Russian Federation ratifies CIS agreement on free trade in services

Economy

The document was signed by the heads of government of Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan.

Russian Federation ratifies CIS agreement on free trade in services
Russian President Vladimir Putin signed the law ratifying the Agreement on Free Trade in Services, Establishment, Activities, and Implementation of Investments among CIS countries. The document was published on the legal information portal, TASS reports.

The document was signed in Sochi on June 8, 2023, by the heads of government of Armenia, Belarus, Kazakhstan, Kyrgyzstan, Russia, Tajikistan, and Uzbekistan. The agreement was developed in implementation of the decision of the Council of CIS Leaders on the Free Trade Zone Treaty dated October 18, 2011. As noted in the accompanying documents, the agreement will ensure the sustainable development of the CIS free trade zone for services and goods, as well as favourable conditions for economic growth of the states, which will stimulate the improvement of the living standards of the populations.

The agreement does not affect relations between the member states of the Eurasian Economic Union (EAEU), which have more liberal trade conditions. At the same time, the document establishes a predictable regime for trade in services and investments between the EAEU participants, as well as Tajikistan and Uzbekistan.

Uzbekistan, not being a member of the World Trade Organization (WTO), had previously not taken on obligations regarding trade in services with Russia. Now, Russian service providers are guaranteed access to business, communication, construction, educational, financial, and other sectors.

The agreement also provides a unified standard for the protection of investors and their investments in the markets of the states. This includes guarantees against expropriation, compensation for damages, and procedures for resolving disputes between investors and the state receiving their investments.

The agreement is concluded for an indefinite period, while each party retains the right to withdraw from it. For investments made before the date of a party's withdrawal from the agreement, its provisions will remain in force for that country for 10 years from the date of withdrawal.

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