Agreement between the Russian Federation and Republic of Kazakhstan on settlement of mutual financial questions

of October 8, 1998

The Russian Federation and the Republic of Kazakhstan which are hereinafter referred to as with the Parties, being guided by spirit of the Declaration on eternal friendship and alliance,

oriented in the XXI century,

recognizing need of settlement of cross financial liabilities according to bilateral agreements, agreements and protocols,

agreed as follows:

Article 1

The parties recognize availability of the cross financial liabilities including: from the Russian Side:

rent receivable for use of the Baikonur complex in 1994 - 1998 according to the Lease agreement of the Baikonur complex between the Government of the Russian Federation and the Government of the Republic of Kazakhstan of December 10, 1994 - 575 million US dollars;

rent receivable for use of military proving grounds in 1997 - 1998 according to the Contract between the Government of the Russian Federation and the Government of the Republic of Kazakhstan on lease of the proving ground of Sara-Shagan of October 18, 1996, the Contract between the Government of the Russian Federation and the Government of the Republic of Kazakhstan on lease of the proving ground Emba of October 18, 1996, the Contract between the Government of the Russian Federation and the Government of the Republic of Kazakhstan on lease of the objects and fighting fields 929 of the State flight-test center of the Russian Federation located in the territory of the Republic of Kazakhstan of October 18, 1996, the Contract between the Government of the Russian Federation and the Government of the Republic of Kazakhstan on lease of the objects and fighting fields 4 of the State central polygon of the Russian Federation located in the territory of the Republic of Kazakhstan of October 18, 1996 in the total amount of 55 million US dollars;

compensation according to the Agreement between the Russian Federation and the Republic of Kazakhstan on the basic principles and conditions of use of the Baikonur spaceport of March 28, 1994 property losses and expenses of the Republic of Kazakhstan on content and operation of the Baikonur complex in 1992 - 1993 in the amount of 1318 million US dollars;

compensation of the property losses and expenses of the Republic of Kazakhstan connected with operation of military proving grounds in 1992 - 1996 according to the leases of polygons mentioned in this Article in total amount 137, 5 million US dollars; from the Kazakhstan Side:

debt on the public credits granted by the Russian Federation, and to the added interest for using the credits in total amount 1441, 1 million US dollars, including:

according to the Agreement between the Government of the Russian Federation and the Government of the Republic of Kazakhstan on renewal of debt on the technical credits following the results of 1992 and январяиюня 1993 in public credit to the Government of the Republic of Kazakhstan of July 29, 1993 - 1250 million US dollars on principal debt and 123, 1 million US dollars on the added interests on credit;

according to the Agreement between the Government of the Russian Federation and the Government of the Republic of Kazakhstan on public credit for 1993 of July 29, 1993 - 68 million US dollars on principal debt.

Article 2

Compensation of property losses and expenses of the Republic of Kazakhstan on content and operation of the Baikonur complex in 1992 - 1993 determined in Article 1 of this agreement decreases by the amount 393, of 8 million US dollars made by the Russian Federation on recovery of fixed assets of the Baikonur complex in 1992 - 1993.

Article 3

The parties agreed to include in cross financial liabilities within this agreement debts of business entities:

debt on obligations of state-owned company JSC Kazkontrakt to FKK "Roscontract" for 1993 - 136, 3 million US dollars;

NES "Kazakhstanenergo" before RAO UES of Russia for 1994 - 1996 of 114, 3 million US dollars.

Article 4

The parties make one-time repayment of the cross financial liabilities listed in Articles 1, 2 and 3 this agreements on the amount 1691, 7 million US dollars.

Article 5

The Russian Federation refuses compensation of the costs made by the Russian Side on content of the citizens of the Republic of Kazakhstan living to Baikonur since 1995 until ratification by Kazakhstan of the Agreement between the Russian Federation and the Republic of Kazakhstan about the status of the city of Baikonur, procedure for forming and the status of its executive bodies.

Article 6

Since 1999 transfer of the rent for use of the Baikonur complex and military proving grounds is performed according to lease agreements.

In 1999 payment of part of the rent for use of the Baikonur complex in the amount of 65 million US dollars is performed by goods, 50 million US dollars - in cash.

The parties agreed that from the date of entry into force of this agreement they will not lash payment of the rent for the Baikonur complex and voyennoispytatelny polygons to debts of business entities.

Article 7

The parties charge to the Ministry of Finance of the Russian Federation and the Ministry of Finance of the Republic of Kazakhstan to make together with the Central bank of the Russian Federation, Vnesheconombank and National Bank of the Republic of Kazakhstan the changes following from terms of this agreement to technical procedure of payments and account management.

Article 8

This agreement becomes effective from the date of the last notification on accomplishment by the Parties of interstate procedures necessary for this purpose * and stops the action for date of full implementation of obligations under this agreement. It is made in Alma-Ata, Moscow on October 8, 1998 in duplicate, everyone in the Russian and Kazakh languages, and both texts are equally authoritative.

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