Politics

AGREEMENT

between the Government of the Russian Federation
and the Government of the Republic of Tatarstan
on delegation of powers and terms of reference in defense industries

The Government of the Russian Federation and the Government of the Republic of Tatarstan, further referred to as the Sides, concerned about defense and security, agree to the following:

Article 1

The Sides agree to preserve their scientific, intellectual, technical, and productive resources pertaining to defense industry in a single military-industrial complex.

Article 2

The Government of the Russian Federation shall implement state regulation and coordination of activities of state enterprises pertaining to defense industry which are located in the Republic of Tatarstan, including such activities as development and production of new weapons or military equipment as well as planning and realization of conversion programs of these enterprises and programs aimed at production of dual purpose goods.
The Government of the Republic of Tatarstan shall implement state regulation and coordination of activities of state enterprises pertaining to defense industry located on the territory of the Republic of Tatarstan, including such activities as development and production of consumer products in accordance with programs developed in the Republic of Tatarstan.
Each Side independently funds research and development programs as well as production costs for these programs. The Sides can have joint programs which shall be funded and implemented in accordance with special agreements.

Article 3

Managers of state enterprises pertaining to defense industry shall be appointed or fired by joint decisions of bodies of executive power, by plenipotentiary representatives of the Government of the Russian Federation and the Government of the Republic of Tatarstan.

Article 4

In their relations with enterprises pertaining to defense industry located in the Republic of Tatarstan, bodies of state power of the Russian Federation shall be guided by the following Laws of the Russian Federation: "On Defense", "On Conversion of the Defense Industry of the Russian Federation", "On Supply of Goods and Services for State Necessities", other legal acts, as well as this Agreement. Bodies of state power of the Russian Federation shall:
- inform the management of enterprises about long-term programs on research, development and production of weapons and military equipment which are included in the annual state defense orders;
- conclude long-term contracts with state enterprises on the implementation of state orders;
- make decisions on partial and full withdrawal of enterprises from the sphere of defense industry;
- upon the consent of the Government of the Republic of Tatarstan approve funded conversion programs for the production of goods to meet the demand in the Russian Federation.

Article 5

Bodies of state power of the Russian Federation shall conclude contracts with and establish plans for mobilization preparedness, the development and preservation of mobilization capacity and reserves, of enterprises located in the Republic of Tatarstan, irrespective of the type of property ownership. These plans and contracts shall be coordinated with bodies of state power of the Republic of Tatarstan.

Article 6

State enterprises pertaining to defense industry located in the Republic of Tatarstan while developing and producing weapons, military equipment or spare parts shall be guided by standards, scientific and technological methods and normative instructions existing in the Russian Federation. These enterprises shall apply Russian Federation standards and secrecy regime instructions for the production of special products for civil consumption.

Article 7

Bodies of state power of the Republic of Tatarstan shall assist enterprises located in the Republic of Tatarstan in implementing the state defense orders by providing these enterprises with all kinds of energy resources, local raw materials in required volumes and in some cases with specialists.

Article 8

For the purposes of expedient and rational utilization of intellectual, scientific and productive resources of the state enterprises pertaining to defense industry located in the Republic of Tatarstan, the Sides agreed to give priority to these enterprises in the development and production of weapons and military equipment, as well as in the production of consumer goods corresponding to the highest levels of world technological and scientific achievements. The Government of the Russian Federation, based on considerations of scientific and technological necessity, with the consent of the Government of the Republic of Tatarstan, may restructure defense enterprises.

Article 9

The Republic of Tatarstan may export weapons and military equipment produced on the territory of the Republic of Tatarstan following instructions adopted in the Russian Federation.
The instructions on distribution of hard currency earned from these sales are defined in a separate agreement.

Article 10

The Government of the Russian Federation and the Government of the Republic of Tatarstan shall adopt a program of joint measures providing conditions for stable implementation of state defense orders and conversion plans by enterprises located in the Republic of Tatarstan. The implementation of this program, which shall be attached to the Agreement, shall not depend on other agreements between the Sides.

Article 11

Every six months the Sides shall jointly review the economic and social conditions at the enterprises pertaining to defense industry. The Sides shall jointly resolve all the problems arising during implementation of this Agreement.

Article 12

The Agreement is concluded for the term of five years and shall be automatically extended for another term unless one of the Sides notifies the other in a written form six months in advance of expiration about its intention to annul the Agreement.
The clauses of the Agreement can be amended only upon mutual consent of the Sides.
The Agreement was signed and initialed in Moscow on June 22, 1993.

 For the Government of the              For the Government of the
 Russian Federation                     Republic of Tatarstan

 V. Chernomyrdin 			M. Sabirov  

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