Agreement on single rules of provision of industrial subsidies

of December 9, 2010

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

understanding importance of creation of conditions for development of industrial production,

for the purpose of development of economy, expansion of production, stimulation of increase in management efficiency and scientific and technical progress, ensuring optimal resource allocation in the goods markets within the Common economic space of the Republic of Belarus, the Republic of Kazakhstan and the Russian Federation,

wishing to provide conditions for stable and effective development of economies of the states of the Parties, and also the conditions promoting development of mutual trade and fair competition between the Parties;

being guided by the commonly accepted regulations and the principles of international law,

agreed as follows:

Article 1 Subject and coverage of this agreement

1. Subject of this agreement is establishment of single rules of provision of subsidies for the territories of member countries of this agreement concerning manufactured goods.

2. Regulations of this agreement regulate provision of subsidies, including by provision or receipt of services which are directly connected with production, sale and consumption of goods.

3. Nothing in this agreement shall be interpreted:

as the requirement to any Party to provide any information which disclosure she considers to the contradicting essential interests of its safety, or

as obstacle to any Party to take such actions which it will consider necessary for protection of essential interests of the safety:

a) concerning the split materials or materials from which they are made;

b) concerning development, production and arms trade, ammunition and military materials, and also other goods and materials which are performed directly or indirectly for the purposes of supply of armed forces;

c) if they are accepted in wartime or in other force majeure in the international relations, or

as obstacle to any Party to take any actions in pursuance of its obligations for Articles of organization of the United Nations for preservation of peace around the world and the international security.

4. The obligations of the Parties arising in connection with provisions of this agreement do not extend to legal relationship of the Parties with the third countries.

5. Action of this agreement does not extend to subsidies as they are determined in Item 3 of Article 2 of this agreement, provided in the territory of the states of the Parties before enforcement of this agreement.

Article 2 of Determination

For the purposes of the present the Agreement the following determinations are used:

1) administrative and territorial units - subjects of the Russian Federation (local government bodies) and/or the areas of the Republic of Belarus and the Republic of Kazakhstan (including the cities of Minsk, Astana and Almaty);

2) industry of national economy - all producers of similar goods in the state of the Party or those from them which share in the total production of similar goods in the state of the Party constitutes at least 25 percent;

3) subsidy - the financial assistance rendered by the subsidizing body of the state of the Party (or the Party authorized by the state the structure) as a result of which are created provides) benefits, and performed by means of:

direct transfer of money (for example, in the form of irrevocable loans, the credits or acquisition of share in the authorized capital or its increase or the obligation on transfer of such means (for example, guarantees on the credits);

complete or partial refusal of collection of payments which would shall arrive in the income of the state of the Party (for example, tax benefits, debt write-off). At the same time release of the exported goods from the duties and taxes levied from the similar goods intended for internal consumption, or reduction of such duties and taxes, or return of such duties and taxes in the amount of, not exceeding actually added amount, is not considered as subsidy;

provisions of goods or services, except for the goods or services intended for maintenance and development of general infrastructure;

purchases of goods;

or any other form of support of the income or the prices which affects, directly or indirectly, reducing import of industrial goods from the territory of the state of the either party or increase in commodity exportation at the territory of the state of the either party therefore the benefit is provided;

4) manufactured goods - the goods classified in groups 25 - 97 Commodity nomenclatures of foreign economic activity of EurAsEC (further - the Commodity Nomenclature of Foreign Economic Activity), and also fish and fish products, except for the goods classified according to the Commodity Nomenclature of Foreign Economic Activity subline items of 2905 of 43, of 2905 of 44, line items 3301, 3501-3505, subline items of the 3809th 10, the 3824th 60, line items 4101-4103, 4301, 5001 - 5003, 51015103, 5201 - 5203, 5301, 53021;

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1 Subline item 2905 43 - mannitol, subline item 2905 44 - sorbite, line item 3301 - essential oils, line item 3501 - 3505 - albuminoidny substances, the modified starches, glues, subline item 3809 10 - substances for processing of surfaces, subline item 3824 60 - sorbitol, other products, line items 4101 - 4103 - skins and rawhide, line item 4301 - unmanufactured furs, line items 5001 - 5003 - raw silk and waste of silk, line item 5101 - 5103 - wool and hair of animals, line items 5201 - 5203 - raw cotton, cotton waste, fiber cotton combed, line item 5301 - flax raw, line item 5302 - hemp crude.

The provided description of goods optionally is exhaustive.

5) the subsidizing body - one or several state bodies or local government bodies of the states of the Parties performing decision making in the field of provision of subsidies.

The subsidizing body can charge or order to any other organization to execute one or several functions assigned to it relating to provision of subsidies (further - the authorized agent). Such actions of the authorized agent are considered as actions of the subsidizing body.

The acts of the Head of state of the Party directed to provision of subsidies are considered as actions of the subsidizing body;

6) damage of industry of national economy - material damage of industry of national economy, threat of causing material damage of industry of national economy or essential delay of creation of industry of national economy.

Material damage, industries of national economy - the deterioration of the situation of industry of national economy confirmed with proofs which occurred owing to commodity importation from the territory of the state of the Party which provided subsidy in case of production, transportation, storage of these goods and is expressed in production reduction and realization of similar goods in the territory of the state of the Party, decrease in profitability of production of such goods, negative impact on trade inventories, employment, the salary level and the level of investments into this industry.

Threat of causing material damage of industry of national economy - the inevitability of causing material damage of industry of national economy confirmed with proofs;

7) similar goods - the goods completely identical to goods, in case of production, export from the territory of the state of the Party or transportation of which the specific subsidy, or for lack of such goods other goods which have the characteristics close to characteristics of goods was used, in case of production, export from the territory of the state of the Party or transportation of which the specific subsidy was used;

8) competent authority - the public authority of the state of the Party responsible for conducting investigations;

9) the receiver of subsidy - the producer of goods who is the beneficiary from subsidy.

Article 3 Specific subsidies

1. To determine whether the subsidy is specific to industrial enterprise or industry or group of industrial enterprises or industries (further in this agreement - certain companies) within the territory in which the subsidizing body has powers are applied the following principles:

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