Agreement on the agreed principles of monetarist policies

of December 9, 2010

The Republic of Belarus, the Republic of Kazakhstan and the Russian Federation which are hereinafter referred to as with the Parties

aiming at deepening of economic integration and development of cooperation in monetary and financial sphere,

promoting free movement of goods, services and the capital in the territory of gosudarstvuchastnik of the Common economic space,

recognizing importance of collateral actions on coordination of monetarist policies within the Common economic space for the purpose of increase in role of national currencies of the State Parties of the Common economic space in the foreign trade and investment transactions and ensuring mutual convertibility of the specified currencies,

relying on the principles of equality and mutual advantage taking into account economic features of each of the State Parties of the Common economic space,

agreed as follows:

Article 1

For the purposes of this agreement the following terms are used:

"resident of the State Party of this agreement" - resident of one of the State Parties of this agreement according to the foreign exchange legislation of this state;

"the nonresident of the State Party of this agreement" - resident of the state which is not the State Party of this agreement;

"the third country" - the state or jurisdiction, not being participants of this agreement;

"currency restrictions" - legislatively set restrictions for the currency transactions expressed in their direct prohibition, limitation of amounts, quantity and terms of carrying out, payment currency, establishment of requirements of receipt of special permissions (licenses) for their carrying out, reservations of part, all amount or the amount, multiple all amount of the performed currency transaction and also the restrictions connected with opening and account management in the territory of the State Parties of this agreement;

"liberalization measures" - measures of which easing or cancellation of currency restrictions concerning currency transactions between residents of the State Parties of this agreement, and also concerning transactions with nonresidents of the State Parties of this agreement is result.

In the international treaties signed for realization of provisions of Articles 3-5 of this agreement other terms, necessary for their accomplishment, can be used.

Article 2

The parties are developed and pursue monetarist policies on the basis of the following principles:

1) the Parties perform harmonization and rapprochement of approaches to forming and carrying out monetarist policies step by step and in that amount in what it corresponds to the developed macroeconomic requirements of integration cooperation;

2) the Parties create necessary organization-legal conditions at national and interstate level for development of integration processes in the currency sphere, coordination and approvals of monetarist policies;

3) the Parties do not take actions in the currency sphere which can negatively influence development of integration processes, and in case of their forced application aim to minimize effects of such actions;

4) the Parties pursue the economic policy directed to increase in trust to national currencies of the Parties as in the domestic foreign exchange market of each State Party of this agreement, and in the international foreign exchange markets.

Article 3

For the purpose of carrying out the approved monetarist policies of the Party take the following measures:

1) coordination of policy of the exchange rate of national currencies (further - course policy) for ensuring expansion of use of national currencies of the State Parties of this agreement in mutual calculations of residents of the State Parties of this agreement;

2) ensuring convertibility of national currencies under the current and capital Articles of paying balance without restrictions by creation of conditions for possibility of purchase and sale of foreign currency by residents of the State Parties of this agreement through banks of the State Parties of this agreement without restrictions;

3) creation of conditions and providing direct mutual quotations of national currencies of the Parties;

4) ensuring carrying out mutual payments between participants of foreign economic activity of the State Parties of this agreement in national currencies of the State Parties of this agreement;

5) non-admission of the plurality of the official exchange rates of national currencies interfering mutual trade between residents of the State Parties of this agreement;

6) establishment of the State Parties of this agreement of the official rates of national currencies by the Central (national) Banks on the basis of the rate which developed in the stock exchange market or on the basis of cross-rates of national currency to US dollar;

7) carrying out mutual consultations with the purpose of development and coordination of actions of course policy;

8) exchange on systematic basis information on condition and perspectives of development of the foreign exchange market;

9) forming of the integrated foreign exchange market of the State Parties of this agreement;

10) providing the admission with each Party on the national foreign exchange market of the banks which are residents of the State Parties of this agreement and having according to the legislation of the state of the organization the right to implementation of currency transactions for carrying out interbank conversion transactions on the terms of legal regime, is at least favorable, than that which is provided to the banks which are residents of this Party;

11) provision to banks of the State Parties of this agreement of the right to free conversion of the means belonging to them in national currencies of the State Parties of this agreement which are on their correspondent accounts in currencies of the third countries;

12) further development and increase in liquidity of the national foreign exchange markets;

13) creation of conditions for placement of currency assets of the Central (national) Banks of gosudarstvuchastnik of this agreement in national currencies of the State Parties of this agreement, including in government securities of the State Parties of this agreement;

14) enhancement of the mechanism of the payment and settlement relations between the State Parties of this agreement based on expansion of use of national currencies in settlement between residents of the State Parties of this agreement.

Article 4

For the purpose of rapprochement of the legislation of the State Parties of this agreement and regulatory legal acts of the Parties regulating currency legal relationship and taking measures of liberalization, the Party agreed as follows:

1) the Parties provide gradual elimination of the currency restrictions interfering effective economic cooperation concerning currency transactions and opening or account management by residents of the State Parties of this agreement in the banks located in the territory of the State Parties of this agreement;

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