On the ratification of the Agreement on the Management of Funds of the Eurasian Fund for Stabilization and Development

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The Law of the Republic of Kazakhstan dated December 28, 2009 No. 232-IV.

 The footnote. Title as amended by the Law of the Republic of Kazakhstan dated 02/25/2016 No. 462-V. The footnote. Throughout the text, the words "Anti-Crisis Fund of the Eurasian Economic Community" and "Anti-Crisis Fund of the EurAsEC" have been replaced by the words "Eurasian Fund for Stabilization and Development" in the appropriate case in accordance with the Law of the Republic of Kazakhstan dated 02/25/2016 No. 462-V.

To ratify the Agreement on the Management of Funds of the Eurasian Fund for Stabilization and Development, signed in Moscow on June 9, 2009.

President of the Republic of Kazakhstan

N. Nazarbayev

AGREEMENT ON THE MANAGEMENT OF FUNDS OF THE EURASIAN FUND FOR STABILIZATION AND DEVELOPMENT

 The Republic of Belarus, the Republic of Kazakhstan, the Kyrgyz Republic, the Russian Federation, the Republic of Tajikistan and the Republic of Armenia, which are the founding States of the Eurasian Fund for Stabilization and Development (hereinafter referred to as the Fund), on the basis of the Agreement on the Establishment of the Eurasian Fund for Stabilization and Development dated June 9, 2009 (hereinafter referred to as the Agreement on the Establishment of the Fund) on the one hand, and

 The Eurasian Development Bank, which is an international organization established in accordance with the Agreement on the Establishment of the Eurasian Development Bank dated January 12, 2006 in order to promote the establishment and development of market economies of the Bank's member States, their economic growth and expansion of trade and economic ties between them (hereinafter referred to as the Bank), on the other hand,

hereinafter referred to as the Parties,

Considering that:

 The Fund's Establishment Agreement stipulates that the Fund's funds are managed by the Fund's Board together with the Fund's funds manager in accordance with the procedure provided for in the Fund's Regulations, which are an integral part of the Fund's Establishment Agreement (hereinafter referred to as the Fund's Regulations), and the Bank is entrusted with the functions of the Fund's funds manager on the basis of an Agreement on the Management of the Fund's Funds concluded between the founding States of the Fund and the Bank;

 In accordance with paragraph 4 of Article 9 of the Bank's Charter, the Bank has the right, by decision of the Bank's Board, to assume obligations to manage special funds formed by the Bank's participants, a group of participants or other organizations to solve tasks corresponding to the goals and functions of the Bank.;

The Bank's Board made a decision on the Bank's commitment to manage the Fund's funds (Minutes of the meeting of the Bank's Board dated June 9, 2009 No. 22),

We have agreed on the following:

Article 1 Subject of the agreement

1. By this Agreement, the Parties establish the procedure for the joint management of the Fund's funds.

 2. The founding States of the Fund, as well as States and international organizations that have joined this Agreement and become participants in the Fund in accordance with the Regulations on the Fund (hereinafter referred to as the Fund Participants), manage the Fund's funds through the Fund's Council, whose powers are determined by the Regulations on the Fund.

The Bank, in accordance with the procedure and on the terms established by this Agreement, assumes the functions of the Fund's Funds Manager, consisting in the disposal and administrative management of the Fund's funds.

3. When performing the functions provided for in this Agreement and concluding the necessary transactions, the Bank indicates that it acts as the Fund's Funds Manager.

When performing actions that do not require written registration, the Bank informs the other party about their commission in this capacity, and makes a note in the written documents "Managing Director of the Eurasian Fund for Stabilization and Development" after its name.

 4. When performing the functions of the Fund's Funds Manager, the Bank acts in accordance with the Fund's documents listed in Article 2 of the Fund's Regulations (hereinafter referred to as the Fund's Documents), guided solely by the interests of the Fund's Participants and the objectives of the Fund's establishment, and makes every possible effort to ensure effective management of the Fund's funds.

5. The Member States of the Fund hereby extend the immunities, privileges and benefits of the Bank provided for in its constituent documents to the Fund's funds and operations of the Fund and guarantee their operation within their jurisdictions.

6. The Bank performs the functions of the secretariat of the Board of the Fund in accordance with the Regulations on the Fund and other applicable documents of the Fund. When performing these functions, the Bank indicates that it acts as the secretariat of the Fund's Board.

The footnote. Article 1 as amended by the Law of the Republic of Kazakhstan dated 02/25/2016 No. 462-V.

Article 2 Disposal of the Fund's funds

1. The Bank is granted the right to dispose of all funds of the Fund, including funds deposited by Fund Participants as monetary contributions to the Fund to accounts in their central (national) banks.

The right of the Bank to dispose of funds deposited by the Fund's Participants as monetary contributions to the Fund to accounts in their central (national) banks is provided for by the Fund's Participants in the relevant bank account agreements concluded with the central (national) banks.

2. The Fund's funds belong to the Fund's Participants. Granting the Bank the right to dispose of the Fund's funds does not entail the transfer of ownership of them to the Bank.

3. As part of the disposal of the Fund's funds, the Bank performs the following legal actions on behalf of and on behalf of the Fund's Participants:

 a) opens and maintains accounts in US dollars and euros for transactions with the Fund's funds in banks approved by the Fund's Council (hereinafter referred to as the Fund's Accounts), performs transactions on these accounts, as well as on accounts with the central (national) banks of the Fund's Participants referred to in Article 1 of this Agreement, in accordance with the Documents The Fund and the terms of this Agreement;

b) transfers to the Fund's Accounts all funds received by the Fund, including:

- contributions, with the exception of monetary contributions to the Fund made by Fund Participants to accounts in their central (national) banks;

- proceeds from the placement (investment) of temporarily unused funds of the Fund;

- proceeds from the provision of funds to the Fund on a refundable basis, including all payments under agreements on the provision of funds to the Fund;

- donations to the Foundation;

- other receipts to the Fund.

 All payments to the Fund made in non-US dollars or euros shall be converted by the Bank into US dollars and/or euros at the exchange rate determined in accordance with paragraph 4 of Article 3 of this Agreement.;

c) submits for payment promissory notes issued by the Fund's Participants on the basis of decisions of the Fund's Council;

d) accepts donations to the Foundation based on decisions of the Foundation's Board;

 e) concludes agreements on the provision of financing from the Fund's funds with recipients of the Fund's funds (hereinafter referred to as Agreements on the Provision of funds) on the basis of decisions of the Fund's Council, ensures that the agreements concluded comply with the requirements provided for by the Regulations on the Fund and decisions of the Fund's Council;

f) provides funds to the Fund under Agreements on the provision of funds to the Fund in accordance with the terms of these Agreements;

g) represents and protects the interests of the Fund's Participants in Agreements on the provision of Funds from the Fund, other transactions involving the use of funds from the Fund, and other matters related to activities carried out within the framework of the Fund;

h) invests and/or deposits funds of the Fund that are not required for use in the near future for the purpose of providing financing, in accordance with the procedure approved by the Board of the Fund;

i) in cases of withdrawal of a Fund Participant from the Fund's Membership, conclude an agreement with him on the term and procedure for payment of such Fund Participant's share in the Fund's funds based on a decision of the Fund's Council, and make payments under such agreements;

j) upon termination of the Fund's operations, transfers to each Fund Participant his share of the Fund's funds in accordance with the procedure and on the terms determined by the Fund's Council;

 k) in the case provided for in paragraph 7 of Article 9 of this Agreement, transfer the funds of the Fund and the assets formed as a result of activities under the disposal of the funds of the Fund to the person(s) appointed by the Board of the Fund in accordance with the procedure determined by the Board of the Fund;

m) performs other necessary factual and legal actions that may be required for the effective management of the Fund's funds, except for actions within the competence of the Fund's Board, the Fund's Expert Council and not delegated to the Fund's Funds Manager.

4. The Bank manages purchases of goods, works and services from the Fund's funds in accordance with the Bank's own rules and procurement procedures and provides for obligations for recipients of the Fund's funds to comply with these procurement procedures in Agreements on the provision of Funds from the Fund to finance interstate investment projects.

5. In an emergency situation, the Bank, by decision of the Board of the Fund, suspends the conclusion of new Agreements on the provision of Fund funds and other transactions with Fund funds until the Board of the Fund considers the situation and takes the necessary measures.

The footnote. Article 2 as amended by the Law of the Republic of Kazakhstan dated 02/25/2016 No. 462-V.

Article 3 Accounting of the Fund's funds

1. The Bank reflects the funds of the Fund transferred to the Bank on a separate balance sheet and maintains independent separate accounting for them.

2. The Bank shall separate the Fund's funds from the Bank's assets (assets, capital and ordinary resources) and from the resources of other special funds established in accordance with the Bank's constituent documents.

3. The Bank accounts for the Fund's funds in accordance with the same principles of accounting (financial) accounting and preparation of accounting (financial) statements that it applies to its own books and accounts.

These principles provide for the maintenance of accounting records and accounts and the preparation of financial statements in accordance with International Financial Reporting Standards, which are consistently applied and appropriately reflect the activities, resources and expenses associated with the activities carried out within the Fund.

4. In all cases where it becomes necessary to determine the exchange rate of any currency in relation to another currency, the exchange rate is determined by the Bank using the same principles as those applied by the Bank for its treasury operations.

Article 4 Administrative management of the Fund's funds

1. As part of the administrative management of the Fund's funds, the Bank performs the following functions:

 a) prepares and submits to the Expert Council of the Fund reasonable proposals on banks for opening Accounts of the Fund;

b) maintains a register of the Fund's Participants and records the number of votes of the Fund's Participants in the Fund's Council;

c) prepares and submits to the Fund's Expert Council for consideration drafts of annual programs of activities financed from the Fund's funds and estimates of administrative expenses of the Fund's Fund Manager for managing the Fund's funds, as well as reports on their implementation;

d) annually prepares and submits to the Fund's Expert Council for consideration and approval an annual financial report on the Fund's operations;

e) informs the Board of the Fund about the fulfillment of the obligations of the founding States of the Fund and the participants of the Fund to contribute to the Fund;

f) prepares and submits to the Fund's Expert Council for consideration drafts of the procedure for providing stabilization loans and sovereign loans from the Fund, the procedure for providing funds from the Fund to finance interstate investment projects, the procedure for placing (investing) temporarily unused funds of the Fund (Investment Declaration);

g) assesses the resource potential of the Fund, and, as necessary, raises the issue of presenting promissory notes to the Board of the Fund in order to make payments.;

 h) considers applications for financing from the Fund's funds, evaluates these applications in order to determine their compliance with the objectives of the Fund's activities, the directions of financing, the procedure and conditions for providing funds to the Fund, which are determined by the Agreement on the Establishment of the Fund, the Regulations on the Fund and decisions of the Board of the Fund, the priority and effectiveness of financing, the degree of preparedness suggestions and other questions, Prepares relevant conclusions and submits them to the Fund's Expert Council for consideration and preparation of recommendations to the Fund's Council.;

i) develops draft Agreements on the provision of funds to the Fund, ensures that the terms of these Agreements comply with the requirements established by the Regulations on the Fund and the decisions of the Board of the Fund on the provision of financing, and, if necessary, develops draft amendments to these Agreements;

j) keeps records of the indebtedness of recipients of the Fund's funds under Agreements on the Provision of the Fund's Funds, informs recipients of the amount of debt and payments due, monitors the fulfillment of debt repayment and servicing obligations, and, if necessary, takes measures to recover overdue debts and other payments due under these Agreements;

k) ensures constant monitoring of the fulfillment of obligations under Agreements on the provision of funds to the Fund, including monitoring the implementation of projects, other operations, monitoring the fulfillment of conditions for the provision of funds to the Fund, provides permanent access to such information to Fund Participants, provides other necessary administrative support for Agreements on the provision of funds to the Fund;

m) organizes an assessment of the effectiveness of projects and operations carried out at the expense of the Fund, and submits the results of such an assessment to the Expert Council of the Fund;

h) submits to the Fund's Expert Council information on violations by recipients of the Fund's funds of the terms of the Fund's Funds Agreements, which entail the possibility of suspension and termination of financing in accordance with the terms of these agreements, in order to make the necessary recommendations to the Fund's Council;

o) if necessary, develop and submit to the Fund's Expert Council for consideration the procedure for determining the shares of Fund Participants in the Fund's funds, as well as draft agreements on the procedure and conditions for the payment of shares;

p) if necessary, develop and submit to the Expert Council of the Fund procedures for termination of operations of the Fund;

 p) if necessary, prepares and submits to the Expert Council of the Fund draft amendments to the Agreement on the Establishment of the Fund, the Regulations on the Fund, this Agreement and other Documents of the Fund.;

c) interacts with the Fund's Participants, representatives of the Fund's Participants in the Fund's Council, members of the Fund's Expert Council, recipients of the Fund's funds, including Governments of recipient States, regional authorities and municipal authorities of recipient States, as well as other public and private organizations, and reports on such interaction to the Fund's Expert Council;

t) ensures that sufficient information about the Fund and its Participants is provided in its publications (annual report, newsletters, etc.), as well as on the course of interaction with recipient States and the media;

y) interacts with the Fund's Expert Council, including submitting to it for examination all issues, documents and materials submitted by the Bank for consideration by the Fund's Council, finalizing them based on the comments of the Fund's Expert Council, and providing necessary additional information and clarifications on these issues, documents and materials at the request of the Fund's Expert Council.;

f) performs other functions that may be required for the effective administrative management of the Fund's funds.

2. The Bank has the right to adopt such internal regulatory documents, rules and procedures corresponding to the Fund's Documents as it deems necessary or appropriate for effective administrative management and disposal of the Fund's funds.

3. Representatives of the Bank attend meetings of the Fund's Board.

 4. As the Fund's Funds Manager, the Bank, if necessary, sends proposals to the Chairman of the Fund's Board on holding extraordinary meetings of the Fund's Board and on including additional issues on the agenda of meetings of the Fund's Board in accordance with the procedure provided for in the Regulations on the Fund.

5. To perform the functions of the Fund's Funds Manager, the Bank employs its staff, third-party experts (consultants) with the necessary skills and knowledge, and other necessary resources.

Article 5 Audit of the activities of the Fund's Funds Manager on the disposal of the Fund's funds

1. In order to verify the accounting and confirm the reliability of the Bank's annual financial statements in terms of its activities as a Fund Manager, the Bank ensures that an independent external audit is conducted annually until the end of the first quarter of the year following the reporting year.

The costs of conducting an external audit are provided for annually in the Budget of administrative expenses of the Fund's Funds Manager and are paid from the Fund's funds.

2. An external audit is conducted in the same manner as is applied to the Bank's annual financial statements. The audit costs are paid from the Fund's funds and are provided for in the Estimate of administrative expenses of the Fund's Funds Manager referred to in paragraph 1 of Article 6 of this Agreement. The Bank independently, in accordance with internal procedures, determines the audit company to carry out the audit.

3. The internal audit is conducted by the Bank's Internal Audit service in accordance with its internal procedures.

4. The Bank shall send to the Fund's Participants an annual report on Fund management activities and an audit report within 5 (five) business days after their receipt. The report and conclusions are reviewed by the Foundation's Expert Council and the Foundation's Board.

5. The Bank publishes an annual report on the Fund's funds management activities and any other reports that it considers appropriate to publish in order to achieve the Fund's goals and perform its functions as a Fund Manager based on the principles of transparency.

Article 6 Payment of expenses and reporting of the Fund's Funds Manager

1. The Bank is compensated for its current expenses for performing the functions of the Fund's Funds Manager and the Fund's Board secretariat from the Fund's funds in accordance with the Estimated administrative expenses of the Fund's Funds Manager for managing the Fund's funds, approved by the Fund's Board.

In addition to paying these expenses, the Fund's Board may assign remuneration to the Bank based on the results of the Fund's financial year in the form of incentives to achieve the planned results of the Fund's Funds Manager's activities. The specified remuneration is paid from the Fund's funds.

2. The Bank maintains documentation fully reflecting its activities as the Fund's Funds Manager and provides the Fund's Board with the necessary reports on its activities as the Fund's Funds Manager.

3. The Bank shall keep all primary accounting documents confirming the expenses referred to in paragraph 1 of this Article and other transactions related to the use of the Fund's funds (including contracts, acts, invoices, invoices, invoices, receipts and other documents) for the entire period of the Fund's operations and five years after its completion and the receipt by the Board of the Fund of an audit opinion for the period in which the last expenditure of the Fund's funds was made.

The footnote. Article 6 as amended by the Law of the Republic of Kazakhstan dated 02/25/2016 No. 462-V.

Article 7 Countering illegal actions

1. The Bank takes appropriate measures to prevent and prevent illegal actions related to the use of the Fund's funds in accordance with international law and national legislation of the Member States of the Fund. The Bank includes references to this requirement in the Agreements on the Provision of Funds to the Fund. At the same time, the recipient of the Fund's funds is required to include relevant provisions in all contracts with suppliers of goods, works and services financed from the Fund's funds.

 2. The Bank brings all cases of illegal actions to the attention of the Fund's Expert Council and the Fund's Council.

Article 8 Liability of the Parties

1. The Parties are mutually responsible for the proper fulfillment of their obligations under this Agreement.

The Parties are released from the specified liability if the non-fulfillment or improper fulfillment of the relevant obligations was caused by force majeure circumstances or actions of the other Party. In this case, the deadline for fulfilling obligations is postponed in proportion to the time during which such circumstances were in effect.

2. If circumstances arise that may lead to the Bank's failure to fulfill its obligations under this Agreement, the Bank shall, within ten days, inform the Fund's Board and the Fund's Expert Council of these circumstances and of the measures taken by the Bank to eliminate these circumstances and fulfill the obligations provided for in this Agreement.

 3. The Bank shall not be liable with its property for obligations assumed by it on behalf of the Fund's Participants in the framework of the Fund's operations, except in cases where, upon acceptance of such obligations, the Bank violated the provisions of the Fund's Documents.

Article 9 Final provisions

 1. This Agreement shall enter into force on the date of receipt by the Depositary, which is the Ministry of Foreign Affairs of the Russian Federation, of the last written notification from the founding States and the Bank on the implementation of internal procedures necessary for its entry into force, but not earlier than the entry into force of the Agreement on the Establishment of the Fund.

This Agreement shall terminate simultaneously with the termination of the Agreement on the Establishment of the Fund, unless it terminates earlier in accordance with the procedure provided for in paragraph 7 of this Article.

2. Amendments to this Agreement are made by agreement of the Parties and are formalized in separate protocols, which enter into force from the date of receipt by the Depositary of the last written notification from the Fund's participants and from the Bank on the implementation of internal procedures necessary for their entry into force. Protocols on amendments after their entry into force are an integral part of this Agreement.

3. Other States and international organizations may join this Agreement on the part of the founding States and Participants of the Fund, provided that they join the Agreement on the Establishment of the Fund in accordance with the procedure provided for in the said Agreement.

The Bank's accession to this Agreement is not allowed.

This Agreement shall enter into force for the States and international organizations acceding to it from the date of receipt by the Depositary of the documents on accession to the Agreement on the Establishment of the Fund and to this Agreement.

4. Reservations to this Agreement are not allowed.

5. Disputes between the Parties arising in connection with the implementation of this Agreement, if possible, are resolved by the Parties through negotiations and consultations.

If such disputes have not been resolved through negotiations and consultations, they are referred by either party to the dispute to an arbitration court consisting of three arbitrators, one of whom is appointed by the Fund's Board, the other by the Bank, and the third by agreement of the appointed arbitrators, or if the arbitrators do not reach a consensus within 6 (six) months after their appointment, the President of the International Court of Justice of the United Nations. When choosing the third arbitrator, the elected arbitrators are guided by the rule that he should not be a citizen of the States and international organizations that are parties to this Agreement, or a representative of the Bank.

When resolving a dispute, the Arbitrators are guided by the UNCITRAL Arbitration Rules, taking into account the public law nature of the dispute. The language of arbitration is Russian.

The arbitrators shall make a decision by a majority vote and their decision shall be final and binding on the parties to the dispute.

6. Any Participant of the Fund has the right to withdraw from this Agreement, provided that they simultaneously withdraw from the Fund's Membership in accordance with the procedure provided for in the Regulations on the Fund. Upon completion of the withdrawal procedure for such a Fund Participant, its participation in this Agreement is terminated automatically.

 7. Either Party has the right to terminate this Agreement, provided that the other Party is notified in writing of its intention to terminate this Agreement. In this case, this Agreement shall terminate upon the transfer by the Bank of the Fund's funds and assets in accordance with the procedure provided for in paragraph 3 (l) of Article 2 of this Agreement and reimbursement to the Bank of expenses incurred before the end of the transfer procedure for performing the functions of the Fund's Funds Manager.

Notifications on behalf of the Party consisting of the founders of the Fund, as well as States and international organizations that have joined this Agreement, are sent to the Bank by the Chairman of the Board of the Fund.

Notifications on behalf of the Bank are sent by its authorized person to the Chairman of the Board of the Fund with a copy to the Secretariat of the Board of the Fund.

The footnote. Article 9 as amended by the Law of the Republic of Kazakhstan dated 02/25/2016 No. 462-V.

This Agreement was signed in Moscow on June 9, 2009 in one original copy in Russian, certified copies of which are sent by the Depositary to each of the signatory States to the Bank.

For the Republic of Belarus

For the Eurasian Bank

For the Republic of Kazakhstan

For the Kyrgyz Republic

For the Russian Federation

For the Republic of Tajikistan

For the Republic of Armenia

I hereby certify that this text is a complete and authentic copy of the original decision of the Interstate Council of the Eurasian Economic Community (at the level of heads of Government) dated June 9, 2009 No. 420, signed on behalf of the Republic of Belarus by Prime Minister of the Republic of Belarus Sidorsky S.S., on behalf of the Government of the Republic of Kazakhstan by Prime Minister of the Republic of Kazakhstan Masimov K.K., from the Government of the Kyrgyz Republic - by the Prime Minister of the Kyrgyz Republic I.V. Chudinov, from the Government of the Russian Federation - V.V. Putin, Chairman of the Government of the Russian Federation, and A.G. Akilov, Prime Minister of the Republic of Tajikistan, on behalf of the Government of the Republic of Tajikistan.

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

Director

Legal Department

V. Knyazev

President

Republic of Kazakhstan

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