Prime Minister of the Russian Federation : On the Agreement between the Government of the Russian Federation and the Government of the Republic of Belarus on Issuing a State Loan to the Republic of Belarus

On the Agreement between the Government of the Russian Federation and the Government of the Republic of Belarus on Issuing a State Loan to the Republic of Belarus

In accordance with the Federal Law On International Contracts of the Russian Federation, the Resolution approves a draft Agreement between the Government of the Russian Federation and the Government of the Republic of Belarus on Issuing a State Loan to the Republic of Belarus, hereinafter referred to as the Agreement, submitted by the Russian Finance Ministry.

The Resolution instructs the Russian Finance Ministry and the Foreign Ministry, as well as other relevant executive bodies, to hold talks with the Belarusian party and upon reaching an agreement to sign the above Agreement on behalf of the Russian Federation with a provision allowing for the possibility of minor alterations.

The document envisions issuing a state loan in the amount of $450 million to Belarus in 2014 on condition that liabilities are met on paying interest and the main liability is paid on the previous state loans issued by the Russian Federation, as well as the loans obtained from the EurAsEC Anti-Crisis Fund.

The Belarusian party is to repay the loan by transferring to the Russian party the amounts in US Dollars in 14 equal six-month instalments on 15 January and 15 July of each year with the first payment due on 15 January 2017.

The Belarusian party is to pay 4% annual interest on the loan. The interest is calculated as of the date of receiving the loan and is paid in US Dollars on 15 January and 15 July each year, with the last interest payment executed simultaneously with the final repayment of the body of the loan.

In case of overdue payments on any liabilities of the Belarusian party on loans issued by the Russian party exceeding 180 days, the Russian party is entitled to demand an immediate and full repayment of the remaining outstanding debts under the Agreement, and these outstanding debts will incur a 6% interest per annum from the date of the arrears until full repayment of the debts.

The Agreement will come into effect upon receiving the last written notification on the Parties' fulfilling internal procedures for its enforcement, and is to be valid until the obligations under the Agreement are met in full by both Parties.

The Resolution will serve to enhance the trade and economic cooperation between the Russian Federation and the Republic of Belarus.