entities - residents of gosudarstvuchastnik of this Agreement in the territories.

Article 11

Contracting parties promote development of direct commercial ties between business entities, create favorable conditions for strengthening of production cooperation.

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