Agreement between the Government of the Republic of Belarus and Government of the Russian Federation on regulation of rates for communication services

of June 30, 2003

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

being guided by the Agreement between the Government of the Republic of Belarus and the Government of the Russian Federation on price regulation (rates) for products (services) in the field of transport, bonds, power industry and the gas industry of April 13, 1999,

in agreement performance about creation of the Union State of December 8, 1999,

for the benefit of carrying out single adjustment policy of rates for services of electric and mail service

agreed as follows:

Article 1

The concepts used in this agreement mean the following:

"settlement dachshunds" - the part of rate reflecting the cost of works on provision of network service in certain stage of engineering procedure;

"the omission of the schedule" - process of establishment of connection and information transfer between subscribers (networks of electric communication);

"special drawing right" - the conventional monetary unit of the International Monetary Fund applied by the Parties in case of establishment of rates for services of the international electric and mail service and when drawing the international accounts.

Article 2

The parties, recognizing the sovereign right of each Party to regulation of rates for services of electric and mail service, perform rapprochement of tariff policy of the Republic of Belarus and the Russian Federation taking into account the following principles:

rates for regulated communication services shall compensate completely costs for rendering these services, ensuring at the same time profitable functioning of the organizations of communication (proceeding from the rational needs for communication channels and the telecommunication equipment), for uninterrupted and high-quality requirements satisfaction of consumers of both states;

rates for the communication services of the same name shall be differentiated on two categories of consumers (physical persons and legal entity);

profitability level by separate types of regulated communication services is established differentially depending on their social importance, consumer value and need of market development of services;

step-by-step reducing cross subsidizing of unprofitable services of electric communication due to rendering highly profitable services is provided;

phased transition to tariffing of communication services by pricing limiting method is carried out.

Article 3

Settlement dachshunds for the omission of the schedule on national networks of electric communication of the states of the Parties are determined by single methodology according to recommendations of International union of telecommunication.

The size of settlement dachshunds for the omission of the schedule on national networks of electric communication is established in special drawing rights.

Article 4

Rates for services of electric communication in the direction of countries of the Commonwealth of Independent States are determined using decreasing coefficient to special drawing right in the amount of, established by decisions of Council of heads of administrations of communication of the Regional commonwealth in the field of communication.

Article 5

Rates for services of the international mail service are determined by terminal expenses according to documents of Universal Postal Union.

Article 6

For the purpose of ensuring availability to consumers of services of mail service in settlement for these services between the Republic of Belarus and the Russian Federation the discounts to rates on terminal expenses established by bilateral agreements between operators of mail service can be applied.

Article 7

The parties promote implementation according to the Regulations of the international telecommunication signed on December 8, 1988 in Melbourne and acts of Universal Postal Union of settlement between operators of electric and mail service of the Republic of Belarus and the Russian Federation for the provided international services of electric and mail service without charge of the value added tax.

Article 8

The parties for the purpose of coordination of tariff policy give support to implementation of mutual exchange of information about rates for services of electric and mail service.

Article 9

The parties promote creation of the unified regulatory legal base determining the principles of formation of service prices of electric and mail service.

Article 10

The parties can according to the mutual arrangement make the changes and additions which are drawn up by the separate protocols which are integral part of this agreement to this agreement.

Article 11

Disputes on interpretation and application of provisions of this agreement are permitted by negotiations and consultations between the Parties.

Article 12

This agreement becomes effective from signature date and will be valid before the expiration of 6 months from the date of receipt by one Party of the written notice of other Party of the intention to stop its action.

It is made in St. Petersburg on June 30, 2003 in duplicate in Russian.

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