Agreement on the single principles and regulations of activities of subjects of natural monopolies

of December 9, 2010

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

based on the Agreement on the Customs union between the Russian Federation and the Republic of Belarus of January 6, 1995, the Agreement on the Customs union of January 20, 1995, the Agreement on the Customs union and the Common economic space of February 26, 1999, the Constitutive treaty of Eurasian economic community of October 10, 2000, the Agreement on creation of single customs area and forming of custom union of October 6, 2007,

aiming to perform coordinated policy of regulation of activities of subjects of natural monopolies on the basis of the single principles and rules,

agreed as follows:

Section 1 General provisions

Article 1 Agreement Purpose

The purpose of this agreement is creation of the legal basis for forming and establishment of the single principles and general regulations of activities of subjects of natural monopolies of the states of the Parties for ensuring balance of consumer interests, subjects of the natural monopolies and society providing availability of the services realized by subjects of natural monopolies, efficiency of functioning and development of subjects of natural monopolies in the states of the Parties and harmonizations on their basis of the national legal system of the Parties in the field of regulation of activities of subjects of natural monopolies.

The article 2 Determination of Terms, used in the Agreement

For the purposes of this agreement the following basic concepts are used:

"domestic market" - the market of the state of the Party on which services of subjects of natural monopolies are traded;

"natural monopoly" - market situation of services in case of which creation of competitive conditions for satisfaction of demand for certain type of service is impossible or economically inexpedient owing to technological features of production and provision of this type of service;

"consumer" - the subject of the civil law (physical person or legal entity) using or intending to use services rendered by subjects of natural monopolies;

"the subject of natural monopoly" - the business entity rendering services in spheres of the natural monopolies established by the national legal system of the Parties;

"rendering services" - rendering (provision) services, production (realization) of the goods which are object of civil circulation;

"business entity" - the legal entity or physical person performing economic activity on its own behalf;

"the sphere of natural monopolies" - the sphere of the address of service which is legislatively carried to natural monopoly in which the consumer can acquire services of subjects of natural monopolies;

"the national legal system of the Parties" - the legislation of each of the states of the Parties concerning spheres of natural monopolies;

"national authorities of the Parties" - the bodies of the state of the Party exercising regulation and (or) control of activities of subjects of natural monopolies;

"sectoral (industry) agreements" the international agreements of the states of the Parties, including the bilateral international agreements of the Parties concerning spheres of the natural monopolies specified in Appendix 1 to this agreement;

"access to services of subjects of natural monopolies" - rendering by subjects of natural monopolies of the state of one Party of the services relating to the sphere of natural monopolies, to consumers of the state of other Party on conditions is at least favorable, than on what the similar service is provided to consumers of the first state of the Party if technically possible.

Article 3 Scope of the Agreement

1. This agreement extends to the relations with participation of subjects of natural monopolies, consumers, executive bodies and local government bodies of the states of the Parties in spheres of the natural monopolies exerting impact on trade between the states of the Parties and specified in Appendix 1 to this agreement.

2. Features of application of this agreement in specific spheres of natural monopolies, including staging of forming of the Common economic space concerning subjects of natural monopolies, are determined in the relevant sectoral (industry) agreements.

3. Also the spheres of natural monopolies specified in Appendix 2 to this agreement belong to spheres of natural monopolies in the states of the Parties.

Requirements of the national legal system of the Parties are applied to spheres of the natural monopolies specified in Appendix 2 to this agreement.

4. The list of services of subjects of the natural monopolies carried to spheres of natural monopolies is established by the national legal system of the Parties.

5. The parties aim at harmonization of spheres of the natural monopolies which are rocked to sleep in Appendices 1 and 2 to this agreement by their reducing and with possible determination of transition period in sectoral (industry) agreements.

6. Expansion of spheres of natural monopolies in the states of the Parties is performed:

- according to the national legal system of the Parties if the state of the Party intends to carry the sphere which is the sphere of natural monopoly in the state of other Party to the sphere of natural monopolies and it is given in Appendices 1 or 2 to this agreement;

- according to the decision of the Commission of custom union if the state of the Party intends to carry other sphere of natural monopolies which is not specified in Appendices 1 and 2 to this agreement after the corresponding appeal of the state of the Party to the Commission of custom union to the sphere of natural monopolies.

7. This agreement does not extend to the relations settled by the existing bilateral international treaties of the Parties. Again signed sectoral (industry) agreements of the Parties cannot contradict this agreement.

8. The agreement of the Parties on the single principles and competition rules is applied to subjects of natural monopolies taking into account the features provided by this agreement.

9. The sphere of gas transportation is regulated by the agreement on rules of access to services of natural monopolies in the field of gas transportation on gas-transport systems, including bases of pricing and tariff policy.

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