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010000,
14, Beibitshilik str. Astana,
Republic of Kazakhstan
e-mail:bayterek.space@mail.ru
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Agreement between the Government of the Republic of Kazakhstan and the Russian Federation on a creation at the cosmodrome "Baikonur" space rocket complex "Baiterek" (Moscow, 22 December 2004)

Ratified by the Law of the Republic of Kazakhstan dated October 21, 2005 № 82-III

The Government of the Republic of Kazakhstan and the Government of the Russian Federation, hereinafter referred to as Parties, guided by the Agreement between the Republic of Kazakhstan and the Russian Federation on the basic principles and conditions of use of the cosmodrome "Baikonur" from 28th of March 1994, an agreement to promote the creation and development of industrial, commercial, credit and finance, insurance and mixed transnational associations of 15 April 1994, lease agreement of "Baikonur" complex between the Government of the Republic of Kazakhstan and the Russian Federation of December 10, 1994 (hereinafter - the lease agreement), the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the move right across the border of goods required to carry out work at the cosmodrome "Baikonur "dated December 25, 1993, based on the provisions of the Agreement between the Republic of Kazakhstan and the Russian Federation on cooperation for the effective use of the complex "Baikonur", dated January 9, 2004, taking into account the provisions of the Agreement between the Government of the Republic of Kazakhstan and the Russian Federation on Mutual Protection of Classified Information dated July 7, 2004, willing to deepen the traditionally existing production relations and cooperation between Kazakhstan and Russian enterprises and organizations, work together to develop and implement at the cosmodrome "Baikonur" modern rocket and space technology with a high level of environmental safety, have agreed as follows:

Article 1

The purpose of this Agreement is to define the basic principles and conditions for cooperation between the Parties in the creation and sharing of new ecologically safe space rocket complex "Baiterek" at the cosmodrome "Baikonur" space ground-based infrastructure in order to meet the commercial space programs and projects, as well as the implementation of national space programs of the Republic of Kazakhstan and the Russian Federation.

 

Article 2

For the purposes of this Agreement, the following terms and definitions:

·        "Space rocket complex" Baiterek "- a complex, designed for the Russian launch vehicle “Angara”
 spacecraft launches and its possible modifications, with a high level of environmental safety. The structure of space rocket complex "Baiterek" includes starting and technical positions, created on the basis of technical means, structures and communications of the cosmodrome "Baikonur";

·        "Classified information" - information, expressed in any form, be protected in accordance with the legislation of each Party, as well as formed in the process of cooperation between the Parties, the unauthorized disclosure of which may prejudice the safety and interests of the Republic of Kazakhstan and/or the Russian Federation;

·        "Confidential Information" - any non-public information, other than those assigned to the category of classified information with respect to scientific, technical, commercial, production and other activities, including trade secrets and know-how protected by the disclosing Party or its businesses and organizations from unauthorized access, dissemination and use, as well as when the information has actual or potential commercial value by virtue of its being unknown to third parties, there is no free access on the legal basis and the information holder shall take measures to protect its confidentiality. The category of confidential information includes any copies of documents containing confidential information and any documents produced by the use or on the basis of original documents containing confidential information;

·        "Goods" - launch vehicles, boosters, spacecraft, any other equipment necessary for the preparation and launch, control and test equipment, fuel, construction and other materials, tools and equipment, as well as technology in the form of information captured on material carriers necessary for the development, production or use in space programs. The information category includes other information expressed in any material form (computer software, including databases, trade secrets, know-how, manufacturing documentation and technical specifications);

·        "Performing organization" - the organization of the Parties attracted by a joint stock company "Joint Kazakh-Russian enterprise" Baiterek "for the execution of works on creation and operation of space rocket complex" Baiterek ", regardless of ownership.

 

Article 3

In order to create space rocket complex "Baiterek" and its further exploitation Parties form a Joint Stock Company "Joint Kazakh-Russian enterprise" Baiterek "(hereinafter - the joint venture).

The joint venture is created on the principles of equality of Kazakhstani and Russian participation. The founder of the Kazakh side stands entity authorized by the Kazakh side.

The founder of Russian Party stands by the Federal State Unitary Enterprise "State Research and Production Space Center named after M.V. Khrunichev".

Founders contribute to the authorized capital of the Joint Venture funds in the amount of 200 thousand US dollars.

The joint venture is registered in the city of Astana, and operates in accordance with this Agreement, the legislation of the Republic of Kazakhstan and the constituent documents.

The joint venture is a subject to taxation in accordance with the legislation of the Republic of Kazakhstan.

·        Works to ensure the spacecraft launches in the framework of this Agreement are carried out in the manner determined by the laws and regulations of the Russian Federation, under the leadership of the Parties of the interstate commission.

Article 4

To create space rocket complex "Baiterek" Kazakhstan Party will provide the Joint Venture budget loan amount equivalent to 223 million US dollars for a period of 19 years with a 5-year grace period on repayment of principal debt, with 4-year grace period on payment of remuneration, at the interest rate of 0.5% per annum, with specification of the amount of the loan as a result of the budget approved by the Parties examination of conceptual design.

The Kazakh side requests from the Joint Stock Company "Development Bank of Kazakhstan" an implementation of agent functions on a project service, financed by the budget loan.

Accrual of interest on the loan will be carried out since the cash deposit of the Joint Venture, opened by the Agent.

To enforce the obligations of the Joint Venture on budget loan is the property of the Joint Venture.

In the event of a claim to joint ventures, associated with foreclosure on its owned property, the Parties shall ensure compliance with international non-proliferation regimes of weapons of mass destruction and their means of delivery.

Article 5

In order to implement this Agreement the Russian Party to the commissioning of the launch complex "Baiterek" space rocket complex will provide space rocket complex flight test "Angara" at the cosmodrome "Plesetsk" in the framework of the national space program of the Russian Federation.

Article 6

In order to coordinate the implementation of this Agreement, the Parties appoint the competent authorities:

with the Kazakhstan Party - the Ministry of Education and Science of the Republic of Kazakhstan;

the Russian Party - the Federal Space Agency.

As part of this program agreement and cooperation projects, as well as the principles, rules and organizational procedures, financial, legal and technical nature relating to their implementation, entail the implementation of specific activities may be the subject of separate agreements and contracts concluded by the competent authorities of the Parties, joint ventures or performing organizations.

If you change the competent authority of a Party, that Party shall send a written notice to the other Party through diplomatic channels.

Article 7

Parties are not responsible for the obligations of the Joint Venture; a joint venture is not responsible for the obligations of the Parties. Failure of the Parties from liability for the obligations of the Joint Venture does not apply to claims relating to intellectual property, protection of classified information and technologies, and the consideration of these claims is governed by the laws of the State of the Party whose interests are violated.

Joint venture performing organization determines to perform work under this Agreement taking into account the laws and other normative legal acts of States Parties for the protection of classified information.

The list of organizations performing joint venture sends to the competent authority of the Kazakh side for transmission of the list of the tax authority.

Article 8

Kazakhstan Party shall ensure the provision of the following preferences:

a) works (services) of the Joint Venture, performing organizations of the Republic of Kazakhstan and contractors performing organizations of the Republic of Kazakhstan performed (rendered) directly in outer space, as well as preparatory ground works (services), technologically determined and inseparably connected with the performance of work (provision of services) directly in space, according to the Appendix, which is an integral part of this Agreement shall be subject to value added tax at zero rate.

Refund of value added tax on turnovers taxable at a zero rate, performed in accordance with the tax laws of the Republic of Kazakhstan. At the same time fulfilling the organization, applying a zero rate on value added tax pursuant to this subparagraph shall be determined in the list of performing organizations referred to in article 7 of this Agreement.

The basis for the application of zero rate of value added tax is:

for the joint venture - an agreement (contract) for the execution of works (services) specified in the Annex to this Agreement, and copies of documents confirming the execution of works (services);

for performing organizations - an agreement (contract) for the execution of works (services), concluded directly with the joint venture, and copies of documents confirming the execution of works (services) for the Joint Venture;

 for contractors performing organizations of the Republic of Kazakhstan-agreement (contract) for execution of works (services), concluded directly with the performing organization with an agreement (contract) for execution of works (services), a Joint Venture and copies of documents confirming the execution of works (services) for the performing organization. At the same time an indication of the performance of work (services) contractor for performing organizations of the Republic of Kazakhstan and the types of work performed by the contractor (of services) should be defined in the agreement (contract) concluded between the Joint Venture and the performing organization;

b) exemption from the Joint Venture payment of corporate income tax for a period of 15 years from the date of commissioning of space rocket complex "Baiterek" state acceptance commission on the income derived from the execution of works (services) specified in the Annex to this Agreement;

c) exemption from the Joint Venture property tax on objects of taxation is directly used in the implementation of activities related to the performance of work (rendering of services), specified in the Annex to this Agreement;

g) release of the Joint Venture from the land tax and the fee for use of land plots on the land allocated and used for the implementation of joint ventures associated with the performance of work (rendering of services), specified in the Annex to this Agreement;

d) the release of the Joint Venture and performing organizations of the Republic of Kazakhstan from taxes, customs duties and taxes on import of goods supplied for the purpose of establishing and operating a "Baiterek" space rocket complex in accordance with the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation to move right through border goods required to carry out work at the cosmodrome "Baikonur" from 25 December 1993;

e) Import of goods, carried out by the joint venture and executing agencies of the Republic of Kazakhstan for the purpose of establishing and operating a space rocket complex "Baiterek", is not subject to quotas, licensing, other restrictions.

Article 9

The Russian side in order to implement this Agreement provides performing organizations registered in the Russian Federation, in accordance with the preferences of the Russian Federation. Deliveries of goods to the cosmodrome "Baikonur" produced without the use of the quota regime.

Article 10

In order to create space rocket complex "Baiterek" Parties shall provide the Joint Venture Law, in coordination with the competent authorities, the creation of new structures (objects) and the introduction of separable and inseparable improvements to existing facilities (facilities) cosmodrome "Baikonur" space infrastructure.

In order to implement this Agreement, certain facilities (facilities) cosmodrome "Baikonur" to deal with them plots of land may be transferred to a joint venture with them except from the leased facilities of "Baikonur" complex in the manner determined by the lease.

Use Joint Venture other structures (objects) of the cosmodrome "Baikonur" is carried out on a contractual basis.

Article 11

The project to create space rocket complex "Baiterek" is subject to state examination in the Republic of Kazakhstan and the Russian Federation in accordance with the laws of the Parties.

For the organization of the state examination of the project in the Republic of Kazakhstan project materials to the competent authority of the Kazakh side to meet the requirements related to ensuring the regime of control over missile technology, and for the protection of classified information requirements.

Examination of construction projects that are created for the purpose of this Agreement shall be conducted in accordance with the Agreement on interstate expertise of the construction projects of mutual interest to the member states of the Commonwealth of Independent States, on 13 January 1999.

Article 12

When launching the spacecraft with space rocket complex "Baiterek" function performs launching State Russian Federation.

The parties are jointly and severally liable for damage caused by space objects when the space programs using space rocket complex "Baiterek" in accordance with the Convention on International Liability for Damage Caused by Space Objects of 29 March 1972, in proportion to the degree of their guilt.

Types of risks to be insured, as well as the conditions and procedure for insurance in the preparation and implementation of spacecraft launches to space rocket complex "Baiterek" are determined by agreement between the competent authorities of the Parties.

Article 13

Responsibility, size, order and terms of compensation for the damage that may be caused during the performance of work under this Agreement shall be determined in accordance with the laws of the Parties through negotiations.

Article 14

Issues of protection, distribution and use of intellectual property created or transmitted in the course of cooperation under this Agreement shall be determined in accordance with the laws of the Parties, as well as international treaties which participants are the Republic of Kazakhstan and the Russian Federation.

Cooperation under this Agreement shall not affect the rights of performing organizations, the competent authorities of the Parties and intellectual property obtained prior to the start of joint activities under this Agreement, or outside of it.

Each Party shall take all necessary measures, provided by the legislation of its State, to ensure the protection of classified information in the implementation of this Agreement, as well as control over the preservation of its competent authorities, executing agencies, and joint ventures’ confidentiality of information transmitted in the course of cooperation under this Agreement. This confidential information must be labeled as such by the Party, the competent authority, a joint venture or performing organization that require confidentiality.

In the case of implementation of this Agreement is found to be necessary to transfer or exchange of information, the order of which is determined by reference to the laws of the state, for this purpose they take the appropriate solutions in the form prescribed by the legislation of the Parties.

Any information on joint developments made under this Agreement may be transmitted to the side that is not a party to it, only by mutual consent of the competent authorities of the Parties, by agreement in writing.

Article 15

Parties, their competent authorities, joint ventures and performing organizations are in accordance with the laws of their states and the necessary steps under international law to prevent unauthorized access to protected products and technologies related to the performance of work under this Agreement and the unauthorized transfer of such technologies and products to the third parties. To this end, the organization founding a joint venture with the Russian side, with performing and joint ventures develops security technology plans that are submitted for approval by the competent authorities of the Parties.

Plans of the protection of technologies should include a common list of protected goods and technology, security measures and responsibilities of participants of joint programs and projects at all stages of the creation and use of "Baiterek" space rocket complex with the requirements of Control Regime Missile Technology.

Article 16

During stay in the territory of the cosmodrome "Baikonur" Joint Venture employees must comply with all rules and regulations related to staying on objects with a special regime of safe operation. Such rules and regulations shall be communicated to employees of cosmodrome "Baikonur" by mode service.

Article 17

Resolution of disputes concerning the interpretation and application of the provisions of this Agreement, and the settlement of the consequences of unforeseen and insurmountable situations (force majeure) will be carried out through mutual consultations and negotiations or other procedures agreed upon by the Parties or their competent authorities.

Article 18

If accepted after the entry into force of this Agreement, the laws and other normative legal acts of States Parties or international agreements to which both are parties, will provide more favorable conditions for joint ventures, these favorable conditions will be applied.

Article 19

This Agreement shall not affect the rights and obligations of the Parties and their competent authorities, stemming from their other international treaties agreed upon by the Parties.

Article 20

This Agreement shall be applied provisionally from the date of its signing and shall enter into force from the date of receipt of the last notification of the completion by the Parties of internal procedures necessary for its entry into force.

This Agreement may be amended and supplemented by separate protocols, which will be an integral part of this Agreement and enter into force in the manner provided by this Article.

This agreement is valid until the expiration of the lease Treaty or before the expiry of one year from the date on which either Party receives a written notice from the other Party of its intention to terminate it, depending on which of the above events occurs first.

Unless the parties otherwise agree, the termination of this Agreement in the manner provided by this Article shall not affect the execution of unfinished projects and programs under this Agreement. Termination of this Agreement is not a legal basis for the revision of the legal entities or non-compliance of the unilateral contractual obligations arising in connection with this Agreement prior to its termination.

Done in Moscow on 22 December 2004 in two copies, each in the Kazakh and Russian languages, both texts are equally authentic.

 

For the Government                                                     For the Government

of the Republic of Kazakhstan                                                of the Russian Federation

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Application

List of works (services) performed (provided) directly in outer space, as well as in the implementation of complex preparatory work (services), technology driven and is inextricably linked to the performance of work (rendering of services) directly in outer space, which provides preferences in accordance with Article 8 of this Agreement

The names of the works (services)

1. Work (services) performed (rendered) directly in outer space:

·        removal of spacecraft, space stations and other space systems in outer space;

·        exploitation of space technology for communications, data transmission, television and radio broadcasting;

·        operation of satellite navigation systems and top geodesic;

·        the use of satellites for observation of objects and phenomena;

·        test spacecraft directly in space;

·        works (services) performed (rendered) using satellites located directly in outer space;

·        flight control software and communication space systems, space vehicles (objects), including carried out with the earth's surface;

·        research (basic and applied) using both manned and unmanned spacecraft;

·        remote sensing of the Earth and other planets from outer space, environmental monitoring and meteorology with the spacecraft, including the operation of these devices.

2. The complex of preparatory ground works (services), technology driven and is inextricably linked to the performance of work (rendering of services) directly in outer space:

·        production of special fuel and their means of delivery, delivery and refueling of spacecraft and the means of their elimination;

·        transportation spacecraft and their means of delivery to their places and start the test and return to the enterprise-manufacturer;

·        receiving information from satellites, space stations and other space systems, its processing and making available to the consumer;

·        theoretical and design-search researches related to justification and software design development of rocket and space technology, the production of rocket and space technology and its operation;

·        design, engineering, production and testing of spacecraft, space stations, launch vehicles and their components, including: missile, aircraft and other systems and their constituent rockets, aircraft carrier, boosters, their means of preparation, storage and transportation;

·        design, engineering, manufacturing and specialized testing of spacecraft control systems and their means of delivery, as well as means of telemetry monitoring of the functioning of the spacecraft and the means for their removal;

·        design, engineering, production and testing of spacecraft life support systems and means for their removal;

·        design, engineering, production and testing, resupply and maintenance (service) of technical and technological systems and their components of space infrastructure, providing transportation, storage, testing, launch of space rocket complexes and spacecraft control in flight;

·        investigation of space flight accidents;

·        construction, maintenance and operation of test centers and offices, launch and technical complexes, airfields and other objects of space infrastructure and its components, including the provision of services for the construction and installation work, as well as components of aggregates, systems and so on. e., for receiving, storage, transportation and testing, launch preparation, launch missiles, space launch vehicles (objects);

·        post-flight maintenance and / or repair of spacecraft and their means of delivery;

·        the implementation of the guarantee oversight of spacecraft and their means of delivery, including the repair and restoration work in the operation;

·        recycling systems and equipment rocket and space technology.