AGREEMENT in the form of an Exchange of Letters between the European Coal and Steel Community and the Russian Federation extending the Agreement between the European Coal and Steel Community and the Russian Federation on trade in certain steel products for the period 1 January to 30 June 1997

Sir,

1. I have the honour to refer to the Agreement between the European Coal and Steel Community and the Russian Federation on trade in certain steel products signed on 7 December 1995, and to propose that, pending the completion of negotiations on a new bilateral steel agreement and of the formal procedures for its entry into force, the present ECSC Agreement should be extended by a period of up to six months (i.e. from 1 January to 30 June 1997). If the new agreement enters into force before 1 July 1997, the present ECSC Agreement shall expire on the day on which the new Agreement enters into force.

2. The quantitative limits for the period 1 January to 30 June 1997 shall be those shown in the Annex to this letter. These limits represent two thirds of the Russian Federation's quantitative limits for 1996 and are without prejudice to the level at which quantitative limits for 1997 might be agreed with the Russian Federation under a new bilateral agreement. The product categories shall be the same as in 1996, with the addition of a new subcategory within category SA1 - coils. This subcategory, SA1 (a), shall cover hot-rolled coils for re-rolling (the CN codes of which are as follows: 7208 37 10, 7208 38 10 and 7208 39 10).

3. Export licences issued by the Russian Federation during 1997 in accordance with the provisions of this Exchange of Letters and counted against the limits set out in the Annex hereto will be counted against the overall limits established for 1997 in the new agreement when the latter enters into force.

4. The Commission will inform the Russian Federation of any changes in the combined nomenclature (CN) in respect of products covered by the ECSC Agreement in accordance with the provisions of Article 1 of Protocol A.

5. In conclusion, I have the honour to propose that, if the above is acceptable to your Government, this letter and your confirmation shall together constitute an agreement between the European Coal and Steel Community and the Russian Federation, which shall enter into force on the first day of the month following the day on which the parties have notified each other that the procedures necessary to this end have been completed (1).

For the Commission

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Sir,

I have the honour to acknowledge receipt of your letter of . . . which reads as follows:

'Sir,

1. I have the honour to refer to the Agreement between the European Coal and Steel Community and the Russian Federation on trade in certain steel products signed on 7 December 1995, and to propose that, pending the completion of negotiations on a new bilateral steel agreement and of the formal procedures for its entry into force, the present ECSC Agreement should be extended by a period of up to six months (i.e. from 1 January to 30 June 1997). If the new agreement enters into force before 1 July 1997, the present ECSC Agreement shall expire on the day on which the new agreement enters into force.

2. The quantitative limits for the period 1 January to 30 June 1997 shall be those shown in the Annex to this letter. These limits represent two thirds of the Russian Federation's quantitative limits for 1996 and are without prejudice to the level at which quantitative limits for 1997 might be agreed with the Russian Federation under a new bilateral agreement. The product categories shall be the same as in 1996, with the addition of a new subcategory within category SA1 - coils. This subcategory, SA1 (a), shall cover hot-rolled coils for re-rolling (the CN codes of which are as follows: 7208 37 10, 7208 38 10 and 7208 39 10).

3. Export licences issued by the Russian Federation during 1997 in accordance with the provisions of this Exchange of Letters and counted against the limits set out in the Annex hereto will be counted against the overall limits established for 1997 in the new agreement when the latter enters into force.

4. The Commission will inform the Russian Federation of any changes in the combined nomenclature (CN) in respect of products covered by the ECSC Agreement in accordance with the provisions of Article 1 of Protocol A.

5. In conclusion, I have the honour to propose that, if the above is acceptable to your Government, this letter and your confirmation shall together constitute an agreement between the European Coal and Steel Community and the Russian Federation, which shall enter into force on the first day of the month following the day on which the parties have notified each other that the procedures necessary to this end have been completed.`

I have the honour to confirm that my Government is in agreement with the contents of your letter.

For the Government of the Russian Federation

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(1) This agreement will enter into force on 1 March 1997.