Energy Charter Treaty

62 [Letter from the European Communities to Russia The purpose of this letter is to confirmthat with regard toDecisionNo 3 of the Energy Charter Treaty (ECT) concerning transfer of payments and especially to the footnote 51 to this Decision, Article 105 in our Partnership and Cooperation Agreement (PCA), signed at Corfu, 24 June 1994, shall not have the effect of disapplying Article 16 of the ECT in relation to Decision No 3. I propose that this letter and your reply will establish a formal agreement between us. Letter from the Russian Federation I took note of your letter of 17 December 1994, the purpose of which is the confirmation that with regard to Decision N° 3 of the Energy Charter Treaty (ECT) concerning transfer of payments, and especially to the footnote 52 to this Decision, Article 105 of the Agreement on Partnership and Cooperation establishing a partnership between the Russian Federation, of the one part, and the European Communities and their Member States, of the other part (PCA), signed at Corfu on 24 June 1994, shall not have the effect of disapplying Article 16 of the ECT in relation to Decision N° 3. I agree that your letter and this reply will establish a formal agreement between us.] 53 (1) Each Contracting Party shall with respect to Investments in its Area of Investors of any other Contracting Party guarantee the freedom of transfer into and out of its Area, including the transfer of: (a) the initial capital plus any additional capital for the maintenance and development of an Investment; (b) Returns; (c) payments under a contract, including amortisation of principal and accrued interest payments pursuant to a loan agreement; (d) unspent earnings and other remuneration of personnel engaged from abroad in connection with that Investment; 51 Editor’s note: This footnote which was deleted from the final text reads: “This Decision has been drafted on the understanding that Contracting Parties which intend to avail themselves of it and which have also entered into Partnership and Cooperation Agreements with the European Union and its member states containing an article disapplying those Agreements in favour of this Treaty will exchange letters of understanding which have the legal effect of making Article 16 of this Treaty applicable between them in relation to this Decision. The exchange of letters shall be completed in good time prior to signature.” 52 Id. 53 Exchange of Letters with the European Communities on Decision No 3 of the Energy Charter Treaty.