Draft. Annex 1 To Protocol #10 of  the JCC Session dated July 23, 1999

AGREEMENT Between the Government of the Russian Federation and the Government of Georgia on Cooperation in Restoration of Economy in the Georgian-Ossetian Conflict Zone and Return of Refugees

The Government of the Russian Federation and the Government of Georgia, hereinafter refereed to as “the Parties”, Pursuant to the provisions of the Agreement on Principles of Settlement of Georgian-Ossetian Conflict, adopated on June 24 1992 in Sochi, as well as the Memorandum on Measures Aimed at Guarantying Security and Strengthening Mutual Trust between the Parties in the Georgian-Ossetian Conflict, (May, 1996 in Moscow), and the Protocol of the meeting devoted to comprehensive settlement of the Georgian-Ossetian conflict, (March, 1997 in Moscow),

Stating, that the commitments to provide the financial means pursuant to the provisions of the Agreement between the Government of the Russian Federation and the Government of Georgia on Economic cooperation of the regions located in the conflict zone , adopted on September 24, 1993, have not been implemented to the full extent. (The Russian side allocated 19,100 million rubles, which equals 4,460 million US Dollars,  the Georgian side allocated ???million GEL, which equals ??? million US Dollar),   

In an effort to economic revival and development of the regions

suffered as a result of the Georgian-Ossetian conflict, and in order to create conducive conditions for return of refugees and internally displaced persons to the places of their permanent residence,

Agreed on the following:

Article 1

The Parties acknowledge the necessity for further financing of restoration works in the Georgian-Ossetian conflict zone and shall work out, in cooperation with representative of South Ossetian Side:

 - Inter-Governmental program of cooperation and restoration of economy in the Georgian-Ossetian conflict zone;

- The Inter-Governmental program of repatriation, accommodation, integration and re-integration of refugees.

The Parties shall undertake measures to secure implementation of the aforementioned programs, while inviting international organizations to participate in their implementation.

The Georgian Side, in full conformity with norms of the international law, shall secure full respect of human rights of refugees and internally displaced persons returning to their places of permanent residence.

The Parties shall contribute to endeavors undertaken by International organizations in realization of social, economic and humanitarian programs in the regions suffered as a result of the conflict.

Article 2

the Parties, In order to meet the pledged commitments in full conformity with this Agreement, shall make the best use of existing capabilities to attract financial and other resources, contribute to attraction of investments, favorable credits and subsides in the Georgian-Ossetian conflict, including inviting international and foreign organizations, the “third” countries, as well as promote the creation of joint enterprises, development of direct economic ties between different forms of property ownership, including industrial cooperative enterprises located in the conflict zone.

Article 3

The Parties shall support initiatives of the administrative-territorial bodies, enterprises and organizations of the Russian Federation and Georgia on rendering support to the South Ossetian Side in the process of restoration works and with a view of further economic development, shall take all efforts to secure bringing it financial means, including means available as a result of tax-free investments and other privileges envisaged by the legislation of the Parties. 

Article 4

The Parties underline the sheer necessity of settlement of the issue related to payment by the consumers, living in the conflict zone, of their debts to the Russian Joint Stock Company “EAS Russia” for provision of electricity in 1998  as well as securing current payment for provisions of electricity, as a very important factor for rehabilitation process and return of refugees.

The Georgian side commits itself to timely funding of the current payments in an volume and ration previously agreed upon between the Georgian and South Ossetian sides and on restructuring the debt for provision of electricity from the Russian Federation.

Article 5

The current Agreement may be complemented by protocols, clarifying the mechanism of its implementation.

Coordination and Control over the implementation of programs envisaged by this Agreement shall be carried out by the Joint Control Commission on Settlement of the Georgian-Ossetian conflict.

Article 6

This Agreement shall enter in force upon signing.

Made in  ---   on ----- 1999 in two original copies in Russian and Georgian Languages, and both these copies are of equal validity.

On behalf of the Government of the Russian Federation

On behalf of the Government of Georgia

The term “refugee” includes the notion of “internally displaced person” for the respective Parties.

(Archive of the OSCE Mission to Georgia/Translation from Russian)