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The contract between Ukraine and the Azerbaijan Republic on economic cooperation for 2000 - 2009

of March 16, 2000

Ukraine and the Azerbaijan Republic, further - the Contractual Parties,

being guided by the Treaty of friendship, cooperation and partnership between Ukraine and the Azerbaijan Republic of March 16, 2000,

proceeding from need of further consolidation and development equal and mutually advantageous trade and economic and relations of production, provision of the long-term and settled nature by it, effective use of economic and scientific and technical capacity of two states and growth in prosperity of their people,

attaching importance to harmonization of implementation of economic reforms, creation of conditions for phased transition to free movement of goods, services, the capitals and labor power.

agreed about it:

Article 1

The contractual Parties will perform the Program of long-term economic cooperation between Ukraine and the Azerbaijan Republic for 2000 - 2009 (further - the Program).

The procedure for financing of the Program is approved if necessary on each of Program actions separately.

Article 2

Economic cooperation of the Contractual Parties is performed by interaction between the managing subjects irrespective of their patterns of ownership and subordination, with respect for the universally recognized norms of international law and the national legal system of both states.

The contractual Parties will create favorable conditions for forming and realization of joint projects and programs of economic cooperation, to promote development of production cooperation, creation of joint businesses of different types and patterns of ownership, mutual participation in privatization, in investment projects according to the national legal system of both states.

The contractual Parties will regularly exchange on the main directions of social and economic transformations, structural adjustment, concerning regulatory framework in the field of foreign economic activity, customs and tariff and tax policy, anti-monopoly regulation and, if necessary, to accept bilateral agreements in these spheres.

Article 3

The Cabinet of Ministers of Ukraine and the Government of the Azerbaijan Republic through the Joint intergovernmental Ukrainian-Azerbaijani commission on questions of economic cooperation will coordinate accomplishment of the Program, to exercise step-by-step control of its realization and, in case of requirement, to introduce amendments in it.

Article 4

The course of accomplishment of the Program at least once a year is considered at meeting of the Joint intergovernmental Ukrainian-Azerbaijani commission on economic cooperation.

Article 5

Disputes on interpretation and application of provisions of this agreement are subject to settlement by consultations and negotiations.

Article 6

Changes and additions which are drawn up by the protocols which are integral parts of this Agreement can be made to this Agreement and become effective according to Article 8 provisions.

Article 7

Accomplishment of provisions of this agreement does not affect the rights and obligations of the Contractual Parties according to other international treaties and agreements which participants they are.

Article 8

This Agreement becomes effective from the date of receipt of the last written message which confirms accomplishment of the interstate procedures by the Contractual Parties necessary for entry into force of the Agreement and is effective till December 31, 2009.

Each of the Contractual Parties can terminate this Agreement by the written message of other Contractual Party. In this case the Agreement stops the action in 6 (six) months from the date of receipt of such message.

Cancellation of this Agreement does not harm implementation of projects which began to be implemented according to the Program to the written message on cancellation of the Agreement.

It is made in Baku on March 16, 2000 in duplicate, everyone in the Ukrainian, Azerbaijani and Russian languages, at the same time all texts are authentic.

In case of disagreements in interpretation and accomplishment of this Agreement the Contractual Parties will address the text stated in Russian.


For Ukraine 

For the Azerbaijan Republic


to the Contract between Ukraine and the Azerbaijan Republic on economic cooperation for 2000 - 2009

The program of long-term economic cooperation between Ukraine and the Azerbaijan Republic for 2000 - 2009

I. Condition and problems of development of economic cooperation

Between Ukraine and the Azerbaijan Republic more than 50 bilateral documents are concluded.

The main in relations of two states are the Treaty of friendship and cooperation, the Agreement on bases of the interstate relations.

For expansion of the external economic relations intergovernmental agreements are signed: about free trade, about production cooperation, about assistance and mutual protection of investments.

Development of bilateral cooperation is promoted by agreements on such directions of cooperation: customs, payment - settlement, transport, military, bonds, on humanitarian issues.

Thus, the proper bilateral contractual legal base on essentially new bases, the conventional legal mechanisms is created. It creates effective legal, economic premises for further development trade and economic and sci-tech cooperation between business entities on the principles of market economy of both countries.

At the same time, radical changes which took place in economy of Ukraine and the Azerbaijan Republic after declaration of independence by both states formation of market mechanisms was followed by weakening of economic and cooperation bonds, considerable declining production and reducing mutual goods turnover.

In the conditions of violation of earlier created cooperation bonds, deterioration in financial condition of the companies, imperfection of system of settlement, asymmetry of systems of taxation also the structure of goods turnover worsened.

Insufficiently one of the important directions of development of cooperation of Ukraine and the Azerbaijan Republic in the economic sphere - creation of joint production structures which promote recovery and development of cooperation and technological bonds of the companies and industries, storage and more effective use of specialization of the companies in the field of mechanical engineering, chemistry, fuel and energy and military-industrial complexes, mobilization of financial and investment resources by means of creation of financial and industrial groups developed. The legal basis for the organization and activities of such structures in legal acts of Ukraine and the Azerbaijan Republic still significantly differs that is serious brake on the way of their creation.

The similar provision developed with development of long-term interstate target comprehensive programs according to the problem resolution which are of mutual interest, in the field of production of various types, including technically complex and knowledge-intensive products, in carrying out basic researches, in development of metrology and enhancement of reference base of Ukraine and the Azerbaijan Republic.

In case of manifestation of mutual interest of the Ukrainian and Azerbaijani managing subjects in participation in incorporating the companies located in the territories of both states, and first of all in such industries as power, the ferrous and non-ferrous metallurgy, recycling industry of agro-industrial complex, the textile industry through discrepancy in regulatory framework of their participation in this process does not gain proper development.

Between Ukraine and the Azerbaijan Republic the questions connected with approval of the transit modes, systems of collection of the local taxes, charges and duties are not completely settled, possibilities of mutually beneficial cooperation in the field of mercantile shipping, air traffic, pipeline transport are insufficiently used.

The existing problems in the economic relations need their adequate permission, developments of long-term strategy of mutually beneficial economic cooperation based on this Program.

II. Purposes and tasks of the Program

The program is developed for the purpose of implementation by Ukraine and the Azerbaijan Republic on the long-term basis of the approved complex of actions, including normative and legal, on provision of the state assistance to development of mutually advantageous commercial, scientific and technical and other ties between two countries, to achievement of progress in production cooperation of the leading industries of national economies and annual growth on this basis of mutual goods turnover, including transit of goods of the third parties.

For permission of these tasks the Program provides interaction of state bodies of Ukraine and the Azerbaijan Republic on such main directions:

- joint research of ways which provide development of the economic cooperation directed to raising of economies of both states for the benefit of increase in level of living of the population;

- the approved interaction in implementation of institutional transformations when forming market economy of the states;

- the prevention, restriction and the termination of monopolistic activities and unfair competition from the managing subjects in the territory of Ukraine and the Azerbaijan Republic;

- rapprochement of conceptual approaches in structural adjustment of economy of both states, creation to the managing subjects of incentives for production expansion, increase in investments into its development, implementation of achievements in the field of science and advanced technologies, improvement of quality and product competitiveness that is issued;

- assistance to development of small and medium entrepreneurship in both countries.

In the course of accomplishment of the Program it will be necessary to solve such problems:

- rapprochement of regulatory framework in the field of regulation of foreign economic activity, the taxation system and competition policy, implementation of actions for mutual protection of national producers, development of interregional cooperation;

- forming of separate interstate projects and programs of economic cooperation, creation of joint businesses of various types and patterns of ownership, development of production cooperation, activation of mutual activities of national and foreign investors in the territory of both states;

- use of potential of complementarity of economic structures of Ukraine and the Azerbaijan Republic (especially through exchange of energy resources for products of metallurgical complex);

- effective use and development of transport communications and bonds;


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