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AGREEMENT AGREEMENT

AGREEMENT

between the Republic of Belarus, the Republic of Kazakhstan,

the Kyrgyz Republic and the Russian Federation

on the establishment of the Transport union

of 22 January 19981

The Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic and the Russian Federation, hereinafter referred to as the Parties,

promoting further development of mutually beneficial economic relationships,

based on the provisions of the Treaty between the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic and the Russian Federation on the promotion of integration in economic and humanitarian areas of March 29, 1996, and agreements on a customs union of the States Parties hereto, and reckoning that to fulfill these agreements it is essential to establish operating transport systems of the Parties in accordance with coordinated technologies and parameters,

have agreed as follows:

Article 1

The Parties shall form the Transport union as an integrated system of national transport complexes of the States Parties hereto which operate on the basis of coordinated technologies and parameters and a unified regulatory and legal framework.

The Transport union’s major objectives are:

joint use of transport infrastructure of the States Parties hereto;

more efficient use of transport and reduction of transport costs;

free movement of means of transport and conveyance of passengers and cargoes between the States Parties hereto and transit through their territories;

coordinated policy to develop and upgrade transport systems.

Article 2

To form the Transport union, the Parties undertake measures to:

a) harmonies national laws governing relationships in the area of transport and road facilities;

b) develop and implement coordinated and, if required, joint programs and projects to develop transport infrastructure, including raising funds from international financial institutions;

c) establish a common system for informational support of the transport services market and transport statistical reporting, on the base of existing industrial structures;

d) determine coordinated procedures and exercise control over entry (departure) of all means of transport, including the means of transport of countries that are not parties hereto, at external borders of the States Parties hereto and third countries;

e) formulate and realize harmonized science and technology policy by individual means of transport;

f) pursue coordinated tariff policy by means of transport;

g) establish a service system for the means of transport involved in international shipments;

h) pursue harmonized tax policy in the transport field;

i) ensure joint use of a fleet of cars and containers, pursue coordinated policy in intermodal transport to speed up movement of cargoes across national borders and transfer some freight traffic to railways;

j) allow non-compliant procedures of the conveyance of passengers and cargoes by cars and movement of means of transport between the States Parties hereto, including transit through their territories;

k) identify the amount of airport, as well as air navigation charges for airlines of the member states at the rates established for the latter by their national airlines;

l) relieve, under reciprocity conditions, means of transport of charges for the use and maintenance of roads and any other lines of communication (toll taxes), except for charges involving air and inland water transport;

m) pursue a coordinated policy to impose requirements to transport communications, loads and dimensions of the means of transport, and traffic of heavy and bulky cargoes;

n) reciprocal granting to carriers from any of the Parties transit terms no worse than the terms granted to domestic carriers by the Parties.

Article 3

The Parties shall consider formation of the Transport union as a gradual process, accounting for agreements entered into in transport cooperation by the States Parties hereto and within the Commonwealth of Independent States.

A mechanism of quadrilateral consultations on the issues arising out of objectives, principles and stages shell be applied to establish the transport union.

Article 4

Establishing and functioning of the Transport union shell be carried out in accordance with long-term and yearly joint plans developed by the Integration Committee of the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic and the Russian Federation (hereinafter referred to as the Integration Committee) together with the Parties’ competent bodies and shell be adopted in accordance with the procedures established by the Parties.

Article 5

Procedures and terms of traffic of cargoes, passengers and luggage by certain means of transport (railway, air, sea, water and truck) between the States Parties hereto and transit through their territories shell be governed by multilateral and bilateral agreements, accounting for the provisions hereof.

Article 6

The Parties’ competent bodies shall agree on positions and coordinate their actions in international transport organizations.

To work out a coordinated position and participate in the activities of these organizations, the Parties’ competent bodies may, if required, create joint working groups.

Article 7

The Parties shell promote the development of direct contacts between transport enterprises and organizations of the states Parties hereto, as well as the establishment of joint ventures and finance and industrial groups in the transport sector.

Article 8

The Parties shell promote cooperation in education and advanced training of personnel: engineers, technicians and transport workers in general trades based on uniform requirements for the level of their education.

Qualification papers issued to the above-stated specialists upon graduation shall be recognized in the territories of the States Parties hereto without additional confirmation.

Article 9

In this Agreement, by competent bodies of the Parties we shall mean:

on behalf of the Republic of Belarus:

for motor, sea, water transport and road facilities – the Ministry of Transport and Communications of the Republic of Belarus,

for railway transport – Belarus Railways,

for air transport – State Committee on Aviation of the Republic of Belarus;

on behalf of the Republic of Kazakhstan:

the Ministry of Transport and Communications of the Republic of Kazakhstan;

on behalf of the Kyrgyz Republic:

the Ministry if Transport and Communications of the Kyrgyz Republic;

on behalf of the Russian Federation:

for motor, sea and water transport – the Ministry of Transport of the Russian Federation,

for railway transport – the Ministry of Railways of the Russian Federation,

for air transport – Federal Aviation Service of Russia,

for road facilities – Federal Road Service of Russia.

Article 10

The Integration Committee is responsible for coordination of activities of the Parties’ competent bodies to ensure fulfillment hereof.

Article 11

This Agreement shall not impair rights and obligations of the Parties under other international treaties to which they are parties, including those entered into between the States Parties hereto.

Article 12

Any dispute arising during performance hereof shall be settled through consultations and negotiations between the Parties’ competent bodies.

If the disputes cannot be resolved through consultations and negotiations, they should be referred, at the request of the competent body, to the Integration Committee.

Article 13

Any amendments hereto shall only be made as agreed by the Parties and be concluded as respective protocols.

Article 14

This Agreement shell be open for accession by other Commonwealth of Independent States member states which share the goals and objectives hereof and are willing to assume obligations arising out of the Treaty between the Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic and the Russian Federation on promotion of integration in economic and humanitarian areas of March 29, 1996, and the Agreement on a customs union.

Article 15

This Agreement shell be made for an indefinite period of time and shall be temporarily effective from the moment of its signing to an extent not contradicting the laws of the Parties and shall come into force from the date of its submission to the depository, which is the Integration Committee, of the notice of accomplishment of internal procedures.

Either Party shall have the right to withdraw from the Agreement by giving not less than six months’ notice thereof to the depository.

Done at Moscow on January 22, 1998, in one copy in Russian. An original copy shall be deposited with the integration Committee, which shall transmit a certified copy thereof to each state Party hereto.

Prime Minister of the Republic of Belarus                   S. Ling

Prime Minister of the Republic of Kazakhstan             N. Balgimbayev

Prime Minister of the Kyrgyz Republic                         A. Dzhumagulov

Chairman of the Government

of the Russian Federation                                              V. Chernomyrdin


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