Annex 4 To Protocol #7 of the JCC Session dated February 13, 1997

DECISION OF THE JOINT CONTROL COMMISSION (JCC) FOR THE GEORGIAN-OSSETIAN CONFLICT SETTLEMENT on the process of implementing the “agreement between the government of russia and georgia on economic rehabilitation of regions in the zone of the georgian-ossetian conflict” (1993, moscow).

(Babenko, Shavlokhov, Velichko, Machavariani, Matyushov)

1. Assign the workgroup to prepare proposals about the possibilities of attracting investments in the zone of the Georgian-Ossetian conflict taking into consideration the possibility to use on the first place:

contacts between the Russian and Georgian economic subjects;

interrelated government loans of Russia to Georgia;

the possibilities of international communities and private firms.

2. Take into account the statement of the Georgian side about the fact that in the 1997 draft state budget allocation of funds for the rehabilitation works in the regions of the Georgian-Ossetian conflict was considered in the amount of GEL 1 million, and the statement of the Russian side about allocating for the above-noted purposes in the draft budget of Russia allocation of 9 billion Rubles.

3. Due to the expiration of the term of effectiveness of the inter-state Agreement dated September 14, 1993, the JCC deems it necessary to ask the parties to develop the principles and forms of proceeding with the further liquidation of the social and economic consequences of the Georgian-Ossetian conflict. The relevant information about the stated issues shall be presented to the JCC prior to may 15, 1997.

4. Due to the threat of full cutting of the electrical energy to consumers in the zone of the Georgian-Ossetian conflict during Winter, the JCC supports the request of the South Ossetian side to the Governments of Russia and Georgia about mutual consideration of the issue regarding the payment of arrears of consumers in the zone of conflict to RAO Russia.

On behalf of the Russian side

On behalf of the Georgian side

On behalf of the South Ossetian Side

On behalf of the North Ossetian side

In the presence of: the OSCE Mission

(Archive of the Staff of the State Minister of Georgia for Conflict Resolution Issues/in Russian)