Treaty on Eurasian Economic Union (2014)

on Trade in Services, Incorporation, Activities and Investments I. General Provisions 1. This Protocol has been developed in accordance with Articles 65-69 of the Treaty on the Eurasian Economic Union (hereinafter "the Treaty") and determines the legal basis for regulating trade in services, incorporation, activities and investments in the Member States. 2. The provisions of this Protocol shall apply to any and all measures taken by the Member States with regard to the supply and receipt of services, as well as incorporation, activities and investments. Specific features of legal relations arising in connection with the trade in telecommunication services shall be in accordance with Annex 1 to this Protocol. "Horizontal" restrictions maintained by the Member States in respect of all sectors and activities shall be determined in accordance with Annex 2 to this Protocol. Individual national lists of restrictions, exceptions, additional requirements and conditions (hereinafter "the national lists"), provided for by paragraphs 15-17, 23, 26, 28, 31, 33 and 35 of this Protocol, shall be approved by the Supreme Council. 3. The provisions of this Protocol shall apply to created, acquired, controlled juridical persons of the Member States, opened branches, representative offices, registered individual entrepreneurs still existing on the effective date of the Treaty, as well as to created, acquired, controlled juridical persons of the Member States, opened branches, representative offices, registered individual entrepreneurs after the effective date of the Treaty. Notwithstanding the provisions of paragraphs 15-17, 21, 24, 27, 30 and 32 of this Protocol, the Member States shall reserve the right to adopt and enforce any measures with regard to new services, that is, those that did not exist on the effective date of the Treaty. In the case of adoption or enforcement of a measure that affects a new service and is incompatible with the provisions of the above paragraphs, the respective Member State shall inform all other Member States and the Commission of such a measure no later than 1 month from the date of its adoption or enforcement, whichever comes first. Corresponding changes in the national list of that Member State shall be approved by decision of the Supreme Council. 4. As regards the cases of supply of services specified in the second and third indents of sub-paragraph 22 of paragraph 6 of this Protocol, the provisions of this Protocol shall not apply to the rights of air transportation and services directly related to the rights of transportation, except for the repairs and maintenance of aircraft, supply and marketing of air transportation services and services of computer booking systems. 5. The Member States shall not use mitigation of any requirements provided by their legislation for the protection of human life and health, the environment, and national security, as well as labour standards, as a mechanism to attract persons of other Member States and third states to incorporate on the territories of Member States. II. Terms and Definitions 6. The terms used in this Protocol shall have the following meanings: 1) "recipient state" means a Member State on the territory of which the investments are made by investors from other Member States; 2) "activities" means business and other activities (including trade in services and manufacture of goods) conducted by juridical persons, branches, representative offices or individual entrepreneurs listed in indents two to six of sub-paragraph 24 of this paragraph; 3) "investment activities" means possession, use and/or disposal of investments; 4) "income" means funds generated as a result of investment, in particular, dividends, interest and royalties, fees and other remunerations; 5) "legislation of a Member State" means legislation and other regulatory legal acts of a Member State; 6) "applicant" means a person of a Member State having applied for a permit to the competent authority of that or another Member State; 7) "investments" means tangible and intangible assets invested by an investor of a Member State into subjects of entrepreneurial activity on the territory of another Member State in accordance with the legislation of the latter, including: funds (cash), securities and other property; rights to engage in entrepreneurial activities granted under the legislation of the Member States or under a contract, including, in particular, the right to exploration, development, production and exploitation of natural resources; property rights and other rights having monetary value; 8) "investor of a Member State" means any person of a Member State making investments on the territory of another Member State in accordance with the legislation of the latter; 9) "competent authority" means any authority or organisation exercising control, authorisation or other regulatory functions with respect to matters covered by this Protocol under the powers delegated by the Member State, in particular, administrative authorities, courts, professional and other associations; 10) "person of a Member State" means any natural person or juridical person of a Member State; 11) "measure of a Member State" means the legislation of a Member State, as well as any decision, action or omission of an authority or official of that Member State adopted or applied at any level of state or local authorities or organisations in the exercise of the powers delegated thereto by such authorities. In the case of adoption (publication) by the authority of a Member State of an official non-binding document, this recommendation may be deemed a measure of the Member State applied for the purposes of this Protocol if it is proven that, in practice, the recommendation is observed by a predominant portion of its subjects (state, regional and/or municipal authorities, non-governmental authorities, as well as persons of the Member State, persons of other Member States, and persons of any third state); 12) "service recipient" means any person of a Member State a service is supplied to or intending to use a service; 13) "service supplier" means any person of a Member State supplying a service; 14) "representative office" means a separate division of a juridical person located outside of its location that represents and protects the interests of the juridical person; 15) "permit" means confirmation by a competent authority, as provided for by the legislation of a Member State and based on an applicant's request, of the rights of the applicant to engage in certain activities or perform certain actions, including by its introduction into the registry and issuance of an official document (license, approval, conclusion, diploma, certificate of attendance, certificates, etc.). A permit may be granted on the basis of competitive selection; 16) "authorisation procedures" means a set of procedures implemented by competent authorities in accordance with the legislation of a Member State relating to the issuance and re-issuance of permits and duplicates thereof, termination, suspension, resumption or extension and withdrawal (cancellation) of permits, refusal to grant permits, as well as review of all respective claims; 17) "authorisation requirements" means a set of standards and/or requirements (including licensing and qualification requirements) to the applicant, permit holder and/or a service supplied or activity undertaken under the relevant legislation of a Member State, aimed at ensuring the fulfilment of regulation objectives determined by the legislation of the Member State. With regard to permits for activities, authorisation requirements may be aimed at, among other things, ensuring the competence and ability of the applicant to carry out trade in services and other activities in accordance with the legislation of the Member State; 18) "treatment" means a set of measures of the Member States; 19) "service sector": for the purposes of Annex 2 to this Protocol and of the lists approved by the Supreme Council, one, several or all sub-sectors of a certain service; in other cases - an entire service sector, including all sub-sectors; 20) "territory of a Member State" means the territory of a Member State, as well as its exclusive economic area and the continental shelf, in respect of which it exercises sovereign rights and jurisdiction in accordance with the international law and its legislation; 21) "economic feasibility test" means determining grounds for issuing permits based on the economic feasibility or market demand, assessment of the potential or existing business or economic impact of respective activities or assessment of compliance of the activities with economic planning objectives set by the competent authority. This term shall not include any conditions associated with non-economic planning and based on the grounds of public interest, such as social policy, implementation of socio-economic development programs approved by local authorities within their competence, or protection of the urban environment, including implementation of urban development plans; 22) "trade in services" means supply of services, including manufacture, distribution, marketing, sale and delivery of services, conducted in the following ways: from the territory of one Member State to the territory of any other Member State; on the territory of one Member State by a person of this Member State to a service recipient of another Member State; by a service supplier of one Member State through its incorporation on the territory of another Member State; by a service supplier of one Member State through the presence of natural persons of that Member State on the territory of another Member State; 23) "third state" means a state that is not a Member State; 24) "incorporation": creation and/or acquisition of a juridical person (participation in the capital of a created or incorporated juridical person) with any organisational legal form and form of ownership provided for by the legislation of the Member State on the territory of which such juridical person is created or incorporated; acquisition of control over a juridical person of a Member State through obtaining of an opportunity to, either directly or via third persons, determine decisions to be adopted by such juridical person, including through the management of votes granted by voting shares (stakes) and participation in the board of directors (supervisory board) and other management authorities of such juridical person; opening of a branch; opening of a representative office; registration as an individual entrepreneur. Incorporation shall be carried out, among other things, for the purposes of trade in services and/or manufacture of goods; 25) "natural person of a Member State" means a national of a Member State in accordance with the legislation of the Member State; 26) "branch" means a separate division of a juridical person incorporated outside of its location and performing all of its functions, or part thereof, including the function of a representation; 27) "juridical person of a Member State" means an organisation with any organisational legal form, created or incorporated on the territory of a Member State in accordance with the legislation of that Member State. 7. For the purposes of this Protocol, the service sectors shall be identified and classified based on the Central Products Classification approved by the United Nations Statistical Commission. III. Payments and Transfers 8. Except for the cases provided for in paragraphs 11-14 of this Protocol, each Member State shall cancel all effective and shall not introduce new restrictions on transfers and payments in connection with trade in services, incorporation, activities and investments, in particular with regard to: 1) income; 2) funds transferred in repayment of loans and credits recognised by the Member States as investments; 3) funds received by an investor in connection with a partial or complete liquidation of a profit organisation or sale of investments; 4) funds received by an investor in recovery of damages in accordance with paragraph 77 of this Protocol and compensations referred to in paragraphs 79-81 of this Protocol; 5) salaries and other remuneration received by investors and nationals of other Member States allowed to perform investment-related activities on the territory of the recipient state. 9. Nothing in this section shall affect the rights and obligations of any Member State arising out of its membership in the International Monetary Fund, including the rights and obligations regarding any currency transactions control measures, provided that such measures of the Member States comply with the Articles of Agreement of the International Monetary Fund of July 22, 1944, and/or provided that the Member State does not impose restrictions on transfers and payments that are incompatible with its obligations under this Protocol regarding such transactions, except as specified in paragraphs 11-14 of this Protocol or in case of restrictions imposed on request from the International Monetary Fund. 10. Transfers under paragraph 8 of this Protocol may be made in any freely convertible currency. Funds shall be converted without undue delay, at the exchange rate applicable on the territory of the Member State on the date of the transfer of funds and payments. IV. Restrictions on Payments and Transfers 11. In the case of deterioration of the balance of payments, a significant reduction in foreign exchange reserves, sharp fluctuations of the national currency exchange rate or a threat thereof, a Member State may impose restrictions on transfers and payments provided for in paragraph 8 of this Protocol. 12. The restrictions referred to in paragraph 11 of this Protocol: 1) shall not create discrimination between the Member States; 2) shall comply with the Articles of Agreement of the International Monetary Fund of July 22, 1944; 3) shall not cause excessive damage to the commercial, economic and financial interests of any other Member State; 4) shall not be more burdensome than required to overcome the circumstances referred to in paragraph 11 of this Protocol; 5) shall be temporary and be phased out with the disappearance of the circumstances referred to in paragraph 11 of this Protocol. 13. When determining the sphere of the restrictions specified in paragraph 11 of this Protocol, the Member States may give priority to the supply of those goods or services that are more critical to their economic or development programs. However, such restrictions shall not be imposed or maintained for the protection of a certain economic sector. 14. Any restrictions imposed or maintained by the Member States in accordance with paragraph 11 of this Protocol or any changes thereto shall be immediately communicated to all other Member States. V. State Participation 15. The treatment accorded by each Member State to persons of another Member State on its territory with regard to participation in privatisation shall be no less favourable than that accorded to persons of its Member State, subject to the restrictions, exceptions and additional requirements and conditions specified in the national lists or Annex 2 to this Protocol. 16. If any juridical persons operating on the territory of a Member State have participation of that Member State in their capital or are controlled by the Member State, the Member State shall ensure that these persons: 1) operate for commercial considerations and participate in relations governed by this Protocol: on the basis of the principle of equality with the other participants of these relations; on the basis of the principle of non-discrimination of other participants of these relations according to their nationality, place of registration (incorporation), organisational legal form or form of ownership; 2) are not granted any rights, privileges or obligations solely because of the participation of the Member State in their capital or control of that Member State over these persons. These requirements shall not apply when the activities of such juridical persons are aimed at solving problems of the social policy of the Member State, as well as to all restrictions and conditions specified in the national lists or Annex 2 to this Protocol. 17. The provisions of paragraph 16 of this Protocol shall also apply to juridical persons having formal or de facto exclusive rights or special privileges, except for juridical persons with rights and/or privileges included, pursuant to sub-paragraphs 2 and 6 of paragraph 30 of this Protocol, in the national lists or Annex 2 to this Protocol, and juridical persons the activities of which are governed by Section XIX of the Treaty. 18. Each Member State shall ensure that all state or local authorities of that Member State at any level are independent of and unaccountable to any person engaged in business activities in the economic sector regulated within the competence of the respective authority, without prejudice to the provisions of Article 69 of the Treaty. Measures of that Member State, including decisions of the above authority and rules and procedures determined and applied thereby, shall be unbiased and objective in relation to all persons engaged in economic activities. 19. In accordance with the obligations arising from Section XIX of the Treaty and notwithstanding the provisions of paragraph 30 of this Protocol, each Member State may retain in its territory any juridical persons that are the subjects of natural monopolies. A Member State retaining such juridical persons on its territory shall ensure that these juridical persons act in a manner consistent with the obligations of the Member State arising from Section XIX of the Treaty. 20. Should the juridical persons of a Member State referred to in paragraph 19 of this Protocol compete directly or via controlled juridical persons outside the sphere of their monopoly rights with juridical persons of other Member States, the first Member State shall ensure that such juridical persons do not abuse their monopoly position acting on the territory of the first Member State in a manner inconsistent with the obligations of the first Member State arising out of this Protocol. VI. Trade in Services, Incorporation and Activities 1. National Treatment for Trade in Services, Incorporation and Activities 21. The treatment accorded by each Member State in respect of services, service suppliers and service recipients of another Member State regarding all measures affecting trade in services shall be no less favourable than that accorded under the same (similar) circumstances to its own same (similar) services, service suppliers and service recipients. 22. Each Member State may perform the obligations referred to in paragraph 21 of this Protocol through the provision of formally similar or formally different treatment to services, suppliers and recipients of services of any other Member State as compared to the treatment accorded by that Member State to its own same (similar) services, or suppliers or recipients of services. Formally similar or formally different treatment shall be considered less favourable if it modifies the terms of competition in favour of services, service suppliers and/or service recipients of that Member State as compared to the same (similar) services, service suppliers and/or recipients of any other Member State. 23. Notwithstanding the provisions of paragraph 21 of this Protocol, each Member State may impose certain restrictions and conditions specified in the national lists or Annex 2 to this Protocol in respect of services, service suppliers and service recipients of another Member State. 24. The treatment accorded by each Member State to persons of any other Member State in respect of incorporation and activities shall be no less favourable than that accorded under the same (similar) circumstances to its own persons on its territory. 25. Each Member State may perform the obligations referred to in paragraph 24 of this Protocol through the provision of formally similar or formally different treatment to persons of any other Member State as compared to the treatment accorded by that Member State to its own persons. The treatment shall be deemed less favourable if it modifies the terms of competition in favour of persons of that Member State as compared to persons of any other Member State. 26. Notwithstanding the provisions of paragraph 24 of this Protocol, each Member State may impose certain restrictions and conditions specified in the national lists or Annex 2 to this Protocol in respect of incorporation or activities of persons of another Member State. 2. Most Favoured Nation Treatment for Trade in Services, Incorporation and Activities 27. The treatment accorded by each Member State, under the same (similar) circumstances, with regard to services, service suppliers and recipients of any other Member State, shall be no less favourable than that accorded to the same (similar) services, service suppliers and recipients of third states. 28. Notwithstanding the provisions of paragraph 27 of this Protocol, each Member State may impose certain exceptions specified in the national list or Annex 2 to this Protocol in respect of services, service suppliers and service recipients of any other Member State. 29. The treatment accorded by each Member State, under the same (similar) circumstances, to persons of any other Member State and persons incorporated thereby in respect of their incorporation and activities in its territory shall be no less favourable than that accorded to persons of third states and persons incorporated thereby. 3. Quantitative and Investment Measures 30. The Member States shall not introduce or apply to persons of any Member State any restrictions with respect to trade in services, incorporation and activities regarding: 1) the number of service suppliers in the form of quota, economic feasibility tests or any other quantitative form; 2) the number of juridical persons, branches or representative offices created, acquired and/or controlled and individual entrepreneurs registered; 3) transactions of any service supplier in the form of quota, economic feasibility tests or any other quantitative form; 4) transactions of juridical persons, branches or representative offices created, acquired and/or controlled and individual entrepreneurs registered, conducted in the course of their activities in the form of quotas, economic feasibility tests or any other quantitative form; 5) forms of incorporation, including the organisational legal form of a juridical person; 6) acquired shares in the authorised capital of a juridical person or the degree of control over a juridical person; 7) limitations of the total number of natural persons that may be employed in a particular service sector or the number of natural persons that may be employed by a service supplier and are required and directly relevant to the supply of certain services in the form of numerical quotas or economic feasibility tests. 31. In respect of service suppliers and recipients of any Member State, each Member State may impose and apply the restrictions specified in paragraph 30 of this Protocol, if such restrictions are specified in the national list or Annex 2 to this Protocol. 32. No Member State shall be entitled to introduce or apply the following additional requirements to persons of the Member States and persons incorporated thereby as conditions for their incorporation and/or activities: 1) on exportation of all manufactured goods or services or any part thereof; 2) on importation of goods or services; 3) on the purchase or use of goods or services originating from a Member State; 4) any requirements restricting the sale of goods or supply of services on the territory of that Member State, the import of goods into the territory of that Member State or export of goods from its territory that are based on the volume of goods manufactured (service supplied) or on the use of local goods or services or restrict access to foreign exchange payable in connection with transactions referred to in this sub-paragraph; 5) on the transfer of technology, know-how and other information of commercial value, except in the case of their transfer pursuant to a court order or an order issued by a authority in the field of protection of competition, subject to the rules of the competition policy determined by other international treaties of the Member States. 33. Each Member State may introduce and apply to persons of other Member States any additional requirements referred to in paragraph 32 of this Protocol, if such restrictions are provided for by the national list or Annex 2 to this Protocol. 34. The requirements specified in paragraph 32 of this Protocol shall not be grounds for obtaining any preferences by persons of any Member State in connection with their incorporation or activities. 4. Migration of Natural Persons 35. Except for the restrictions and requirements specified in the national list or Annex 2 to this Protocol, subject to the provisions in Section XXVI of the Treaty, no Member State shall apply or impose in its territory any restrictions on employment of workers for activities of juridical persons, branches or representative offices created, acquired and/or controlled and individual entrepreneurs registered. 36. The provisions of paragraph 35 of this Protocol shall not apply with respect to the requirements for education, experience, qualifications, and professional qualities, if their application does entail actual discrimination against workers on the ground of their national origin. 37. Subject to the provisions of Section XXVI of the Treaty, no Member State shall apply or impose restrictions on natural persons involved in trade in services in the procedure specified in the fifth indent of subparagraph 22 of paragraph 6 of this Protocol and present on the territory of that Member State. 5. Establishment of a Common Market of Services 38. For the purposes of this section, the common market of services shall refer to such a state of the market of services of a particular sector when each Member State grants to persons of any other Member State the right to: 1) supply and receive services under the conditions specified in paragraphs 21, 24, 27, 29, 30 and 32 of this Protocol, without any restrictions, exceptions and additional requirements, except for the conditions and restrictions provided for in Annex 2 to this Protocol; 2) supply services without additional incorporation of a juridical person; 3) supply services on the basis of permit for the supply of services obtained by the service supplier on the territory of its Member State; 4) recognize professional qualifications of the staff of the service supplier. 39. The rules of the common market of services shall apply to the Member States on a reciprocal basis. 40. The common market of services within the Union shall operate in the service sectors approved by the Supreme Council on the basis of proposals agreed by the Member States and the Commission. 41. The Member States shall seek to spread, on a reciprocal basis, the rules of the common market of services onto the maximum number of service sectors, including through gradual elimination of exceptions and restrictions provided for by national lists. 42. The procedure and the stages of establishment of the common market of services shall be determined for individual sectors in liberalisation plans developed on the basis of proposals agreed by the Member States and the Commission to be approved by the Supreme Council (hereinafter "the liberalisation plans"). 43. Liberalisation plans may provide for certain Member States extended deadlines for the liberalisation of individual service sectors, which shall not prevent other Member States from establishment of the common market in these sectors on the basis of reciprocity. 44. The provisions of subsections 1-4 of this section shall apply to sectors not regulated by the rules of the common market of services. 6. Relations with Third States on Trade in Services, Incorporation, Activities and Investments 45. Nothing in this Protocol shall preclude the Member States from concluding with third states international treaties on economic integration in compliance with the requirements of paragraph 46 of this Protocol. Each Member State having concluded such a treaty on economic integration shall make concessions in respect of the Member States under the same (similar) conditions as granted under the international treaty. Concessions in this paragraph refer to cancellation by the Member State of one or more restrictions provided for by its national list. 46. For the purposes of this Protocol, international treaties on economic integration between a Member State and a third state shall refer to all international treaties meeting the following criteria: 1) covering a significant number of service sectors and under no circumstances knowingly a priori preclude any mode of supply of services or aspects of incorporation and activities; 2) focusing on the elimination of existing and prohibition of new discriminatory measures; 3) aimed at liberalising the trade in services, incorporation and activities. These international treaties shall be intended to facilitate trade in services and the conditions of incorporation and activities applied between parties thereto. Such treaty shall not create for any third state an increase in the overall number of barriers to trade in services in certain sectors or subsectors as compared to the situation existing prior to the conclusion of such treaty. 47. A Member State having concluded with a third state an international treaty on economic integration shall be obliged to inform other Member States thereof within 1 month from its signing date. 48. The Member States shall be free to determine their foreign trade policy in relation to trade in services, incorporation, activities and investments with third states. 7. Additional Rights of Service Recipients 49. Subject to the provisions of Section XV of the Treaty, each Member State shall not impose any requirements or special conditions for a service recipient restricting its rights to obtain, use or pay for the services rendered (provided) by a service supplier of another Member State, including with regard to the selection of a service supplier or mandatory permits to be obtained from competent authorities. 50. Subject to the provisions of Section XV of the Treaty, each Member State shall ensure non-application with respect to service recipients of any discriminatory requirements or special conditions on the grounds of their nationality, place of residence or place of incorporation or activities. 51. Each Member State shall oblige: 1) service suppliers to provide the necessary information to service recipients in accordance with the Treaty and the legislation of the Member State; 2) competent authorities to take measures to protect the rights and legitimate interests of service recipients. 52. Nothing in this Protocol shall affect the right of a Member State to take any measures required for the implementation of its social policies, including for ensuring pension and social support of its population. All issues regarding consumer access to services covered by Sections XIX, XX and XXI of the Treaty and the treatment accorded to consumers of such services shall be governed by the provisions of these Sections, respectively. 8. Mutual Recognition of Permits and Professional Qualifications 53. Recognition of permits for the supply of services in sectors for which the liberalisation plans are implemented shall be recognised after the taking measures referred to in paragraphs 54 and/or 55 of this Protocol. 54. On the basis of mutual consultations (including on the interdepartmental level), the Member States may decide on the mutual recognition of permits for the supply of services in specific sectors upon achievement of substantial equivalence of regulation in these sectors. 55. Liberalisation plans shall ensure: 1) gradual convergence of mechanisms ensuring admission to activities (including authorisation requirements and procedures) through the harmonisation of legislation of the Member States, setting sector-specific completion dates of such harmonisation; 2) the establishment of administrative cooperation mechanisms in accordance with Article 68 of the Treaty; 3) recognition of professional qualifications of employees of service suppliers. 56. When professional examinations are required prior to admission to the implementation of professional services, each Member State shall ensure a non-discriminatory procedure for passing such professional examinations. 9. Internal Regulation in Trade in Services, Incorporation and/or Activities 57. Each Member State shall ensure that all measures of that Member State affecting trade in services, incorporation and activities are applied in a reasonable, objective and impartial manner. 58. Each Member State shall maintain and create as soon as practicable all judicial, arbitration or administrative authorities or procedures that shall, on request of persons of other Member States the interests of which have been affected, promptly review respective issues and adopt reasonable measures to alter administrative decisions affecting trade in services, incorporation and activities. In cases where such procedures are not independent of the authority entrusted with the respective administrative decision, the Member State shall ensure that the procedures guarantee an objective and impartial review. 59. The provisions of paragraph 58 of this Protocol shall not require a Member State to establish authorities or procedures referred to in paragraph 58 of this Protocol when it is inconsistent with its constitutional procedure or the nature of its judicial system. 60. Should it be required to obtain a permit for trade in services, incorporation and/or activities, the competent authorities of the Member State shall, within a reasonable period of time after the submission of the respective application deemed executed in accordance with the legislation of the Member State and applicable regulation provisions, inform the applicant of the review of the application and the results obtained thereupon. The above application shall not be deemed duly arranged until all documents and/or information have been received as specified in the legislation of the Member State. In any case, the applicant shall be given the opportunity to make technical corrections in the application. At the request of the applicant, competent authorities of the Member State shall provide information about the progress of application processing without undue delay. 61. In order to ensure that authorisation requirements and procedures do not constitute unnecessary barriers to trade in services, incorporation and activities, the Commission shall, in agreement with the Member States, develop respective rules to be approved by the Supreme Council. These rules shall be intended to ensure that such authorisation requirements and procedures, among other things: 1) are based on objective and overt criteria such as competence and the ability to conduct trade in services and activities; 2) are not more burdensome than required to ensure the security of ongoing activities, as well as the safety and quality of services supplied; 3) do not restrict trade in services, incorporation and/or activities. 62. The Member States shall not apply any authorisation requirements and procedures that invalidate or reduce benefits and: 1) do not meet the criteria specified in paragraph 61 of this Protocol; 2) have not been determined by the legislation of the Member State and applied by the Member State as on the signing date of the Treaty. 63. When confirming fulfilment by a Member State of the obligations referred to in paragraph 62 of this Protocol, international standards of international organisations open for membership to all the Member States shall be taken into account. 64. If a Member State applies authorisation requirements and procedures in relation to trade in services, incorporation and/or activities, it shall ensure that: 1) the names of competent authorities issuing authorisations have been published or otherwise communicated to the general public; 2) all authorisation requirements and procedures have been determined in the legislation of the Member State and any act determining or applying any authorisation procedures and requirements has been published prior to its effective date (entry into force); 3) competent authorities have decided to issue or refuse to issue a permit within a reasonable period of time specified in the legislation of the Member State and generally equal to up to 30 working days from the date of receipt (arrival) of the application deemed arranged in accordance with the legislation of the Member State. This period shall be determined based on the minimum time required to obtain and process all documents and/or information necessary for the implementation of the authorisation procedure; 4) any fees charged in connection with the submission and consideration of the application, except for the fees charged for the right to engage in activities, did not constitute a restriction on trade in services, incorporation or activities and were based on the expenses of the competent authority incurred with regard to the consideration of the application and issuance of the permit; 5) upon expiration of the period referred to in sub-paragraph 3 of this paragraph and at the request of the applicant, the competent authority of the Member State informed the applicant in accordance with paragraph 60 of this Protocol of the status of its application, indicating whether the application was deemed duly executed. In any case, the applicant shall be granted the rights provided for in paragraphs 57, 58, 60, 62 and 64 of this Protocol; 6) upon written request of an applicant whose application was rejected, the competent authority that rejected the application informed the applicant in writing of the reasons for this rejection. This provision shall not be construed to require the competent authority to disclose information if it prevents due enforcement of the law or is otherwise contrary to the public interest or critical security interests of the Member State; 7) in case of rejection of an application by the competent authority due to its improper execution, the applicant was able to reapply; 8) permits issued for the supply of services were effective on the entire territory of the Member State specified in such permits. VII. Investments 1. General Provisions 65. The provisions of this section shall apply to all investments made by investors of the Member States on the territory of another Member State starting from December 16, 1991. 66. Incorporation within the meaning of sub-paragraph 24 of paragraph 2 of this Protocol shall constitute a form of investment. All provisions of this Protocol, except for the provisions of paragraphs 69-74 of this Protocol, shall apply to such investments. 67. Changes in investment methods, as well as in forms of investment or reinvestment, shall not affect their qualification as investments provided that such changes do not contradict the legislation of the recipient state. 2. Legal Treatment and Protection of Investments 68. Each Member State shall ensure on its territory fair and equitable treatment to investments and investment-related activities conducted by investors of other Member States. 69. The treatment specified in paragraph 68 of this Protocol shall not be less favourable than the treatment accorded by the Member State in respect of investments and investment-related activities conducted by its domestic (national) investors. 70. The treatment accorded by each Member State, under the same (similar) circumstances, to investors of any other Member State, their investments and investment-related activities shall be no less favourable than the treatment accorded to investors of any third state, their investments and activities related to such investments. 71. The treatments provided for in paragraphs 69 and 70 of this Protocol shall be accorded by the Member States as selected by the investor, depending on the most favourable treatment. 72. Each Member State shall create favourable conditions for investment in its territory to investors of other Member States and shall enable such investments in accordance with its legislation. 73. Each Member State shall, in accordance with its legislation, reserve the right to restrict the activities of investors of other Member States, as well as to apply and introduce other exceptions to the national treatment referred to in paragraph 69 of this Protocol. 74. The provisions of paragraph 70 of this Protocol shall not be construed as obliging a Member State to extend to investments and related activities of investors of other Member States the benefits of any treatment, preferences or privileges that are available or may be made available in the future to that Member State under international treaties on the avoidance of double taxation or other agreements on taxation, as well as the treaties referred to in paragraph 46 of this Protocol. 75. Each recipient state shall guarantee the following to investors of other Member States, upon completion by the latter of their obligations under all tax-related and other legislation of the recipient state: 1) the right to use and dispose of the income generated as a result of investments for any purpose not prohibited by the legislation of the recipient state; 2) the right to use and dispose of the income generated as a result of investments for any purpose not prohibited by the legislation of the recipient state; 3) the right to freely transfer investment-related funds (cash) and payments referred to in paragraph 8 of this Protocol to any country, at the discretion of the investor. 76. Each Member State shall guarantee and ensure on its territory, in accordance with its legislation, the protection of investments of investors of other Member States. 3. Indemnity and Guarantees of Investors 77. Investors shall be entitled to indemnification for damages caused to their investments as a result of civil unrest, hostilities, revolutions, insurrection, state of emergency or other similar circumstances on the territory of a Member State. 78. These investors shall be accorded treatment no less favourable than that accorded by the recipient state to its domestic investors or to investors of third states in respect of measures taken by the Member State in relation to compensation for such damage, depending on the most favourable treatment for the investor. 4. Guarantees of Rights of Investors in Expropriation 79. Investments of investors of a Member State made on the territory of another Member State shall not be subject to direct or indirect expropriation, nationalisation and other measures with consequences equivalent to those of expropriation or nationalisation (hereinafter "expropriation"), except in cases where such measures are taken for the public benefit in the procedure determined by the legislation of the recipient state, are not discriminatory and involve prompt and adequate compensation. 80. The compensation referred to in paragraph 79 of this Protocol shall correspond to the market value of investments expropriated from investors on the date immediately preceding the date of their actual expropriation or the date when it becomes known about the upcoming expropriation. 81. The compensation referred to in paragraph 79 of this Protocol shall be paid without delay, within the period provided for by the legislation of the recipient state, but not later than within 3 months from the date of expropriation and shall be freely transferable abroad from the territory of the recipient state in a freely convertible currency. In case of a delayed payment of compensation, interest shall be accrued in the period from the date of expropriation till the date of actual payment of the compensation, to be calculated at the domestic interbank market rate for actually provided loans in US dollars for up to 6 months, but not below the rate of LIBOR, or in the procedure determined by agreement between the investor and the Member State. 5. Transfer of Rights of Investor 82. A Member State or its authorised authority having completed payments to an investor of their state based on the guarantees of protection against non-commercial risks in connection with an investment of such investor on the territory of a recipient state may exercise the rights of such investor under subrogation to the same extent as the investor. 83. The rights referred to in paragraph 82 of this Protocol shall be exercised in accordance with the legislation of the recipient state, but without prejudice to the provisions of paragraphs 21, 24, 27, 29, 30 and 32 of this Protocol. 6. Procedure for Settlement of Investment Disputes 84. All disputes between a recipient state and an investor of another Member State arising from or in connection with an investment of that investor on the territory of the recipient state, including disputes regarding the size, terms or order of payment of the amounts received as compensation of damages pursuant to paragraph 77 of this Protocol and the compensation provided for in paragraphs 79-81 of this Protocol, or the order of payment and transfer of funds provided for in paragraph 8 of this Protocol, shall be, where possible, resolved through negotiations. 85. If a dispute may not be resolved through negotiations within 6 months from the date of a written notification of any of the parties to the dispute on negotiations, it may be referred to the following, at investor's option: 1) a court of the recipient state duly competent to consider relevant disputes; 2) international commercial arbitration court at the Chamber of Commerce of any state as may be agreed by the parties to the dispute; 3) ad hoc arbitration court, which, unless the parties to the dispute agree otherwise, shall be established and act in accordance with the Rules of Arbitration of the United Nations Commission on International Trade Law (UNCITRAL); 4) the International Centre for Settlement of Investment Disputes established pursuant to the Convention on the Settlement of Investment Disputes between States and Nationals of Other States of March 18, 1965, in order to resolve the dispute under the provisions of the Convention (provided that it has entered into force for both Member States that are parties to the dispute) or under the Additional Facility Rules of the International Centre for Settlement of Investment Disputes (if the Convention has not entered into force for one or both the Member States that are parties to the dispute). 86. An investor having referred a dispute for settlement to a national court or one of the arbitration courts specified in sub-paragraphs 1 and 2 of paragraph 85 of this Protocol shall not have the right to redirect the dispute to any other court or arbitration. The choice made by an investor with respect to a court or arbitration referred to in paragraph 85 of this Protocol shall be final. 87. Any arbitration decision on a dispute considered pursuant to paragraph 85 of this Protocol shall be final and binding on the parties to the dispute. Each Member State shall ensure enforcement of such decisions in accordance with its legislation. Annex 1 to Protocol on Trade in Services, Incorporation, Activities and Investments 1. These Procedures shall apply to measures of the Member States governing activities in the field of telecommunications. 2. These Procedures shall not apply to activities in the field of postal services. 3. Nothing in these Procedures shall be construed as requiring any Member State (or requiring the Member States to oblige service suppliers under its jurisdiction) to determine specific requirements for any telecommunications networks that are not connected to the public telecommunications network. 4. The terms used in these Procedures shall have the following meanings: "public telecommunications network" means a technological system comprising communication tools and lines, intended for fee-based provision of telecommunications services to any users of telecommunications services on the territory of a Member State in accordance with the legislation of that Member State; "universal telecommunications services" means a list compiled by a Member State and specifying telecommunications services that shall be provided by universal service operators to any user in any locality with observance of the established mandatory quality and price levels ensuring their affordability; "telecommunications services" means activities such as receiving, processing, storage, transmission and delivery of electronic messages. 5. Each Member State shall ensure that information on the terms of access to public telecommunications networks and telecommunications services remains publicly available (including information on the terms of provision of services, the rates (prices) of technical connections to such networks, authorities responsible for the preparation and adoption of standards with regard to such access and use, terms for connection of terminal or other equipment, as well as requirements for notifications, registration or licensing, and any other authorisation procedures, as may be required). 6. All activities related to the provision of telecommunications services shall be conducted on the basis of licenses issued by authorised authorities of the Member States, within the territorial boundaries and in compliance with the terms determined therein and using the numbering assigned to each operator in the procedure determined by the legislation of the Member States. 7. In the provision of telecommunications services using the radio spectrum, in addition to a license to conduct relevant activities on the territory of the Member State, the operator shall be obliged to obtain a decision of the authorised authority of the Member State on allocation of respective frequency bands, radio frequency channels or radio frequencies for operation of the electronic radio device and on assignment of respective radio frequencies and/or radio frequency channels. 8. The allocation of frequency bands, radio frequency channels or radio frequencies, the assignment of radio frequencies or radio frequency channels, and the issuance of permits for the use of the radio spectrum shall be carried out in the procedure determined by the legislation of the Member States. 9. All fees related to the allocation and use of the radio spectrum shall be charged in the procedure and amount determined by the legislation of the Member States. 10. The Member States shall take all appropriate measures, including legislative and administrative action, to ensure non-discrimination and equal access to telecommunications networks and services. 11. Each telecommunications operator, regardless of its position in the market of telecommunication services, shall connect to the public telecommunications network in compliance with the legislation of the Member State, if it is technically feasible, on terms no less favourable than those provided to other telecommunications operators of the Member States operating under comparable conditions. 12. The Member States may determine and implement state regulation of tariffs on certain types of telecommunication services. These tariffs for telecommunication services shall be based on the requirements of the legislation of the respective Member State. The Member States shall guarantee to persons of all Member States the provision of services on tariffs of the host country upon conclusion of service contracts for the provision of telecommunication services with operators of the host country. 13. With regard to the types of telecommunications services the tariffs for which are not subject to state regulation, the Member States shall ensure the availability and effective application of the competition law in order to prevent any distortion of the terms of competition between suppliers and recipients of telecommunications services of the Member States. 14. By January 1, 2020, the Council of the Commission shall have approved a common approach to the pricing on traffic transmission services of the Member States. 15. The Member States shall take all necessary measures to ensure unimpeded traffic transmission, including transit type, by telecommunications operators of the Member States based on agreements between operators and with account of the technical capabilities of networks. 16. The Member States shall ensure non-use of subsidies of local and long-distance telecommunications through the completion of international calls on its territory. 17. Radio spectrum resources and the numbering resource shall be allocated and used in accordance with the legislation of the Member States. 18. The Member States shall ensure the provision of universal telecommunications services on their territories on the basis of common principles and rules determined by recommendations of international organisations in this field. Each Member State shall have the right to independently determine the obligations to provide the universal service. These obligations shall not be regarded as anti-competitive provided that they are fulfilled on the basis of transparency, non-discrimination and neutrality in terms of competition and shall not be more burdensome than required for the type of universal services determined by the Member State. 19. Regulatory authorities of the Member States shall be independent from telecommunications operators and shall not be accountable to them. All decisions of such authorities shall be impartial with respect to all participants in this market. Annex 2 to Protocol on Trade in Services, Incorporation, Activities and Investments [1]These exceptions shall be retained and applied in the procedure and on the terms specified in the protocol of accession of the Republic of Kazakhstan to the WTO. [2]These exceptions shall be retained and applied in the procedure and on the terms specified in the protocol of accession of the Republic of Kazakhstan to the WTO. [3]Contracts with a juridical person of the Republic of Kazakhstan shall not be taken into account if the person does not carry out agreed activities on the territory of the Republic of Kazakhstan. The definition of "juridical person of the Republic of Kazakhstan" shall also refer to individual entrepreneurs. [4]These exceptions shall be retained and applied in the procedure and on the terms specified in the protocol of accession of the Republic of Kazakhstan to the WTO. [5]5 These restrictions shall be retained and applied in the procedure and on the terms specified in the Protocol of December 16, 2011, on the Accession of the Russian Federation to the Marrakesh Agreement Establishing the World Trade Organisation of April 15, 1994.

List of "Horizontal" Restrictions Retained by the Member States for All Sectors and Activities
Restrictions	Grounds for Application of Restrictions (paragraphs of Annex 16 to the Treaty)	Grounds for Application of Restrictions (regulatory legal act)
I. The Republic of Belarus
1. The terms and procedures for access, including restrictions of access to subsidies and other state support measures, shall be determined by the legislation of the Republic of Belarus and applied in full, but without prejudice to the provisions of Sections XXIV and XXV of the Treaty on the Eurasian Economic Union (hereinafter "the Treaty")	paragraphs 23 and 26	Budget Code of the Republic of Belarus, Tax Code of the Republic of Belarus, legislation of the Republic of Belarus on the national budget for the corresponding year, Presidential Decree No. 182 of March 28, 2006, On Improving Legal Regulation of the Procedure of Rendering State Support to Juridical Persons and Individual Entrepreneurs, regulatory legal acts of the Republic of Belarus, national and local governmental authorities
2. Land plots may be held by foreign juridical persons and individual entrepreneurs only on a leasehold basis	paragraphs 23 and 26 paragraphs 15-17, 23, 26, 31 and 33	Presidential Decree No.667 of December 27, 2007, On Seizure and Allocation of Land Plots, Land Code of the Republic of Belarus
3. The private partner selection procedure and a list of critical terms of concession agreements shall be in accordance with the legislation of the Republic of Belarus. Activities or the right to possess and use the subject of concession on the basis of a concession agreement, including determining the terms and conditions thereof	paragraphs 15-17, 23, 26, 31 and 33	Law No. 63-Z of the Republic of Belarus of July 12, 2013,On Concessions, Presidential Decree No. 10 dated August 6, 2009, On Establishment of Additional Conditions for Investment Activities in the Republic of Belarus,Law No. 53Z of the Republic of Belarus of July 12, 2013,On Investments
4. The priority in the provision of fauna for use in a particular territory or water area shall be granted to juridical persons and nationals of the Republic of Belarus	paragraphs 23 and 26	Law No. 257-Z of the Republic of Belarus of July 10, 2007, Concerning Fauna
5. Land management (activities on land inventory, land-use planning, incorporation (restoration) and securing the boundaries of land plots, other land management activities aimed at improving the efficiency of land use and protection) shall be carried out only by state organisations subordinate to (included in the system of) a specially authorised state administration authority	paragraphs 16, 17, 23, 26 and 31	Law No. 169-Z of the Republic of Belarus of July 15, 2010, On Property Exclusively Owned by the State and Activities Conducted Exclusively by the State, Presidential Decree No. 667 of the Republic of Belarus of December 27, 2007, On Seizure and Allocation of Land Plots
6. Technical inventory and state registration of immovable property, rights thereto and transactions therewith shall be carried out only by state organisations subordinate to (included in the system of) a specially authorised state administration authority	paragraphs 16, 17, 23, 26 and 31	Law No. 169-Z of the Republic of Belarus of July 15, 2010, On Property Exclusively Owned by the State and Activities Conducted Exclusively by the State, Law No. 133-Z of the Republic of Belarus of July 22, 2002 On State Registration of Immovable Property, Rights thereto and Transactions therewith
7. State property shall be evaluated for the purposes of transactions and/or other legally significant actions therewith by state organisations and organisations with the state share in the authorised capital exceeding 50 percent engaged in assessment activities and organisations subordinate to (included in the system of) a specifically authorised state administration authority	paragraphs 16, 17, 23, 26 and 31	Presidential Decree No.615 of the Republic of Belarus of October 13, 2006, On Appraisal Activities
8. Geodetic and cartographic works the results of which are of national and cross-sectoral importance shall only be conducted by state organisations subordinate to (included in the system of) a specially authorised state administration authority	paragraphs 16, 17, 23, 26 and 31	Law No. 169-Z of the Republic of Belarus of July 15, 2010, On Property Exclusively Owned by the State and Activities Conducted Exclusively by the State
II. The Republic of Kazakhstan
1. The terms and procedures for access, including restrictions of access to subsidies and other state support measures, shall be determined by the legislation of the Republic of Kazakhstan and its government authorities and applied in full, but without prejudice to the provisions of Sections XXIV and XXV of the Treaty	paragraphs 23 and 26	Budget Code of the Republic of Kazakhstan, legislation of the Republic of Kazakhstan on the national budget for the relevant year, regulatory legal acts of the Republic of Kazakhstan, its national and local governmental authorities
2. Foreign persons may not privately own land plots designated for agricultural production and forest planting. The right of temporary paid land use for farming and commodity agricultural production shall be granted to foreign persons for up to 10 years	paragraphs 23 and 26	Land Code of the Republic of Kazakhstan
3. It shall not be allowed for foreign natural and juridical persons to privately own any land located in the border zone and border strip of the Republic of Kazakhstan, as well as within the boundaries of its sea ports	paragraphs 23 and 26	Land Code of the Republic of Kazakhstan, Law No.156-XIII of the Republic of Kazakhstan of September 21, 1994, On Transport in the Republic of Kazakhstan, Law No.70-V of the Republic of Kazakhstan of January 16, 2013, On the State Border of the Republic of Kazakhstan
Agricultural land immediately adjacent to the buffer zone of the state border of the Republic of Kazakhstan (within a three-kilometre area) may only be provided to nationals and juridical persons of the Republic of Kazakhstan for temporary use prior to its delimitation and demarcation, unless otherwise provided by the legislation of the Republic of Kazakhstan on the State Border of the Republic of Kazakhstan
4. The right for permanent use of land may not be granted to foreign land users	paragraphs 23 and 26	Land Code of the Republic of Kazakhstan
5. In respect of subsoil use contracts between the Government of the Republic of Kazakhstan and subsoil users concluded under Law No.291-IV of the Republic of Kazakhstan dated June 24, 2010, On Subsoil and Subsoil Use, the terms of such contracts shall apply prior to the entry into force of the Treaty1	paragraphs 16, 17, 23, 26, 31, 33 and 35	Law No.291-IV of the Republic of Kazakhstan of June 24, 2010, On Subsoil and Subsoil Use, Law of the Republic of Kazakhstan On Subsoil and Subsoil Use of January 27, 1996, Law of the Republic of Kazakhstan On Oil of June 28, 1995
6. In respect of subsoil use contracts between the Government of the Republic of Kazakhstan and subsoil users concluded under Law No.291-IV of the Republic of Kazakhstan dated June 24, 2010, On Subsoil and Subsoil Use, after the entry into force of the Treaty2:	paragraphs 16, 17, 23, 26, 31, 33 and 35	Law No.291-IV of the Republic of Kazakhstan of June 24, 2010, On Subsoil and Subsoil Use, Law of the Republic of Kazakhstan On Subsoil and Subsoil Use of January 27, 1996, Law of the Republic of Kazakhstan On Oil of June 28, 1995.
6.1. The Republic of Kazakhstan shall reserve the right to demand from investors, in accordance with respective investment contracts, the procurement of services from juridical persons of the Republic of Kazakhstan:
6.1.1. with respect to exploration and mining of solid minerals - not more than 50 percent of all services purchased by the investor in implementation of an investment contract
6.1.2. with respect to exploration and mining of hydrocarbons:
6.1.2.1. until January 1, 2016 - no more than 70 percent of all services purchased by the investor in implementation of an investment contract
6.1.2.2. from January 1, 2016, to the date of accession of the Republic of Kazakhstan to the WTO - no more than 60 percent of all services purchased by the investor in implementation of an investment contract
6.1.2.3. from the date of accession of the Republic of Kazakhstan to the WTO - no more than 50 percent of all services purchased by the investor in implementation of an investment contract
6.2. within 6 years of the accession of the Republic of Kazakhstan to the WTO, when holding a tender to attract a subcontractor the investor shall conditionally reduce the price of the tender bid submitted by a juridical person of the Republic of Kazakhstan by 20 percent, if at least 75 percent of skilled employees of the subcontractor are nationals of the Republic of Kazakhstan, provided that the juridical person of the Republic of Kazakhstan meets the standards and quality characteristics specified in the tender documentation
6.3. upon expiration of 6 years after the accession of the Republic of Kazakhstan to the WTO, when holding a tender to attract a subcontractor the investor shall conditionally reduce the price of the tender bid submitted by a juridical person of the Republic of Kazakhstan by 20 percent, if at least 50 percent of skilled employees of the subcontractor are nationals of the Republic of Kazakhstan, provided that the juridical person of the Republic of Kazakhstan meets the standards and quality characteristics specified in the tender documentation
6.4. when determining the terms of the tender for the right of subsoil use, the Republic of Kazakhstan shall not set the minimum number of local labour or services in excess of 50 percent, subject to the following:
6.4.1. the number of local labour attracted by an investor that has been granted the right of subsoil use (hereinafter "the investor") shall be calculated in equal proportions on the basis of the number of executives, managers and professionals, within the meaning of these terms specified for the purposes of entry and temporary stay of persons under intra-corporate transfers in the List of Specific Commitments of the Republic of Kazakhstan to the WTO with regard to access to the market of services(hereinafter "skilled labour"), who are nationals of the Republic of Kazakhstan
6.4.2. the local labour in all services provided to the investor shall be calculated as a proportion of the total annual amount of payments (costs) for the provision of services under all contracts made in favour of juridical persons of the Republic of Kazakhstan.3 However, the amount paid to a juridical person of the Republic of Kazakhstan shall be reduced by any amount paid for services under a subcontracting agreement at any level to organisations that are not juridical persons of the Republic of Kazakhstan
6.4.3. when determining the successful bidder to be granted the right of subsoil use, the Republic of Kazakhstan shall not take into account the fact that the potential investor may offer a number of local labour and services exceeding 50 percent
6.5. The Republic of Kazakhstan shall reserve the right to demand from investors, under respective investment contracts, the procurement of goods in the procedure and on the terms specified in paragraph 5 of section II of the list in Annex 28 to the Treaty
7. The exception regarding the number of local labour shall be retained and applied under the conditions and in the procedure provided for in paragraph 6 of section II of the list to Annex 28 to the Treaty with regard to the procurements made by Samruk-Kazyna National Welfare Fund (NWF) and organisations, in which 50 percent or more of the voting shares (participation) are directly or indirectly owned by Samruk-Kazyna, as well as companies directly or indirectly owned by the state (with the state share amounting to 50 percent or more), in accordance with Law No.550-IV of the Republic of Kazakhstan of February 1, 2012, On the National Welfare Fund, and Governmental Decree No.787 of the Republic of Kazakhstan dated May 28, 2009, On Approval of Model Regulations on procurement of goods, works and services provided by the national managing holding, national holdings, national companies and organisations in which 50 percent of shares (participation) or more are directly or indirectly owned by the national managing holding, national holdings or national companies.4	paragraphs 16, 17, 23, 26, 31, 33 and 35	Law No.550-IV of the Republic of Kazakhstan of February 1, 2012, On the National Welfare Fund, Governmental Decree No.787 of the Republic of Kazakhstan dated May 28, 2009, On Approval of Model Regulations on procurement of goods, works and services provided by the national managing holding, national holdings, national companies and organisations in which 50 percent of shares (participation) or more are directly or indirectly owned by the national managing holding, national holdings or national companies
8. The state authority may refuse to issue a permit to the applicant to carry out transactions with the use of strategic resources and/or involving the use or acquisition of strategic facilities in the Republic of Kazakhstan if it may result in a concentration of rights in one person or group of persons from one country. Compliance with this requirement shall be also mandatory for transactions with related parties. In order to ensure the national security, the Government of the Republic of Kazakhstan shall impose restrictions on the transfer and emergence of ownership of strategic resources (facilities) of the Republic of Kazakhstan. For the purposes of implementation of the relevant decision (act) of the Government of the Republic of Kazakhstan, the issuer, the majority of shares of which are directly or indirectly owned by a national managing holding, shall not be entitled to sell shares to foreign nationals and/or juridical persons or and stateless persons when placing its shares on an organised securities market	paragraphs 15, 16, 23, 26, 31 and 33	Law No. 527-IV of the Republic of Kazakhstan of January 6, 2012, On National Security, Law No. 461 of the Republic of Kazakhstan of July 2, 2003, On the Securities Market
9. The private partner selection procedure and a list of critical terms of concession agreements shall be in accordance with the legislation of the Republic of Kazakhstan. The right to assign the exclusive private partner shall be reserved. Individual rights and obligations of the public partner may be exercised by authorised public partners	paragraphs 15-17, 23, 26, 31 and 33	Law No. 167-3 of the Republic of Kazakhstan of July 7, 2006, On Concessions
10. Restrictions may be imposed in respect of activities within the continental shelf of the Republic of Kazakhstan	paragraphs 15-17, 23, 26, 31 and 33	Law No. 291-IV of the Republic of Kazakhstan of June 24, 2010, On Subsoil and Subsoil Use
11. The priority in the provision of wildlife for use in a particular territory or water area shall be granted to juridical persons and nationals of the Republic of Kazakhstan	paragraphs 23 and 26	Law No.593-II of the Republic of Kazakhstan dated July 9, 2004, On Protection, Reproduction and Use of Fauna
III. The Russian Federation
1. The terms and procedures for access, including restrictions of access to subsidies and other state support measures, shall be determined by federal, regional and municipal authorities and applied in full, but without prejudice to the provisions of Sections XXIV and XXV of the Treaty	paragraphs 23 and 26	Budget Code of the Russian Federation, federal law on the federal budget for the corresponding year, regulatory legal acts of the Russian Federation, its constituents and municipalities
2. Foreign ownership of agricultural land and land in border areas shall be prohibited and may be restricted for other types of land. Lease of land shall be permitted for a period of up to 49 years	paragraphs 23 and 26	Land Code of the Russian Federation, Federal Law No.101FZ of July 24, 2002, On Agricultural Land Transactions
3. Russian juridical persons with a share in their authorised (share) capital owned by foreign persons (or their combined share) exceeding 50 percent may own agricultural lands exclusively on lease terms. The term of such lease shall not exceed 49 years	paragraphs 23 and 26	Land Code of the Russian Federation, Federal Law No.101FZ of July 24, 2002, On Agricultural Land Transactions
4. Transactions involving lands of traditional residence and economic activities of indigenous peoples and small ethnic groups, as well as land plots located in the border areas and other special territories of the Russian Federation may be restricted or prohibited in accordance with respective regulatory legal acts of the Russian Federation	paragraphs 23 and 26	Land Code of the Russian Federation, Federal Law No. 4730-I of February 1, 1993, On the State Border of the Russian Federation
5. With regard to trade in services in the procedure specified in the second and third indents of sub-paragraph 22 of paragraph 6 of Annex 16 of the Treaty, juridical persons of the Russian Federation shall have the preferential right to participate in production sharing agreements as contractors, suppliers, carriers or otherwise under respective agreements (contracts) with investors	paragraph 23	Federal Law No.225-FZ of December 30, 1995, On Production Sharing Agreements
6. Incorporation by persons of any other Member State of juridical persons, opening of branches and representative offices, and registration as individual entrepreneurs in closed administrative-territorial entities of the Russian Federation, acquisition by persons of any other Member State of a share in the capital of juridical persons registered on the territory of a closed administrative-territorial entity and activities of juridical persons, branches and representative offices registered in a closed administrative-territorial entity (including with the use of foreign capital), may be restricted or prohibited pursuant to respective regulatory legal acts of the Russian Federation	paragraphs 15-17, 23, 26, 31 and 33	Federal Law No.3297-1 of July 14, 1992, On Closed Administrative-Territorial Entities
7. Restrictions may be imposed in respect of activities within the continental shelf of the Russian Federation	paragraphs 15-17, 23, 26, 31 and 33	Federal Law No.187-FZ of November 30, 1995, On the Continental Shelf of the Russian Federation
8. The priority in the provision of wildlife for use in a particular territory or water area shall be granted to juridical persons and nationals of the Russian Federation	paragraphs 23 and 26	Law No. 52-FZ of the Russian Federation of April 24, 1995,Concerning Fauna
9. As regards production sharing agreements entered into before January 1, 2012 (hereinafter - the agreements)5:	paragraphs 23 and 26	Federal Law No.225-FZ of December 30, 1995, On Production Sharing Agreements
the terms of the tender to conclude the agreement shall provide for participation of Russian juridical persons in the implementation of agreements in proportions determined by the Government of the Russian Federation
the agreements shall provide for obligations of the investor to:
grant to Russian juridical persons the preferential right to participate in the work under the agreements as contractors, suppliers, carriers or in any other capacity on the basis of respective agreements (contracts) with investors
attract workers that are nationals of the Russian Federation, the amount of which shall be not less than 80 percent of all workers involved, attract foreign workers and specialists only in the initial stages of work under the agreement or in the absence of duly qualified workers and specialists that are nationals of the Russian Federation
procure process equipment, facilities and materials of Russian origin required for exploration, mining transportation and processing of minerals in the amount of not less than 70 percent of the total cost of process equipment, facilities and materials acquired (including on lease and otherwise) in each calendar year for the performance of work under the agreement, the cost of the acquisition and use of which shall be reimbursed to the investor by make-up products. For this purpose, the equipment, facilities and materials shall be deemed to be of Russian origin if manufactured by Russian juridical persons and/or nationals of the Russian Federation on the territory of the Russian Federation of components, parts, structures and assemblies produced by at least 50 percent in value terms on the territory of the Russian Federation by Russian juridical persons and/or nationals of the Russian Federation.
The Member States shall include in the agreement a condition requiring that at least 70 percent (in value terms) of the process equipment used for mining, transportation and processing (if required under the agreement) purchased and/or used by the investor to perform work under the agreement shall be of Russian origin. This provision shall not apply to the use of major pipeline transportation facilities, the construction and purchase of which are not provided for by the agreement
10. The private partner selection procedure and a list of critical terms of concession agreements shall be in accordance with the legislation of the Russian Federation. The right to assign the exclusive private partner shall be reserved. Individual rights and obligations of the public partner may be exercised by the authorised public partner	paragraphs 15-17, 23, 26, 31 and 33	Federal Law No.115-FZ of July 21, 2005, On Concession Agreements
11. Transactions concluded by a person of any other Member State and entailing the establishment of control over Russian economic companies engaged in at least one activity of strategic importance for the national defence and state security shall be subject to approval by the authorised authority of the Russian Federation in the procedure specified in regulatory legal acts of the Russian Federation.	paragraphs 15, 16, 23, 26, 31 and 33	Federal Law No. 57-FZ of April 29, 2008, On the Procedure for Foreign Investment in Economic Companies of Strategic Importance for National Defence and State Security
Foreign governments, international organisations, as well as their controlled persons, including those established on the territory of the Russian Federation, shall not conduct any transactions entailing the establishment of control over Russian economic companies engaged in at least one activity of strategic importance for the national defence and state security.
Foreign investors or a group of persons shall be obliged to submit to the authorised authority information on the acquisition of 5 or more percent of shares (stakes) in the authorised capital of companies engaged in at least one activity of strategic importance for the national defence and state security
12. Land plots located within the boundaries of a sea port may not be owned by foreign nationals, stateless persons or foreign organisations	paragraphs 23 and 26	Federal Law No.261-FZ of November 8, 2007, On Sea Ports in the Russian Federation and on Amendments to Certain Legislative Acts of the Russian Federation