||CONSOLIDATED TREATIES & INTERNATIONAL AGREEMENTS
CURRENT DOCUMENT SERVICE:
STATE DEPARTMENT DOCUMENT NUMBER: 93-177
AGREEMENT BETWEEN THE UNITED STATES AND RUSSIA REGARDING INTERNATIONAL
TRADE IN COMMERCIAL SPACE LAUNCH SERVICES
Signed at Washington September 2, 1993.
Entered into force September 2, 1993.
CTIA DOCUMENT NUMBER: 7363.000
The Government of the United States of America and the Government of
the Russian Federation (hereinafter the "Parties"),
Recalling the contributions of all space-faring nations in developing space
Taking note of the importance of access to space for peaceful purposes,
Recognizing the utility of developing multilateral principles for government
involvement in commercial space launch activities,
Bearing in mind that the Russian space launch sector is in the process of
transition to operation based on market principles, and
Desiring to facilitate early Russian entry into the international commercial
space launch market in a manner that encourages market-oriented reform in
the Russian economy, including its space-launch sector; permits Russian
entities to offer commercial space launch services to international customers
at fair and reasonable prices, consistent with market principles; and does
not disrupt the international market for commercial space launch services,
Have agreed as follows:
For the purposes of this Agreement,
||"Commercial space launch services" means the commercially
offered or provided services to launch into space any spacecraft
or satellite, including but not limited to communications satellites,
for an international customer;
||"Russian space launch service providers" means any entity,
or agent or instrumentality acting on its behalf, permitted
by the Government of the Russian Federation to provide commercial
space launch services or the space launch vehicles for such
||"International customer" means: any person; or any kind of
corporation, company, association, venture, partnership, or
other entity, whether or not organized for pecuniary gain, or
privately or governmentally owned or controlled; or any governmental
body, excluding the Government of the United States of America
and the Government of the Russian Federation; or any intergovernmental
organization or quasi-governmental consortium, including but
not limited to INTELSAT, INMARSAT and their respective legal
successors, that is the ultimate owner or operator of a spacecraft
or satellite to that will deliver the spacecraft or satellite
to orbit for use by such ultimate owner or operator.
||to agree or commit to the provision of commercial space
launch services such that a launch is effectively removed
from competition in the international market, or
||any such agreement or commitment.
||"Comparable commercial space launch services" means commercial
space launch services offered to launch a spacecraft of the
weight class that is the subject of a launch competition, taking
into consideration specific factors that may be considered when
evaluating the price, terms and conditions of such services,
including, but not limited to, intended orbit, risk management,
financing, satellite lifetime on orbit and integration costs.
||"Inducements" means any incentive offered or provided to influence
the purchase of commercial space launch services, including,
but not limited to, the provision of any resources of commercial
value unrelated to the launch service competition as well as
offers to participate under favorable conditions in the implementation
of defense and national security policies and programs, and
development assistance policies and programs.
||"Unfair business practices" includes the making of any offer,
a payment, a promise to pay, a promise or offer of anything
of value or to authorize the payment of anything of value, or
any promise to make such payment, to any official, individual,
or any other entity for the purpose of obtaining or retaining
business for or with, or directing business to, any person;
including making payment to a person while knowing that all
or a portion of the payment will be offered, given or promised,
directly or indirectly, to any official, individual or any other
entity for the purposes of obtaining or retaining business.
||"Geosynchronous earth orbit" means an orbit approximately
19,400 nautical miles (35,900 kilometers) above the surface
of the earth at the equator in which a payload completes one
Earth orbit in a 24-hour period, holding a fixed position relative
to the Earth.
||"Geosynchronous transfer orbit" means a temporary orbit used
to reposition a spacecraft or satellite into a geosynchronous
||"Low earth orbit" means and orbit approximately 100 to 1,000
nautical miles (185 to 1,850 kilometers) above the surface of
||"Principal payload" means an telecommunications satellite
or, in the absence of a telecommunications satellite, any other
spacecraft or combination of spacecraft.
This Agreement applies to commercial space launch services for launches
to geosynchronous earth orbit or geosynchronous transfer orbit. Except
for the pricing provision set forth in Article V, paragraph 2, this
Agreement applies to commercial space launch services for launches
to other orbits and suborbital launches. Nothing in this Agreement
applies to launches of payloads for military purposes or for use in
the non-commercial, civilian space programs of either Party, including
programs using spacecraft or satellites made by and primarily for
the use of members of the Commonwealth of Independent States and which
are executed in accordance with existing cooperative agreements.
||The Parties shall endeavor to ensure the application of market
principles to international competition among providers of commercial
space launch services, including the avoidance of below-cost
pricing and unfair trade practices.
||Neither Party shall engage in practices that distort competition
among providers of commercial space launch services, including,
but not limited to:
||the provision of grants or subsidies that distort the
production or operation costs for supplies of commercial
space launch systems;
||the provision of inducements to international customers
or potential international customers for commercial space
||the offering of additional services such as insurance
or reflight guarantees except on a par with prevailing
rates and practices in international markets for comparable
||the provision of government-supported financing for
commercial space launch vehicles or services except in
accord with the terms of the OECD's "Arrangement on Guidelines
for Officially-Supported Export Credits."
||The Parties, including their agents and instrumentalities,
shall not engage in unfair business practices to secure contracts
to provide commercial space launch services. Each Party shall
also endeavor to ensure that any entity or organization, subject
to its jurisdiction whether or not owned or controlled by that
Party, shall not engage in corrupt business practices to secure
contracts to provide commercial space launch services.
||During the term of this Agreement, Russian space launch service
providers may contract with international customers to provide
commercial space launch services for the launch of up to eight
(8) principal payloads (in addition to the INMARSAT 3 satellite)
to geosynchronous earth orbit or geosynchronous transfer orbit,
except that the Russian space launch service providers may not
conduct more than two (2) such launches in any twelve-month
period. The Russian Federation will ensure a proportionate distribution
of contracts by Russian space launch service providers withing
any two-year period.
||Up to four launches of principal payloads to geosynchronous
earth orbit or geosynchronous transfer orbit may consist of
two principal payloads on a single launch vehicle.
The Parties shall jointly evaluate each such launch on a case-by-case
basis and, taking into account the current situation in the
international commercial space launch market, may decide by
mutual agreement to treat that launch as a single principal
payload for the purpose of Article IV, paragraph 1.
||During the term of this Agreement, Russian space launch service
providers may contract to provide commercial space launch services
for up to three (3) launches of satellites to low earth orbit
for the Iridium system.
||In the course of consultations under Article VII, paragraph
1, the Parties shall consider jointly on a case-by-case basis
and decide by mutual agreement on proposals by Russian space
launch service providers for commercial suborbital launches
and additional commercial launches to orbits other than geosynchronous
earth orbit, geosynchronous transfer orbit, and low-earth orbit
for the Iridium system, where there are competing comparable
commercial space launch services.
||The contractual terms and conditions, including the price,
of commercial space launch services offered or provided by Russian
space launch service providers to international customers shall
be comparable to the terms and conditions, including prices,
for comparable commercial space launch services offered by commercial
space launch services providers from market economy countries,
including the United States.
||A bid or offer by Russian space launch service providers to
provide commercial space launch services at a price more than
seven and one-half (7.5) percent below the lowest bid or offer
by a commercial space launch service provider from a market
economy country, including the United States, shall require
special consultations between the Parties under Article VII,
paragraph 2, of this Agreement.
||Notwithstanding any other provision of this Agreement, the
Parties shall negotiate and conclude prior to each launch a
satisfactory technology safeguards agreement for each payload
subject to a United States export license. Such technology safeguards
agreement will be intended to facilitate the issuance of United
States export licenses and shall include requirements relating
to the control of the transfer of missile technology.
||Any application for a United States export license will be
reviewed on a case-by-case basis consistent with United States
laws and regulations. Nothing in this Agreement shall be construed
to mean that the United States is constrained from taking appropriate
action with respect to any United States export license. The
United States will use its best efforts to assure, consistent
with United States laws and regulations, authorization and completion
of technology transfers subject to this Agreement.
||The Parties shall hold regular consultations on an annual
basis to review and examine implementation of the Agreement
and market developments in commercial space launch services.
||The Parties shall hold special consultations on an urgent
basis, prior to the conclusion of a contract for commercial
space launch services if possible, at the request of either
party, if that Party has reason to believe that such contract
or pending contract is inconsistent with the terms of this Agreement.
||If, after consultations provided for under this Article, either
Party determines that the provisions of this Agreement have
been violated by the other Party, each Party reserves its right
to take any action permitted under its national laws and regulations.
||If, in the course of the annual reviews provided in paragraph
1 of this Article, the Parties agree that the market for commercial
space launch services has developed more favorably than anticipated
and if each Party is satisfied with the other Party's compliance
with terms of this Agreement, the quotas set forth in Article
IV of this Agreement may be increased, by written agreement
of the Parties.
||The Parties shall exchange all information, including prices,
terms and conditions offered for commercial space launch services,
that is necessary to monitor implementation of the Agreement
and carry out regular and special consultations. Such information
shall be provided promptly, in any case no later than 30 days
after receipt of a request by the other Party for such information,
except that such information need not be provided prior to bids
for commercial space launch services.
||Parties shall protect the confidentiality of information exchanged,
shall not use any such information for pecuniary gain and shall
not release such information to third parties.
||TERM AND REVIEW
||This Agreement shall enter into force upon signature and remain
in force until December 31, 2000.
||The Parties shall review the implementation of this Agreement
after three years from its entry into force. Following such
review, the Parties may, by mutual written agreement, terminate
||Either party may request negotiations to amend the terms of
this Agreement to take account of developments in the international
market for commercial space launch services and progress in
the transition of Russia's space launch sector to a market basis.
||Any contract entered into pursuant to this Agreement will
continue to be subject to the provisions of this Agreement even
if the duration of the contract extends beyond the expiration
date of this Agreement. Termination of this Agreement will not
affect contracts entered into pursuant to this Agreement.
DONE at Washington this second day of September, 1993, in duplicate in the
English and Russian languages, both tests being equally authentic.
FOR THE GOVERNMENT OF THE UNITED STATES OF AMERICA:
FOR THE GOVERNMENT OF THE RUSSIAN FEDERATION: