Canadian Treaty Series
E100651 - CTS 1992 No. 12
PROTOCOL BETWEEN THE GOVERNMENT OF CANADA AND THE GOVERNMENT OF THE RUSSIAN FEDERATION CONCERNING QUESTIONS RELATING TO CREDITS FOR DELIVERIES OF CAPITAL GOODS AND SERVICES TO THE RUSSIAN FEDERATION FROM CANADA
The Government of Canada and the Government of the Russian Federation, for the purposes of broadening bilateral trade and economic co-operation, have agreed as follows:
The Government of Canada grants the Russian Federation a Line of Credit in the amount of 100 million Canadian dollars for the purchase of capital goods and services.
The Vnesheconombank and the Export Development Corporation shall, at the earliest possible moment, conclude an agreement concerning this Line of Credit for the purchase of capital goods and services.
The Government of the Russian Federation confirms that the Vnesheconombank has been duly authorized to enter into this Line of Credit Agreement as borrowing agent for and on behalf of the Russian Federation, pursuant to Decree No. 2524-I of March 16, 1992, of the Presidium of the Supreme Soviet of the Russian Federation.
The Government of the Russian Federation guarantees the execution of payments under the Line of Credit Agreement by the Vnesheconombank as a borrowing agent, and in case of any failure of the Vnesheconombank to execute its obligations under the above mentioned Agreement, to indemnify these payments to the Export Development Corporation if the necessity arises.
The Credit will be used for financing up to eighty five percent of the cost of capital goods and/or services to be imported from Canada, pursuant to contracts between Canadian exporters and Russian importers. Contracts to be financed under the Credit must be approved by the Government of The Russian Federation and EDC on behalf of the Government of Canada.
Allocation of the credit may be made within 24 months from the date of signature of the Line of Credit Agreement by the Vnesheconombank and the Export Development Corporation.
The length of the repayment term of the credit shall be established for each contract, depending inter alia on the type of capital goods and/or services purchased and the amount of the purchase, and shall consist of from 3 to 8.5 years.
All other conditions relating to the granting and use of the credit shall be provided for in the Line of Credit Agreement between the Vnesheconombank and the Export Development Corporation.
As the credit is used and additional financing requirements emerge, consideration will be given to accommodation of those requirements, as circumstances permit.
Both Governments shall take the necessary measures to ensure that the present Protocol is duly implemented.
The present Protocol shall enter into force from the date of its signature.
DONE at Ottawa on the 28th day of April 1992 in two copies in the English, French and Russian languages, all three texts being equally authentic.
FOR THE GOVERNMENT OF CANADA
FOR THE GOVERNMENT OF THE RUSSIAN FEDERATION