On the Ratification of the Agreement on the Fundamental Principles of the Monetary Policy of the Member States of the Eurasian Economic Community on the Regulation and Control of Transactions related to the Movement of Capital

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On the Ratification of the Agreement on the Fundamental Principles of the Monetary Policy of the Member States of the Eurasian Economic Community on the Regulation and Control of Transactions related to the Movement of Capital

The Law of the Republic of Kazakhstan dated September 27, 2012 No. 39-V.

To ratify the Agreement on the Fundamental Principles of the Monetary Policy of the Member States of the Eurasian Economic Community on the Regulation and Control of Transactions related to Capital Movements, concluded in St. Petersburg on December 11, 2009.

President

Republic of Kazakhstan

N. NAZARBAYEV

AGREEMENT on the Fundamental Principles of the Monetary Policy of the Member States of the Eurasian Economic Community on the Regulation and Control of Transactions related to the Movement of Capital

The Governments and central (national) banks of the member States of the Eurasian Economic Community, hereinafter referred to as the Parties,

guided by the Treaty on the Establishment of the Eurasian Economic Community of October 10, 2000,

Expressing interest in strengthening mutual trade and investment cooperation among the member States of the Eurasian Economic Community, as well as in developing trade and economic ties between the economic entities of the EurAsEC member States,

Recognizing that the free movement of capital across the borders of the EurAsEC member States is one of the main conditions for the effective allocation of financial and labor resources within the EurAsEC, and also ensures an increase in the pace of economic growth and development of each individual EurAsEC member State,

Recognizing the importance of joint actions towards the creation of a common currency area within the EurAsEC in order to enhance the role of the currencies of the EurAsEC member States in foreign trade and investment transactions and ensure the mutual convertibility of these currencies,

Recognizing that mutually beneficial cooperation without prejudice to the EurAsEC member States requires an integrated and balanced approach to lifting currency restrictions on capital movements, taking into account the individual situation in each EurAsEC member State.,

based on the principles of equality and mutual benefit, taking into account the economic characteristics of each of the EurAsEC member States,

agreed on the following:

Section I. General provisions

Article 1

For the purposes of this Agreement, the following concepts are used:

"currency legislation" means the laws and other regulatory legal acts of the EurAsEC member states that establish the principles and norms of currency regulation and currency control.;

"third countries" - countries that are not EurAsEC member states;

"resident of a EurAsEC Member state" is a resident of one of the EurAsEC member states in accordance with the currency legislation of that state.;

"non-resident of a EurAsEC member state" - a resident of a third country;

"currency restrictions" - legally established restrictions on foreign exchange transactions related to capital movements, expressed in their outright prohibition, limitation of their volume, quantity and timing, currency of payment, as well as the requirement to obtain special permits (licenses) for their conduct, the requirement to reserve part or the entire amount of the transaction, and restrictions related to opening and maintaining accounts in the territories of the EurAsEC member States;

"liberalization measures" are measures that result in the easing and lifting of currency restrictions on currency transactions related to capital movements between residents of the EurAsEC member States, as well as in respect of such currency transactions with non-residents of the EurAsEC member States.

Article 2

This Agreement defines the fundamental principles of the monetary policy pursued by the Parties to regulate and control transactions related to capital movements (hereinafter referred to as currency transactions), aimed at the gradual abolition of restrictions on foreign exchange transactions, as well as a list of currency transactions between residents of the EurAsEC member states, which are not subject to currency restrictions. The provisions of this Agreement do not affect the relations regulated by domestic legislation in the financial and fiscal sphere.

Section II. Fundamental principles of monetary policy for the regulation and control of transactions related to capital movements

Article 3

The Parties will ensure the gradual elimination of currency restrictions that hinder effective economic cooperation in respect of currency transactions between residents of the EurAsEC member States, as well as in respect of currency transactions with non-residents of the EurAsEC member States.

Article 4

The Parties will take measures to exclude the introduction of any currency restrictions, as well as any changes in the legislation of their states that may impose restrictions on foreign exchange transactions.

Article 5

The liberalization measures provided for in Article 9 of this Agreement shall be applied to residents of all EurAsEC member States on an equal basis, without discrimination.

Article 6

Each of the Parties has the right to apply liberalization measures not provided for in Article 9 of this Agreement in respect of an individual EurAsEC member State or third countries without the obligation to extend these liberalization measures to other Parties to this Agreement.

Article 7

The Parties will take measures to develop common approaches and directions of monetary policy in relation to transactions conducted by residents of the EurAsEC member States with non-residents of the EurAsEC member States and the opening of accounts by residents of the EurAsEC member States on the territory of third countries.

Article 8

The obligations set forth in this Agreement do not limit the Parties' capabilities and powers to monitor the legality of foreign exchange transactions (including requirements for the submission of relevant documents that are the basis for transactions), as well as the implementation of other measures aimed at ensuring compliance with domestic legislation.

Section III. Currency transactions and transactions related to the opening of accounts, which are not subject to currency restrictions

Article 9

The Parties shall determine the following list of currency transactions carried out between residents of the EurAsEC member States and transactions related to the opening of accounts by residents of the EurAsEC member States in the territories of the EurAsEC member States, for which currency restrictions provided for by currency legislation are not applied.:

1) settlements and transfers related to deferred payment for exports for up to one year or advance payment (advance payment) for imports for up to one year, carried out directly between suppliers (sellers) and recipients (buyers) of goods (works, services), exclusive rights to the results of intellectual activity;

2) settlements on transactions with property classified as immovable, with the exception of settlements on transactions with aircraft and naval vessels, inland navigation and mixed (river-sea) navigation, as well as with space objects;

3) settlements and transfers related to the acquisition of shares, stakes, deposits (units) in the authorized capital of a legal entity;

4) settlements and transfers related to the acquisition of government securities through the organized markets (exchanges) of the EurAsEC member states;

5) opening of accounts by legal entities intended for the purpose of financing expenses related to the maintenance of branches and representative offices of these legal entities;

6) opening accounts by individuals for the purposes of making payments not related to business activities.

Article 10

After 90 days from the date of entry into force of this Agreement, the Parties undertake to lift restrictions on the following currency transactions carried out between residents of the EurAsEC member states:

1) payments related to the attraction and provision of loans (loans) in cash;

2) settlements and transfers related to the purchase of bonds and other securities (except shares) of commercial organizations resident in the EurAsEC member States through the organized markets (exchanges) of the EurAsEC member States.

Article 11

Each of the Parties, upon notification of the other Parties, has the right, in exceptional cases, to establish currency restrictions for a period not exceeding one year on currency transactions specified in Articles 9 and 10 of this Agreement.

Exceptional cases include:

a) the emergence of circumstances in which the implementation of liberalization measures may lead to a deterioration of the economic and financial situation;

b) the negative development of the situation in the balance of payments, which may result in a decrease in gold and foreign exchange reserves below the acceptable level;

c) the emergence of circumstances in which the implementation of liberalization measures may harm the security interests of their States and hinder the maintenance of public order;

d) sharp fluctuations in the exchange rate of their country's currency.

Notifications on the introduction of currency restrictions are sent by one of the Parties to the other Parties no later than 30 days before the entry into force of such restrictions.

Section IV. Final provisions

Article 12

Coordination of the Parties' actions on the implementation of this Agreement is entrusted to the Council of Heads of Central (National) Banks of the States Parties to the Treaty Establishing the Eurasian Economic Community.

The Council of Heads of Central (National) Banks of the States Parties to the Treaty Establishing the Eurasian Economic Community shall consider at its meetings the fulfillment by the Parties of the obligations assumed in accordance with this Agreement, as well as the reasons for their non-fulfillment, if any.

Article 13

This Agreement does not affect the rights and obligations of the Parties under other international treaties to which the EurAsEC member States are parties.

Article 14

Disputes related to the interpretation and implementation of this Agreement are resolved through consultations and negotiations between the Parties concerned, and if they fail to reach an agreement, the dispute is referred to the EurAsEC Court.

Article 15

By mutual agreement of the Parties, amendments may be made to this Agreement, which are formalized in separate protocols.

Article 16

This Agreement shall enter into force on the date of receipt by the depositary, which is the EurAsEC Integration Committee, of the last written notification that the Parties have completed the internal procedures necessary for its entry into force.

Any Party may withdraw from this Agreement by sending a written notification to the depositary of its intention to withdraw from this Agreement.

The validity of this Agreement for a Party that has declared its intention to withdraw from this Agreement is terminated upon the expiration of 12 months from the date of receipt by the depositary of the written notification.

Article 17

After the entry into force of this Agreement, it is open for accession by any member State of the EurAsEC. The documents on accession to this Agreement shall be deposited with the depositary.

In respect of the acceding States, this Agreement shall enter into force on the date of receipt by the depositary of their instrument of accession.

Done in St. Petersburg on December 11, 2009, in a single original copy in Russian.

The original copy of this Agreement shall be kept by the depositary, who will send a certified copy to each Party.

For the Government

For the National Bank

Republic of Belarus

For the Government

For the National Bank

Republic of Kazakhstan

For the Government

For the National Bank

Of the Kyrgyz Republic

For the Government

For the Central Bank

Of the Russian Federation

For the Government

For the National Bank

Republic of Tajikistan

Tajikistan

I hereby certify that this text is a complete and authentic copy of the Agreement on the Fundamental Principles of Monetary Policy of the Member States of the Eurasian Economic Community on Regulation and Control of Transactions Related to Capital Movements dated December 11, 2009, signed by:

from the Republic of Belarus - Prime Minister of the Republic of Belarus S.S. Sidorsky and Chairman of the National Bank of the Republic of Belarus P.P. Prokopovich;

from the Government of the Republic of Kazakhstan - K.K. Masimov, Prime Minister of the Republic of Kazakhstan, and G.A. Marchenko, Chairman of the National Bank of the Republic of Kazakhstan;

from the Government of the Kyrgyz Republic - by D.T. Usenov, Prime Minister of the Kyrgyz Republic, and S.K. Alybayeva, Member of the Board of the National Bank of the Kyrgyz Republic;

from the Government of the Russian Federation - by Chairman of the Government of the Russian Federation Vladimir Putin and Chairman of the Central Bank of the Russian Federation Sergey Ignatiev;

from the Government of the Republic of Tajikistan - by the Prime Minister of the Republic of Tajikistan A.G. Akilov and Chairman of the National Bank of Tajikistan Sh. Rahimzoda.

The original copy is kept in the Integration Committee of the Eurasian Economic Community.

Director

Legal Department

The Secretariat of the EurAsEC EC

V.S. Knyazev

President

Republic of Kazakhstan

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