PROTOCOL OF THE SIXTH MEETING OF THE GEORGIAN-RUSSIAN COMMISSION FOR ECONOMIC COOPERATION

Tbilisi, 16 December 2005

Chaired by: Nogaideli Z. Т., Prime-Minister of Georgia, Georgian Co-Chairman of the Commission

Co-chaired by: Levitin, I. E., Minister of Transport of the Russian Federation, Russian Co-chairman of the Commission

The meeting was attended by members of the Georgian and Russians sides of the Georgian-Russian Commission on Economic Cooperation (hereinafter Commission) and invited responsible representatives of ministries, agencies and institutions of Georgia and the Russian Federation.

In compliance with approved agenda, the following questions were considered at the meeting:

1. On implementation of decisions of the Commission Co-Chairmen Meeting Protocol of July 8 2005.

Having heard and discussed information about the progress in implementing decisions of the Co-Chairmen Meeting Protocol of the Georgian-Russian Commission on Economic Cooperation of July 8 2005, the Commission notes that the sides have conducted significant work for implementing the decisions of the Co-Chairmen Meeting Protocol and have addressed most of the issued raised at the meeting.

2. On the status and perspectives of Trade and Economic Cooperation

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The Georgian side supports affiliation of the Russian Federation in the World Trade Organization (WTO) provided that the Russian side resolves issues raised by the Georgian side in the course of bilateral negotiations and discussed in the format of multilateral negotiations for Russian Federation’s accession to WHO. In particular, the Russian side should bring operation of customs control points of Gantiadi-Adler and Roki-Nizhniy Zaramag in compliance with paragraph 5, Article 1 of the ‘Agreement between the Government of Georgia and the Government of the Russian Federation about customs control points on the border’ (of 8 October 1993).

The Russian side is ready to take additional measures to promptly remove problems in customs regulation and administration pertaining to freight movement between the two countries, thus providing for full compliance of its foreign trade regime with provisions of the WTO agreements.

The Russian side considers it necessary to continue work for implementing the Agreement between the Government of the Russian Federation and the Government of Georgia On Economic Restoration in the Zone of Georgian-Ossetian Conflict in the Zone of Georgian-Ossetian Conflict and on Refugee Return of 23 December 2000.

The Russian side stresses the importance of providing for unimpeded transit of people and goods along the Transcaucasus motor road.

The Georgian side considers it necessary to take concrete measures for preventing illicit cooperation of some Russian banks with illegal financial institutions on the territory of Abkhazia, Georgia. Such uncontrolled and illegal activities of Russian banks factually promote favorable conditions for laundering of illicit proceeds and terrorist financing, which it its turn contradicts the commitments that Russia and Georgia have as FATF Members.

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3. On cooperation in the area of transport

Georgian-Russian cooperation in the area of transport develops in a constructive way, as confirmed by the achieved agreements to address issues in the area of rail, sea and other transportations:

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- works have been accomplished to examine the condition of infrastructure on the Gantiadi-Station Ingiri railway section in Abkhazia, Georgia, for further restoration of through railway traffic between Sochi and Tbilisi.

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The Commission resolves:

3.1. To support proposals of the Russian Railways JSC and Georgian Railways LLC for joint elaboration of a financial model for an International Consortium with a view of attracting investments to conduct infrastructure rehabilitation works on the railway section between station Veseloe and station Ingiri.

3.2. The Parties to set up a working group of representatives of all stakeholder ministries and agencies for implementing state procedures related to the provision of unimpeded through traffic on the Sochi-Tbilisi railway.

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Z. T. Nogaideli

Prime Minister of Georgia,Georgian Co-chairman of the Commission

I. E. Levitin

Minister of Transport, Russian Federation,Russian Co-chairman of the Commission

(Archive of the Georgian Ministry of Economic Development)