Article 8. Railway transport contracts of the Railway Transport Act

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1. The mandatory conditions of transportation contracts are determined by the Civil Code of the Republic of Kazakhstan, this Law and the rules of transportation issued in accordance with them. The parties are free to determine other terms of the contracts of carriage.

2. The relations of the National Railway Company, the operator of locomotive traction in passenger traffic and carriers with government authorities in the organization of passenger transportation are carried out on the terms of contracts in accordance with the legislation of the Republic of Kazakhstan.

2-1. Contracts for subsidizing the interest rate for lending and financial leasing for the purchase of wagons and locomotives are concluded in writing on the basis of a standard contract approved by the authorized body.

2-2. Contracts for long-term subsidization of the costs of the locomotive traction operator in passenger traffic for socially significant messages are concluded in writing. Contracts for long-term subsidization of the carrier's expenses related to the transportation of passengers on socially significant messages are concluded in writing on the basis of a standard contract approved by the authorized body.

In the event of termination in accordance with the legislation of the contract specified in the first paragraph of this paragraph, the authorized body and local executive bodies of regions, cities of republican significance, and the capital may designate a new carrier that transports passengers on socially significant routes and ensures fulfillment of obligations to repay credit funds and pay financial leasing for the purchase of passenger cars.

The procedure for determining the carrier specified in the second paragraph of this paragraph is established by the Rules of the competition on the basis of an open tender for the determination of carriers carrying out railway transportation of passengers on socially significant messages, the costs of which are subject to long-term subsidization from budgetary funds.

2-3. The authorized body and (or) local executive bodies of regions, cities of republican significance, and the capital may conclude agreements on the following obligations:

1) long-term subsidization of the costs of the locomotive traction operator in passenger traffic for socially significant messages in accordance with the legislation of the Republic of Kazakhstan;

2) long-term subsidization of the carrier's expenses related to the transportation of passengers on socially significant messages, in accordance with the legislation of the Republic of Kazakhstan;

3) the definition of the carrier specified in the second part of paragraph 2-2 of this Article;

4) other obligations stipulated by this Law and other legislation of the Republic of Kazakhstan.

2-4. Contracts for subsidizing the coupon rate on the carrier's bonds issued for the development of the mainline railway network and rolling stock of railway transport are concluded in writing on the basis of a standard contract approved by the authorized body.

The coupon interest rate on the carrier's bonds issued for the development of the mainline railway network and rolling stock of railway transport is subsidized in accordance with the procedure determined by the authorized body.

3. The carrier is obliged to comply with the written instructions (decisions) of government agencies on the implementation of particularly important transportation, declared in accordance with their competence. The relevant instructions (decisions) should contain information on the procedure and timing of payments for such transportation.

4. Transportation of passengers, baggage, cargo and baggage by rail in international traffic and transit is carried out in accordance with the legislation of the Republic of Kazakhstan and international treaties of the Republic of Kazakhstan.

Military transportation on the territory of the Republic of Kazakhstan, including transit and outside the Republic of Kazakhstan, carried out under international agreements, agreements (contracts) to which the Republic of Kazakhstan is a party, is performed by a legal entity (forwarder), whose controlling stake belongs to the National Railway Company.

5. The locomotive traction operator provides locomotive traction services on the basis of contracts and in accordance with the procedure established by the authorized body.

The locomotive traction operator uses the services of the locomotive infrastructure operator in accordance with the contract.

The locomotive traction operator is primarily required to provide locomotive traction services to national carriers for special and military transportation.

The Law of the Republic of Kazakhstan dated December 8, 2001 No. 266.

This Law regulates public relations between carriers, participants in the transportation process, government agencies, passengers, senders, recipients, shippers, consignees, and other individuals and legal entities when transporting passengers, baggage, cargo, baggage, and mail by rail.

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