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RUSSIA RATIFIES DEAL ON DUTY-FREE GAS, OIL PRODUCT AND DIAMOND EXPORTS TO ARMENIA
ITAR-TASS, Russia
June 25, 2014 Wednesday 12:37 PM GMT+4
MOSCOW, June 25 /ITAR-TASS/. The Federation Council, the upper house
of Russia's parliament, ratified on Wednesday an intergovernmental
agreement with Armenia on cooperation in commodity supplies to the
South Caucasus republic.
The document signed on December 2, 2013 stipulates Russia's duty-free
supplies of petroleum products, natural gas and natural uncut diamonds
to Armenia before the ex-Soviet republic joins the Eurasian integration
space based on the Customs Union of Russia, Belarus and Kazakhstan.
The agreement has been concluded for an indefinite term and has been
temporarily applied 20 days after its signing. The provisions on the
duty-free exports of natural gas, petroleum products and diamonds
will be in effect until December 31, 2014 and may be extended upon
the parties' consent.
The agreement prohibits Armenia to re-export Russia's oil product,
natural gas and diamond supplies to third countries free of export
duties. Otherwise, Russia has the right to demand compensation in US
dollars equivalent to the value of export customs duties effective
in Russia as of the date when such violations are exposed.
Such compensation may be substituted with the lower amount of
commodities supplied to Armenia free of customs duties compared with
the amount stipulated in the agreed delivery balance.
Russia has also the right to reduce or suspend duty-free commodity
supplies to Armenia. The amount of compensation, which Armenia fails
to pay to Russia, will be acknowledged as Armenia's debt to Russia
and will carry interest.
Upon termination of the agreement by either party, Armenia's
obligations to pay compensation to Russia and/or acknowledge unpaid
amounts as its state debt to Russia will stay in effect until they
are fully discharged by the South Caucasus republic.
ITAR-TASS, Russia
June 25, 2014 Wednesday 12:37 PM GMT+4
MOSCOW, June 25 /ITAR-TASS/. The Federation Council, the upper house
of Russia's parliament, ratified on Wednesday an intergovernmental
agreement with Armenia on cooperation in commodity supplies to the
South Caucasus republic.
The document signed on December 2, 2013 stipulates Russia's duty-free
supplies of petroleum products, natural gas and natural uncut diamonds
to Armenia before the ex-Soviet republic joins the Eurasian integration
space based on the Customs Union of Russia, Belarus and Kazakhstan.
The agreement has been concluded for an indefinite term and has been
temporarily applied 20 days after its signing. The provisions on the
duty-free exports of natural gas, petroleum products and diamonds
will be in effect until December 31, 2014 and may be extended upon
the parties' consent.
The agreement prohibits Armenia to re-export Russia's oil product,
natural gas and diamond supplies to third countries free of export
duties. Otherwise, Russia has the right to demand compensation in US
dollars equivalent to the value of export customs duties effective
in Russia as of the date when such violations are exposed.
Such compensation may be substituted with the lower amount of
commodities supplied to Armenia free of customs duties compared with
the amount stipulated in the agreed delivery balance.
Russia has also the right to reduce or suspend duty-free commodity
supplies to Armenia. The amount of compensation, which Armenia fails
to pay to Russia, will be acknowledged as Armenia's debt to Russia
and will carry interest.
Upon termination of the agreement by either party, Armenia's
obligations to pay compensation to Russia and/or acknowledge unpaid
amounts as its state debt to Russia will stay in effect until they
are fully discharged by the South Caucasus republic.