On Production Sharing Agreements

Original Language Title: О соглашениях о разделе продукции

Read the untranslated law here: http://pravo.gov.ru/proxy/ips/?doc_itself=&infostr=x&backlink=1&fulltext=1&nd=102038941

RUSSIAN FEDERATION FEDERAL LAW on production sharing agreements Adopted by the State Duma of December 6, 1995 year approved by the Federation Council of the year December 19, 1995 (text as amended by the federal laws of 07.01.99 N 19-FZ;
from 18.06.2001 N 75-FL; from 06.06.2003 N 65-FZ;
from 06/29/2004 N 58-FZ; from 29.12.2004 N 199-FZ;
from 30.12.2008 N 309-FZ; from 19.05.2010 N 89-FZ;
from 19/07/2011 N 248-FZ; from 29.06.2015 N 205-FZ) this federal law passed in the development of the legislation of the Russian Federation in the field of subsoil use and investment activities, establishes the legal basis of relations arising in the implementation of Russian and foreign investment in search, exploration and exploitation of minerals in the territory of the Russian Federation, as well as on the continental shelf and (or) within the limits of the exclusive economic zone of the Russian Federation on the terms of production sharing agreements.
Chapter i. General provisions article 1. Relations regulated by the present Federal Law 1. This federal law regulates relations arising in the process of conclusion, implementation and termination of production sharing agreements and defines basic terms and conditions of such agreements.
2. Relationship not regulated by this federal law, including the use of land and other natural resources, as well as the specific features of application hereof, subject to the limitations or prohibitions on ownership of extracted precious metals, natural precious stones, radioactive materials and other metals and products shall be governed by the laws of the Russian Federation on mineral resources, other laws and other normative legal acts of the Russian Federation.
3. Relations arising in the process of searching, prospecting and mining of mineral raw materials of the production section, as well as its transportation, handling, storage, processing, use, implement or otherwise, are governed by production sharing agreement concluded in accordance with this federal law.
The rights and obligations of the parties under production sharing agreement with civil-law character, shall be determined in accordance with this federal law and the civil legislation of the Russian Federation.
4. If the legislation of the Russian Federation stipulates other rules than those stipulated by this federal law, in the field of regulation of relations, referred to in paragraph 1 of this article, the provisions of this federal law.
Article 2. Production sharing agreement 1. Production sharing agreement (hereinafter referred to as the agreement) is a contract under which the Russian Federation provides a subject of entrepreneurial activity (hereinafter-Investor) on a reimbursable basis and for a fixed term of exclusive rights on a quest exploration, mining mineral resources at the site subsoil, specified in the agreement, and doing related work, and the investor is obliged to perform the holding specified works at his own risk and expense. The agreement defines all necessary terms associated with the use of mineral resources, including the conditions and procedure for the section of output between the parties to the agreement in accordance with the provisions of this federal law.
2. Conditions of use of the mineral resources established in the agreement shall be governed by the laws of the Russian Federation.
Right to use subsoil plot may be restricted, suspended or terminated under the terms of an agreement concluded in accordance with the legislation of the Russian Federation.
(Paragraph as amended by federal law from 07.01.99 N 19-FZ)
3. lists of subsoil areas, the right to use the terms of production may be granted in accordance with the provisions of this federal law, shall be established by federal laws. (As amended by the federal laws of 07.01.99 N 19-FZ; from 06.06.2003 N 65-FZ) of projects these federal laws, as well as the draft federal law on amendments and additions to these federal laws are made by the State Duma of the Federal Assembly of the Russian Federation the right to legislative initiative and are considered by the State Duma of the Federal Assembly of the Russian Federation in the presence of the conclusions of the Government of the Russian Federation and of the outcome of the legislative (representative) bodies of constituent entities of the Russian Federation in the territories which are appropriate subsoil areas. (As amended by the Federal law of 07.01.99 N 19-FZ) in lists of subsoil areas included subsoil areas for which there is a justification for the Government of the Russian Federation of the feasibility of introducing such subsoil areas in these lists. (New paragraph supplemented by federal law from 07.01.99 N 19-FZ)

With respect to located on the territory of traditional residence and economic activity of the small-numbered indigenous peoples of the subsoil plot requires a decision by the legislative (representative) body of a constituent entity of the Russian Federation on the territory of which is this plot of the subsoil, adopted by taking into account the interests of the small-numbered indigenous peoples, as well as the corresponding local government. (New paragraph supplemented by federal law from 07.01.99 N 19-FZ) is permitted to provide conditions of production no more than 30 percent of the explored and posted State balance of mineral reserves. (New paragraph supplemented by federal law from 07.01.99 N 19-FZ)

4. the grounds for inclusion in lists of subsoil areas, the right of use which can be granted on conditions of production is the lack of ability of geological study, exploration and mining on the other stipulated by legislation of the Russian Federation subsoil conditions other than conditions of production.
Confirmation of the absence of such a possibility is to hold the auction on granting the right to use subsoil plot on other terms than the product section, in accordance with the law of the Russian Federation "on the bowels" (as amended by the Federal law of March 3, 1995 N 27-FZ) and recognition of the auction failed due to lack of participants.
In case if subsoil user which subsoil plot was granted for use on other terms than the product section wish to conclude against subsoil plot production sharing agreement, auction, provided for by the second paragraph of this paragraph may be carried out only after the decision on early termination of right to use subsoil plot on the application of subsoil users. While the terms of the auction, provided for in the second subparagraph of this paragraph, and the terms of the auction for the right to conclude an agreement under paragraph 1 of article 6 hereof, subject to the concurrence of the subsoil user provides for compensation of expenses of former subsoil users.
License holder before the date of the auction shall submit to the authorities issuing license for subsoil use, report on the evaluation of the property complex, is inextricably related to the right of subsoil use, produced by an independent appraiser, carrying out their activity in accordance with the legislation of the Russian Federation, and the draft agreement on the sale of property complex in whole or part.
In case of disagreement by the person who submitted the request for participation in the auction, with a report assessing the property complex, is inextricably related to the right of subsoil use, and (or) other terms and conditions of the contract for the sale of property complex in whole or part of the final terms of the said Treaty shall be established by the courts.
In case of confirmation of the lack of geological study, exploration and mining on subsoil conditions that do not involve agreement on subsoil plot can be included in the list of sites, the right of use which can be granted on conditions of production, if there are defined by the Government of the Russian Federation the following conditions: If the subsoil is able to maintain the jobs for the cityformation organization and cessation of the development of the site subsoil will lead to negative social consequences;
If the bowels is necessary for engaging in the economic turnover of minerals that are found on the continental shelf of the Russian Federation and in the regions of the far North and similar areas and are located in areas where there are no human settlements, transport and other infrastructure;
If this field requires the use of special high-cost technologies for the extraction of substantial numbers of mineral reserves, located in difficult geological conditions.
(New paragraph 4 is supplemented by federal law from 07.01.99 N 19-FZ; as amended by federal law from 06.06.2003 N 65-FZ) 5. (Deleted-the Federal law from 06.06.2003 N 65-FZ)
(New paragraph 5 supplemented by federal law from 07.01.99 N 19-FZ)
6. Within the powers defined by the Constitution of the Russian Federation and federal laws, the constituent entities of the Russian Federation shall exercise the legislative regulation of its participation in production sharing agreements when using subsoil areas on their territories. (Paragraph 4 as subclause 6 as amended by federal law from 07.01.99 N 19-FZ)
7. Agreements concluded before the entry into force of this federal law, shall be executed in accordance with the defined conditions. The provisions of this Federal Act shall apply to these agreements to the extent that its application does not contradict the terms of such agreements and does not limit the rights acquired and undertaken by investors in accordance with those agreements. (Paragraph 7 as subclause 5 as amended by federal law from 07.01.99 N 19-FZ)

Article 3. The parties to the agreement 1. Parties to the agreement (hereinafter referred to as the parties) are: Russian Federation (hereinafter referred to as the State) on whose behalf the agreement is opposed by the Government of the Russian Federation or authorised bodies; (As amended by the Federal law dated 29.12.2004, N 199-FZ) investors-legal entities and established on the basis of the contract about joint activity and do not have the status of legal person in amalgamation of legal persons exercising their own attachment, loan or borrowed funds (property and (or) property rights) in the search, exploration and exploitation of mineral raw materials and are users of the subsoil on the terms of the agreement. (As amended by federal law from 06.06.2003 N 65-FZ)
2. If an investor in the agreement is not having the status of a legal entity Association of legal persons, members of this Association have shared rights and shared responsibilities under the agreement.
Article 4. Use of the subsoil areas under conditions of production 1. The right to use the sites of subsoil under conditions of production available to the investor based on the agreement concluded in accordance with this federal law.
2. Plot the subsoil is the investor in accordance with the terms of the agreement. When this license to use subsoil plot, which certifies the right to use subsoil plot, specified in the agreement, shall be issued to the investor in the manner prescribed by the legislation of the Russian Federation on subsoil, within 30 days from the date of signing of the agreement. The specified license shall be issued for the duration of the agreement and is due for renewal or reissue or ceases to have effect in accordance with the terms of the agreement. (As amended by the Federal law dated 29.12.2004, N 199-FZ)
3. If an investor is not having the status of legal person, Association of legal persons, the licence referred to in paragraph 2 of this article is issued by one of the parties to such a merging with the indication in this license that the party acting on behalf of the Association, as well as with all other participants of Association.
Article 5. Duration of the agreement 1. Duration of the agreement shall be authenticated by the parties in accordance with the legislation of the Russian Federation in force on the date of agreement.
2. The agreement on the initiative of the investor, as well as, subject to fulfilment of the obligations shall be extended for a period sufficient for completion of economically viable mineral production and ensure the rational use and protection of mineral resources. The conditions and procedure of such extension shall be determined by agreement. When the extension of the agreement referred to in paragraph 2 of article 4 hereof shall be subject to a royalty-based license for the duration of the agreement transferring the authorities granting this license.
Chapter II. The conclusion and EXECUTION of AGREEMENTS, Article 6. The order of the conclusion of the agreement 1. Agreement may be concluded with the winner of the auction, conducted in the manner prescribed by the legislation of the Russian Federation, and the date agreed by the parties, but no later than one year from the date of the establishment of the Commission, referred to in paragraph 3 of this article. The winner is the bidder who proposes the highest price for the right to conclude the agreement. (As amended by federal law from 06.06.2003 N 65-FZ) terms and conditions of auction shall be provided for participation of Russian legal entities in implementing agreements in fractions, identified by the Government of the Russian Federation. (New paragraph supplemented by federal law from 07.01.99 N 19-FZ; as amended by federal law from 06.06.2003 N 65-FZ; federal law dated 29.12.2004, N 199-FZ) concerning subsoil areas located on the territories of traditional Habitat and economic activity of the small-numbered indigenous peoples, terms and conditions of auction shall be made for the payment of appropriate compensation for violation of traditional nature use. (New paragraph supplemented by federal law from 07.01.99 N 19-FZ; as amended by federal law from 06.06.2003 N 65-FZ) initial conditions of auctions are based on technical-economic calculations performed on the instructions of the State bodies responsible for conducting contests or auctions. (New paragraph supplemented by federal law from 07.01.99 g. N 19-FZ; as amended by federal law from 06.06.2003 N 65-FZ) of the agreement shall be concluded on the basis of the provisions laid down in the legislation of the Russian Federation. Agreement related to the use of the subsoil areas located on the continental shelf of the Russian Federation and (or) within the limits of the exclusive economic zone of the Russian Federation, as well as changes and additions made to these agreements are approved by the separate federal laws. (As amended by federal law from 06.06.2003 N 65-FZ)
2. (deleted in accordance with Federal Act from 06.06.2003 N 65-FZ)

3. development of subsoil conditions, drafting agreements and conducting negotiations with the investor for each object of subsoil use are carried out by the Commission, established in accordance with the procedure established for the creation of inter-ministerial coordination and advisory bodies made up of federal bodies of executive power, with the participation of the executive authorities of the constituent entities of the Russian Federation. The Commission is made not later than six months from the date of announcement of the results of the auction. (As amended by the federal laws of 06.06.2003 N 65-FZ; from 29.06.2004 N 58-FZ), the Commission is composed of representatives of the federal bodies of executive power, including representatives of the federal authority in the management of the public fund and (or) its territorial units, the representatives of the Executive authority of the relevant constituent entity of the Russian Federation. In cases, if provided by the subsoil areas are located on territories of traditional Habitat and economic activity of the small-numbered indigenous peoples, the Commission includes representatives of the federal authority for socio-economic development of the northern territories of the Russian Federation, as well as representatives of relevant organs of local self-government. In case of need to the work of that Commission involved industrial and scientific organizations, as well as experts and consultants.
Funding related to the development of the auction conditions, drawing up feasibility studies and preparation of the draft agreement, is financed by a portion of the funds received from the implementation of the agreement. (As amended by federal law from 06.06.2003 N 65-FZ)
(Paragraph as amended by federal law from 07.01.99 N 19-FZ)
4. the signing of the agreement on the part of the State is exercised by the Government of the Russian Federation. (As amended by the Federal law dated 29.12.2004, N 199-FZ)
(Second paragraph void-the Federal law dated 29.12.2004, N 199-FZ)
(Paragraph three, federal law expired from 29.12.2004 N 199-FZ)
5. the signing of the agreement, the date agreed by the parties is carried out upon completion of between authorized representatives of the parties to the negotiations which must be agreed with all the necessary conditions of the agreement, non-mandatory terms and conditions of the auction. While the terms of the agreement must not contradict the mandatory conditions of the auction. (As amended by federal law from 06.06.2003 N 65-FZ)
6. Decision on the signing of the agreement on the part of the State was adopted by the Government of the Russian Federation. (As amended by the Federal law dated 29.12.2004, N 199-FZ) Article 7. Conditions of work 1. Agreement work and activities (hereinafter-the agreement) are carried out in accordance with the programs, projects, plans and estimates which are approved in the manner determined by the agreement.
2. The work under the agreement are carried out subject to the requirements of the legislation of the Russian Federation, as well as in compliance with the approved in the prescribed manner the standards (regulations) for the safe conduct of work, protection of mineral resources, environmental and population health Wednesday. While the agreement provides for the obligation of the investor: (as amended by federal law N 309-FZ) granting Russian legal entities the right to participate in the agreement as contractors, suppliers, carriers, or in another capacity on the basis of contracts (contracts) with investors; (As amended by the Federal law of 07.01.99 N 19-FZ) to attract workers who are citizens of the Russian Federation, the amount of which shall be not less than 80 per cent of all involved employees, attract foreign workers only in the initial stages of works by agreement or, in the absence of workers-citizens of the Russian Federation the relevant qualifications; (new paragraph supplemented by federal law from 07.01.99 N 19-FZ), acquisition of necessary for geological exploration , production, transportation and processing of mineral resources of technological equipment, technical equipment and materials of Russian origin in the amount of not less than 70 per cent of the total value of acquired (including leases, leasing and otherwise) in each calendar year to perform under the agreement, the technical equipment, tools and materials, cost of acquisition and use of which will be reimbursed to the investor compensation products. However, for the purposes of this federal law, equipment, tools and materials are of Russian origin, provided that they are made by Russian legal entities and (or) citizens of the Russian Federation on the territory of the Russian Federation from nodes, components, structures and components, not less than 50 per cent in value produced on the territory of the Russian Federation Russian legal entities and (or) citizens of the Russian Federation (new paragraph supplemented by federal law from 07.01.99 g. N 19-FZ; as amended by federal law from 06.06.2003 N 65-FZ)

(New paragraph supplemented by federal law from 07.01.99 N 19-FZ; expelled-the Federal law from 06.06.2003 N 65-FZ) implementation of measures aimed at preventing the harmful effects of these environmental Wednesday, as well as the Elimination of the consequences of such effects; (As amended by federal law N 309-FZ) liability insurance for damages in the event of an accident resulting in a harmful influence on the environment Wednesday; (As amended by federal law N 309-FZ) Elimination of all installations, facilities and other property on completion of the agreement, as well as to clean up the contamination of the territory in which the work was carried out under the agreement.
Parties should include in the agreement a condition that not less than 70 per cent in terms of technological equipment for the mining, transport and processing (if the agreement so provides), purchased and (or) used by the investor to perform work under the agreement must be of Russian origin. This provision does not apply to the use of the main pipeline transportation, construction and acquisition which is not covered under the agreement. (As amended by federal law from 06.06.2003 N 65-FZ) Parties should include in agreements that at least some parts of the process equipment for mining and processing (Agreement), purchased by the investor, must be carried out on the territory of the Russian Federation. (As amended by federal law from 18.06.2001 N 75-FZ) provisions of this article shall come into contradiction with the principles of the World Trade Organization, in the event of the accession of the Russian Federation to the World Trade Organization are ineffective or should be brought into line with these principles, on the dates and in the manner provided for documents of the World Trade Organization and the agreement on the accession of the Russian Federation to the World Trade Organization. (The paragraph is supplemented by federal law from 06.06.2003 N 65-FZ)
3. When performing work on the agreement on the objects located on the territories of traditional Habitat and economic activity of the small-numbered indigenous peoples, the investor is obliged to take the measures provided for in the legislation of the Russian Federation on protection of original habitats Wednesday and traditional way of life of the small-numbered indigenous peoples, as well as to ensure the payment of appropriate compensation in cases and by the procedure established by the Government of the Russian Federation. (As amended by the Federal law of 07.01.99 N 19-FZ)
4. organisation of the performance of the work under the agreement, including the accounting and reporting in accordance with the provisions of article 14 of this federal law, shall be carried out on the instructions of the investor or operator investor agreement. As an operator, a subject which should be limited to the Organization of these works can be created for these purposes, an investor in the territory of the Russian Federation affiliates or entities or engaged by an investor for these purposes, legal entities, and foreign legal entities performing activities on the territory of the Russian Federation. When the investor bears property responsibility before the State for the actions of the operator agreement for their own actions. (As amended by the Federal law of 07.01.99 N 19-FZ)
5. upon completion of certain stages of prospecting and mineral exploration investor is obliged to return the land, referred to it in accordance with the terms of the agreement. The sizes returned by plots, as well as the procedure, terms and conditions of their return are determined by the agreement.
6. Geological and techno-economic information on objects, on which work is being carried out under the agreement and envisaged mining must be presented for State expert review in the order and volume in accordance with the legislation of the Russian Federation.
7. In order to coordinate the implementation of the agreement by the parties must be provided for the establishment of a Steering Committee, composed of an equal number of representatives from each party. Membership, rights and obligations of the Managing Committee as well as the conduct of its work is defined by the agreement. The procedure of appointment of the representatives of the State Control Committee, their powers, as well as the procedure for the preparation and adoption of decisions by such persons on behalf of the State shall be established by the Government of the Russian Federation. (As amended by the federal laws of 07.01.99 N 19-FZ; from 29.12.2004 N 199-FZ) Article 8. Production section 1. Products shall be divided between the State and the investor in accordance with the agreement, which should include (with the exception of the cases stipulated in paragraph 2 of this article) the conditions and procedure:

determination of total output and its cost. When this output is recognized quantity of products from mining and quarrying products contained in the actual quantities produced (extracted) from the bowels (waste, losses) mineral (rock, liquid and other compounds), first in quality of the relevant national standard, the regional standard, an international standard or, in the absence of the standards for the individual mineral mined-standard organization obtained investor in progress under the agreement and reduced the number of technological losses within regulations; (As amended by the Federal Act of 19/07/2011 N 248-FL) determine the portion of the output that is passed to the property investor to reimburse his expenses for implementation of the agreement (hereinafter referred to as the compensating products). While the compensation ceiling products should not exceed 75 per cent and mining on the continental shelf of the Russian Federation-90 per cent of total output. The composition of the costs to be reimbursed to the investor at the expense of the compensation products, shall be determined by agreement, in accordance with the legislation of the Russian Federation;
the section between the State and the investor a lucrative product, defined as generated when executing agreements products excluding part of the product, cost the equivalent of which is used for paying tax on mineral extraction, production and the compensation for the reporting (tax) period;
the transfer of the State's investor owned by him in accordance with the terms of the agreement, part of the production or its equivalent value;
an investor, owned by him in accordance with the terms of the agreement.
(Paragraph as amended by federal law from 06.06.2003 N 65-FZ)
2. in some cases, the section of output between the State and the investor in accordance with the agreement can be carried out in a different order than that which is set out in paragraph 1 of this article. The agreement shall provide for conditions and procedures: determination of total output and its value;
the section between the State and an investor in output or the value of goods produced and equivalent definitions of State-owned and investor shares. The proportions of this section shall be determined by agreement depending on the geologojekonomicheskoj and value evaluations plot, technical project, a feasibility study agreement. Investor's share in output should not exceed 68 percent; (As amended by federal law from 06.06.2003 N 65-FZ) transfer of State owned by him in accordance with the terms of the agreement, part of the production or its equivalent value;
an investor, part owned by him in accordance with the terms of the agreement.
The conclusion of the agreement in accordance with the terms and conditions of production shall be provided by the terms of the auction. (As amended by federal law from 06.06.2003 N 65-FZ)

3. the agreement may involve only one way to partition products, as provided for in this article. Agreement cannot provide for the transition from one mode of production established in this article, the other set by this article, as well as the replacement of one product to another section of the method. (Para supplemented by federal law from 06.06.2003 N 65-FZ) (Article in the Editorial Office of the Federal law from 18.06.2001 N 75-FZ) Article 9. The property right of the investor to manufactured products 1. Part of the production, which is under the terms of the agreement, shares an investor owns property investor. (As amended by federal law from 18.06.2001 N 75-FZ)
2. mineral raw materials coming under the terms of the agreement, the property investor, may be exported from the customs territory of the Russian Federation under the conditions and in the manner as defined by this agreement, without quantitative restrictions of exports, except for the cases stipulated by the Federal law "on State regulation of foreign trade activities".
Article 10. Distribution and sale of Government share of output 1. Implementation of the State share of production is carried out in accordance with the federal laws.
Distribution of equivalent value of manufactured products, as well as other State income as a result of production, between the Russian Federation and the Russian Federation on the territory of which is provided by the use of subsoil plot is carried out in accordance with the procedure established by federal laws. Income from implementation of the agreement, obtained with the subsoil areas of internal waters, the territorial sea, the continental shelf of the Russian Federation shall be included in the federal budget.

(Revision of the Federal law dated 29.12.2004, N 199-FZ)
2. (repealed-the Federal law dated 29.12.2004, N 199-FZ) 3. (Repealed-the Federal law dated 29.12.2004, N 199-FZ), Article 11. Ownership of the property (as amended by the Federal law of 29.06.2015 N 205-FZ dated December 30, 2008) 1. Property, newly established or acquired by an investor and used them to perform under the agreement, is owned by an investor, unless otherwise provided by agreement.
Ownership of the property can go from the investor to the State from the day when the value of the specified property fully recovered, or from the date of termination of the agreement or otherwise agreed by the parties the day under the conditions and pursuant to the procedure provided for in the agreement. During the term of this agreement to an investor is given the exclusive right to use such property on a pro bono basis for agreement and investor bears the burden of content in its enjoyment of property and the risk of accidental loss or accidental damage.
In the case of a transition to State ownership of the property this property refers to the federal property. The procedure for future use of the property is determined by the Government of the Russian Federation. (As amended by the Federal law dated 29.12.2004, N 199-FZ)
2. (repealed-federal law 29.06.2015 N 205-FZ) Article 11-1. Geological information on subsurface when implementing agreements 1. The owner of the primary geological information on subsoil and interpreted geological information on subsurface received while performing work under the agreement, the Russian Federation.
2. Ownership of the material medium containing geological information on subsurface received while performing work under the agreement, belongs to the Russian Federation.
3. Subject to conditions of confidentiality stipulated in the agreement, the investor has the right to freely and gratuitously use geological information about the subsurface in order to perform work on the agreement.
4. Conditions for the use of geological information on subsurface received while performing work under the agreement shall be determined by agreement, in accordance with the legislation of the Russian Federation.
(Article supplemented by federal law from 29.06.2015 N 205-FZ) Article 12. Transportation, storage and processing of mineral raw materials 1. Investor has the right to free access to objects on a contractual basis of pipelines, as well as the right to free use on a contractual basis, pipeline and other modes of transport, storage facilities and processing of mineral raw materials without any discriminatory conditions.
2. The investor within the performance of the work under the agreement has the right to construct objects for storage, processing and transportation of mineral raw materials, ownership of which shall be determined by agreement, subject to the provisions of article 11 hereof.
Article 13. Taxes and fees when the implementation of the agreement 1. When implementing the agreement applies special procedure for calculation and payment of taxes and fees set by the tax code of the Russian Federation and other legislative acts of the Russian Federation on taxes and fees.
2. in carrying out the agreement, the investor pays a one-time payments for subsoil use if the events set out in the agreement and license (bonuses), annual payments for contractual waters and seabed, payable in the manner prescribed by the agreement, in accordance with the legislation of the Russian Federation on the date of signature of the agreement, the fee for participation in the competition (auction), licence fee, recurring payments for subsoil use (rentals), compensation for State spending on mineral exploration , compensation for damage caused as a result of the performance of the work under the agreement of the small-numbered indigenous peoples of the Russian Federation in their places of traditional residence and economic activity. The amount of the payments, as well as the timing of their payment shall be determined by the terms of the agreement. (As amended by the Federal law dated 19.05.2010 N 89-FZ), while the procedure for determining the amounts of compensation expenditure on mineral resources exploration, compensation for damage caused as a result of the performance of the work under the agreement of the indigenous peoples of the Russian Federation in their places of traditional residence and economic activity shall be established by the Government of the Russian Federation.
Admission referred to in this paragraph, payments to the budgets of different levels of budget system of the Russian Federation shall be determined by the budgetary legislation of the Russian Federation.
(Article in the Editorial Office of the Federal law from 06.06.2003 N 65-FZ) Article 14. Accounting and reporting

1. the integration of financial and economic activity of investor in carrying out works on the agreement is carried out for each individual agreement and separately from such integration in the performance of other activities not related to the agreement. This accounting procedure shall be determined in accordance with the legislation of the Russian Federation. (As amended by the federal laws on 18.06.2001. N 75-FZ; from 06.06.2003 N 65-FZ)
2. Accounting and reporting during the work on the agreement are maintained in the currency of the Russian Federation (LCY) or in foreign currency. If accounting is carried out in a foreign currency, the reporting provided by the public authorities, should contain data calculated as in the foreign currency and in rubles. All data calculated in foreign currency must be converted into rubles at the exchange rate of the Bank of Russia on the date of reporting.
Article 15. Bank accounts and foreign exchange regulations For the performance of the work under the agreement, the investor must have a special bank account in rubles or foreign currency in banks on the territory of the Russian Federation and (or) on the territory of a foreign State, used exclusively to carry out the works. (As amended by federal law from 06.06.2003 N 65-FZ)
(Paragraphs 2 and 3 are excluded-the Federal law from 06.06.2003 N 65-FZ) Article 16. Transfer of rights and obligations under the agreement 1. Investor has the right to fully or partially their rights and obligations under the agreement to any legal person or any citizen (physical person) only with the consent of the State, provided that these persons have adequate financial and technical resources and experience of management activities necessary for the performance of the work under the agreement.
2. Transfer of rights and obligations under the agreement is made in writing, through a special Act, which is an integral part of the agreement, in the manner and within the period defined in the agreement and is accompanied by a corresponding replacement of licence on subsoil use within 30 days from the date of signature of the specified act.
3. With the consent of the State investor can use his property and property rights as security for its obligations under contracts concluded in connection with the performance of the agreement, in accordance with the requirements in the civil legislation of the Russian Federation.
Article 17. Stability of the terms of the agreement 1. The terms of the agreement, which shall remain binding for the entire period. Changes to the agreement are permitted only with the consent of the parties, as well as at the request of one of the parties in case of a significant change in circumstances, in accordance with the Civil Code of the Russian Federation.
Changes in the condition of the agreements made by agreement of the parties, entered into force in the same manner as the original agreement. (As amended by federal law from 06.06.2003 N 65-FZ)
2. If during the term of the agreement by the Russian Federation legislation, the legislation of the constituent entities of the Russian Federation and legal acts of local self-government bodies will set rules which adversely affect commercial activity results in the framework of the agreement, the agreement is amended to ensure investor commercial results that could be obtained by applying at the time of conclusion of the agreement in force of the legislation of the Russian Federation, constituent entities of the Russian Federation legislation and legal acts of local self-government bodies. The procedure for making such changes is determined by the agreement.
The provision for amending the terms and conditions of the agreement shall not apply, if the legislation of the Russian Federation amends the standards (regulations, rules) for the safe conduct of work, protection of the subsoil surrounding the Wednesday and the health of the population, including in order to bring them into line with similar standards (regulations, rules) adopted and accepted in international practice. (As amended by federal law N 309-FZ), Article 18. State guarantees of investor's rights 1. The investor is guaranteed protection of property rights and other rights acquired and implemented them in accordance with the agreement.
2. The investor is not subject to regulatory legal acts of the federal bodies of executive power, as well as the laws and other normative legal acts of the constituent entities of the Russian Federation and legal acts of local self-government bodies, if these acts restrict investor rights, acquired and implemented them in accordance with the agreement, with the exception of the provisions of the relevant oversight bodies, which are issued in accordance with the legislation of the Russian Federation in order to ensure the safe conduct of work protection of mineral resources, environment, Wednesday, public health, and also to ensure public safety and State security. (As amended by federal law N 309-FZ) Article 19. Control over the execution of the agreement

1. State control over performance of the agreement shall implement the Federal State authorities in accordance with their competence, together with bodies of State authorities of the constituent entities of the Russian Federation.
2. authorized representatives referred to in paragraph 1 of this article, the bodies supervising the implementation of the agreement, have the right to unimpeded access to the objects of the agreement, as well as documentation relating to the conduct of specified works, solely for the purposes of the exercise of the functions of the monitoring agreement.
3. the Government of the Russian Federation is in the State Duma of the Federal Assembly of the Russian Federation, at the same time as the draft federal law on the federal budget for the current year on the outcome of the work on realization of production-sharing agreements.
The report is forwarded to the Court of audit of the Russian Federation and is considered by the State Duma of the Federal Assembly of the Russian Federation only on presentation of the accounts Chamber of the Russian Federation of its opinion.
(Para supplemented by federal law from 07.01.99 N 19-FZ), Article 20. Responsibility of the parties to the agreement 1. The Parties shall be liable for non-fulfilment or improper fulfilment of their obligations under the agreement in accordance with the terms of the agreement in compliance with the civil legislation of the Russian Federation.
2. The conditions and procedure for the allocation between the Russian Federation and the relevant subject of the Russian Federation expenditures to meet the requirements of the investor for damages in case of nonperformance or improper performance by a State of its obligations under the agreement, as well as the relationship of the federal executive authorities and executive authorities of the constituent entities of the Russian Federation in considering charges against the State investor requirements for execution by the State of its obligations under the agreement are established by the treaties referred to in paragraph 1 of article 10 hereof.
Article 21. Termination of the agreement 1. The agreement shall terminate upon the expiry or early by agreement of the parties, as well as on other grounds and in the manner provided for by the agreement in accordance with the legislation of the Russian Federation in force on the date of the signing of the agreement. Termination by agreement of the parties to enter into force in the same manner as the original agreement, with the exception of auction procedures.
2. the agreement, whose provisions on how the investor's assessment in accordance with articles 8 and 13 of the present Federal law does not take effect for one year from the date of signing of the agreement, shall terminate upon the expiry of one year from the date of its signature without complying with the conditions provided for in paragraph 1 of this article.
3. the subsoil Plot, on which agreement is terminated on the basis provided for in paragraph 2 of this article may be granted in the conditions section of the products only after the auction, on granting the right to use subsurface resources on other terms than the product section, and recognition of the auction failed due to lack of participants, as well as subject to the provisions of articles 2 and 6 of this federal law.
(Article in the Editorial Office of the Federal law from 06.06.2003 N 65-FZ), Article 22. Dispute resolution Disputes between the State and an investor associated with execution, termination and invalidity of agreements shall be settled in accordance with the terms of the agreement in court, the arbitral tribunal or the arbitral tribunal (including in international arbitral institutions).
Article 23. State immunity in agreements concluded with foreign citizens and foreign legal persons as may be prescribed in accordance with the legislation of the Russian Federation State refusal from judicial immunity, immunity in respect of securing action and execution and (or) award.
CHAPTER III. Final clauses article 24. International treaties of the Russian Federation if an international treaty of the Russian Federation stipulates other rules than those provided for in this federal law, the rules of the international treaty shall apply.
Article 25. The entry into force of this federal law this federal law shall enter into force on the day of its official publication.
Article 26. Bringing of normative legal acts in accordance with this federal law 1. The President of the Russian Federation, the representative and executive bodies of State power of the constituent entities of the Russian Federation within three months to bring its normative acts in compliance with this federal law.

2. The Government of the Russian Federation, Bank of Russia within three months to bring its normative acts in compliance with this federal law, as well as to provide, in the prescribed manner to the State Duma of the Federal Assembly of the Russian Federation proposals to amend legislative acts of the Russian Federation changes and amendments deriving from this federal law.
3. The Government of the Russian Federation in the first quarter of 1996 year, make to the State Duma of the Federal Assembly of the Russian Federation, a draft federal law on approving the list of deposits covered by this federal law.
Russian President Boris Yeltsin in Moscow, the Kremlin December 30, 1995 N 225-FZ