. /.RESTRICTEDWORLD TRADE
ORGANIZATIONWT/ACC/UKR/71
16 August 1999
(99-3458)
Working Party on the
Accession of UkraineOriginal:  English
ACCESSION OF UKRAINE
Agreement between the Cabinet of Ministers of Ukraine and the
Government of the Russian Federation on Production Co-operation
The following information has been received from the Governmental Commission on
Ukraine's Accession to WTO.
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The Cabinet of Ministers of Ukraine and the Government of the Russian Federation
hereinafter referred to as the Parties,
Based on the principles provided by the Agreement on the General Conditions and
Mechanisms of Support for the Development of Production Cooperation of the Enterprises and
Sectors of the Countries – Participants of the Commonwealth of Independent States,23 December 1993,
Understanding the great importance of the further development of economic cooperation
between the two states, trying to ensure favorabl e conditions for the development and fulfillment of
mutual programs, development and improvement of the mutually beneficial production relations
based on cooperation, agree upon the following:
Article 1
The Parties shall contribute to the development of production cooperation between enterprises
of all types of ownership based on direct production relations and their specialization.
Article 2
This Agreement covers the shipment of definite types of goods (services) required for the
fulfillment of joint interstate programs includin g by the mutual consent of the Parties the most
important special components and definite types of products not produced in the consuming countryand utilized for the manufacture of completed products.
Nomenclature and volumes of cooperation shipment including economic agents fulfilling the
shipments shall be determined for the appropriate year by a Protocol between the Parties which form
an integral part of this Agreement.
Article 3
Goods (services) shipped pursuant to cooperative production arrangement and included in the
Protocols to this Agreement shall not be subject to excise or value-added tax.WT/ACC/UKR/71
Page 2
Article 4
Ministries and agencies of both states, if required, may conclude bilateral sector agreements
indicating the respective specializing producers as well as the volume of goods (services) that are
shipped within the framework of the cooperative production arrangements and subject to excise orvalue added tax according to the established procedure.
Article 5
Supply of goods (services) within the framework of this Agreement shall be carried out on the
basis of agreements (contracts) between Ukrainian and Russian economic agents using mutual
settlements in accordance with contractual prices.
Economic agents, who conclude agreements (contracts), are responsible for their execution.
Article 6
Goods supplied under production cooperation within the framework of this Agreement shall
not be re-exported to third countries unless otherwise agreed upon by the Parties. Such arrangement
shall be reflected in the Protocol provided  for in the Article 2 of this Agreement.
Article 7
Disputes arising in connection with the understanding and execution of this Agreement and
the Protocols shall be settled by mutual consultations and negotiations between the Parties.
Article 8
This Agreement may be amended by written consent of the Parties.
Article 9
Execution of the provisions of this Agreement does not violate rights and obligations
emerging from other international agreements of the Parties.
Article 10
This Agreement shall provisionally come into effect on the day of its signing taking into
consideration validity of the Agreement  on the General Conditions and Mechanisms of Support for
the Development of the Production Cooperation of the Enterprises and Sectors of the Countries –
Participants of the Commonwealth of Independent States of 23 December 1993 and shall become
fully effective on the date when the last written notice on the execution by the Parties of the domestic
procedures required for this purpose is received.
This Agreement is concluded for three years and shall be automatically extended for further
three years if neither of the Parties informs the ot her in writing six months prior to the conclusion of
the respective term about its intention to terminate this Agreement.
Executed in the city of Kiev this 24th day of April 1998 in two copies each in Ukrainian and
Russian, both texts are authentically equal.
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