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AGREEMENT BETWEEN THE GOVERNMENT OF THE KYRGYZ REPUBLIC AND GOVERNMENT OF THE RUSSIAN FEDERATION

of June 6, 2016

About cooperation in the field of oil supply and oil products

The government of the Kyrgyz Republic and the Government of the Russian Federation which further are referred to as "Party" in view of the long-term interests of two states in development of strategic cooperation enshrined in the Treaty of friendship, cooperation and mutual aid between the Republic Kyrgyzstan and the Russian Federation of June 10, 1992 and in the Declaration on eternal friendship, alliance and partnership between the Kyrgyz Republic and the Russian Federation of July 27, 2000, being guided by the Agreement on the free trade area of October 18, 2011, proceeding from interest in deepening of mutually beneficial cooperation in the field of oil supply and oil products, agreed as follows:

Article 1.

The purpose of this agreement is determination of conditions of cooperation of the Parties in the field of oil supply and oil products from the Russian Federation to the Kyrgyz Republic.

Article 2.

Activities coordination under this agreement and control of execution of this agreement is exercised by the following competent authorities:

from the Kyrgyz Side - the Ministry of Economics of the Kyrgyz Republic;

from the Russian Side - the Ministry of Energy of the Russian Federation.

In case of change of competent authorities of the Party without delay notify on this each other through diplomatic channels.

Article 3.

Competent authorities of the Parties till December 31 of the current calendar year approve amounts and the nomenclature of internal consumption in the Kyrgyz Republic of oil and oil products (further - goods) the next calendar year and approve on them the indicative balances the next calendar year considering growth of economy of the Kyrgyz Republic (further - indicative balances).

The Kyrgyz Side till November 1 of the current calendar year provides to the Russian Side in accordance with the established procedure information on accomplishment of indicative balances in 9 months and about their expected accomplishment for the current calendar year, and also offers on forming of indicative balances the next calendar year.

Article 4.

The parties create conditions for implementation by business entities (residents) of the states of the Parties of deliveries of goods from the Russian Federation to the Kyrgyz Republic.

Article 5.

1. Concerning goods delivered from the Russian Federation to the Kyrgyz Republic for internal consumption in the amounts provided by indicative balances, the Russian Side does not collect export customs duties.

2. Concerning the goods exported from the Russian Federation to the Kyrgyz Republic in calendar year over the amounts provided by indicative balances, export customs duties are subject to payment in the budget of the Russian Federation in accordance with the legislation of the Russian Federation and the international treaties and acts in the field of customs regulation constituting the right of the Eurasian Economic Union.

3. Goods of group 27 of the single Commodity nomenclature of the external economic detail of the Eurasian Economic Union for the purpose of accounting are subject to customs declaring in the Russian Federation as though they were exported out of limits of customs area of the Eurasian Economic Union.

Article 6.

1. Goods delivered from the Russian Federation to the Kyrgyz Republic according to this agreement without collection of export customs duties in the Russian Federation, are not subject to re-export to the third countries.

Competent authorities of the Parties till December 31 of the current calendar year carry out comparison of statistics of mutual trade of the Kyrgyz Republic to the Russian Federation and the third countries concerning statistical data about export (import) of goods.

2. The prohibition on the re-export provided by this Article extends to goods which country of source is the Russian Federation, imported into the Kyrgyz Republic from other state members of the Eurasian Economic Union.

3. The goods re-exported to the Kyrgyz Republic from the territories of state members of the Eurasian Economic Union in which the specified goods were exported from the Russian Federation without collection of export customs duties earlier within this agreement are recognized goods delivered to the Kyrgyz Republic from the territory of the Russian Federation without collection of export customs duties.

4. In case of establishment by the Russian Side of the fact of violation of the prohibition on re-export provided by this Article, the Parties and their competent authorities carry out conciliation procedures, stipulated in Article the 9th this agreement.

If during such procedures of the Party do not reach mutually acceptable agreements within 2 months from the date of the direction the Russian Side to the Kyrgyz Side through diplomatic channels of the first written notice of identification of the fact of re-export, the Russian Side reserves the right to suspend duty-free deliveries of goods to the Kyrgyz Republic, stipulated in Item 1 Article 5 of this agreement.

Article 7.

From the effective date this agreement of the Party in the relations among themselves apply to the investments performed within implementation of this agreement, provision of the Protocol on trade in services, organization, activities and implementation of investments (appendix No. 16 to the Agreement on the Eurasian Economic Union of May 29, 2014).

Article 8.

1. For the purpose of control of accomplishment of this agreement competent authorities of the Parties no later than 2 months from the effective date of this agreement approve the procedure for information exchange among themselves providing, in particular, quarterly provision of the Parties by competent authorities each other of information on amounts of import, export, production and internal consumption of goods in the Kyrgyz Republic.

2. The parties through the competent authorities perform timely exchange of information, including concerning regulatory legal acts of the states relating to the activities performed within accomplishment of this agreement.

Article 9.

In case of the circumstances creating obstacles for accomplishment of one of the Parties of obligations under this agreement competent authorities of the states of the Parties hold the corresponding consultations for the purpose of adoption of mutually acceptable decisions on overcoming the arisen obstacles and ensuring accomplishment of this agreement.

Disagreements between the Parties in interpretation and (or) application of provisions of this agreement which cannot be eliminated by consultations between competent authorities are permitted by negotiations between the Parties.

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