Diplomatic Cable | Ukraine

[Jay]

Dışişleri Bakanlığı Ministry of Foreign Affairs​

AUTHENTIC COMMUNIQUE OF THE OFFICE OF FOREIGN AFFAIRS Security Clearance: Secure and Encrypted ŞİFRELEME KORUMASI: KAPLUĞA​

[Recipient]: Embassy of the Ukraine, Ankara < Vaka > [Sender]: Office of European Affairs, Ministry of Foreign Affairs, Türkiye < TABatur@db.tr.gov > [Subject]: Confidential // Diplomatic Relations

Your Excellency, I hope this message finds you well. On behalf of the Ministry of Foreign Affairs of the Republic of Türkiye, I would like to express our sincere congratulations to Ukraine on the revival of stability and the positive strides being made toward recovery. This marks an important chapter for Ukraine, and we stand in full solidarity with your country during this time of progress and renewal. As you are aware, Türkiye views cooperation and security in the Black Sea region as vital to ensuring the peace and stability of the entire area. The lessons from past regional challenges, including the experiences stemming from Russia’s invasion of Türkiye in 2000, continue to remind us of the need for stronger regional collaboration. Such historical events underscore the critical importance of maintaining close, constructive relationships between our countries to safeguard peace and security in the region. In this regard, we consider Russia's mining of the Bosphorus during the invasion as a dangerous move that threatens the free flow of navigation and regional stability. We see it as a further reminder of the importance of our cooperation, which can serve as a bulwark against such destabilizing actions. Prime Minister Çiller has expressed her firm belief in Ukraine as a natural partner for Türkiye, and she is eager to work toward strengthening the bonds between our two nations. We are committed to deepening our diplomatic, economic, and security relations with Ukraine. If Your Excellency is available, we would be honored to meet with you at the Foreign Ministry to discuss the future of our bilateral relations. This meeting will provide an excellent opportunity to set the groundwork for a trade agreement and explore ways to build even stronger ties between our countries. We look forward to hearing from you and hope to meet at your earliest convenience. Regards, Tackin Batur Secretary of State, European Affairs Ministry of Foreign Affairs Türkiye

 

[Vaka]

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Encryption: TOP SECRET
Recipient: Tackin Batur,
Secretary of State, European Affairs, Ministry of Foreign Affairs, Türkiye Jay
Sender: Bohdan Kostiuk, Ukrainian Ambassador to Türkiye
Subject: Re: Diplomatic Relations

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Good morning Secretary Batur,

We thank you for the kind words as our government begins the long journey of regaining the trust of its people and becoming a respectable player on the geopolitical stage. Previous administrations often failed to properly maintain foreign relations and often neglected expanding trade from our own borders. Minister of Foreign Affairs, Arseniy Yatsenyuk and myself hope to rectify that.

Our cooperation with other Black Sea and European neighbors on matters of security, market integration, and research is our top priority. In the past this would have simply meant deferring to Russian intention. It is in my opinion, that in the past Ukraine was often looked at as a protectorate of Russia. This could not be further from the truth. As we emerge from the shadow of communism and the corrupt governments of the past, we are not looking for protectors. We are looking for partners. We feel that Türkiye kindred spirit in that regard. I hope that our two nations can work together closely to forge a new path built on peace, prosperity, and brotherhood.

I do humbly accept your invitation to the Foreign Ministry. President Tymoshenko appointed me the ambassador to Türkiye due to the highest level of importance she feels that our future relationship holds. I have full authority to speak on both matters of trade and defence along with a host of other topics.

I look forward to meeting you in person and hope that our conversations start a new era of friendship between our two nations.


Regards,

Bohdan Kostiuk
Ukrainian Ambassador to Türkiye
Ministry of Foreign Affairs of Ukraine

 

[Jay]

Dışişleri Bakanlığı Ministry of Foreign Affairs​

AUTHENTIC COMMUNIQUE OF THE OFFICE OF FOREIGN AFFAIRS Security Clearance: Secure and Encrypted ŞİFRELEME KORUMASI: KAPLUĞA​

[Recipient]: Embassy of the Ukraine, Ankara < Vaka > [Sender]: Office of European Affairs, Ministry of Foreign Affairs, Türkiye < TABatur@db.tr.gov > [Subject]: Confidential // Diplomatic Relations

Your Excellency, I warmly welcome your letter and thank you for your thoughtful and candid remarks. We are encouraged by the direction Ukraine is taking as it works to strengthen democratic governance, restore public trust, and reassert itself as a constructive and respected actor on the international stage. Türkiye recognizes the significance of this moment and views Ukraine’s efforts with sincere respect. We welcome the news of your appointment as Ambassador Extraordinary and Plenipotentiary to Türkiye and note the confidence placed in you by President Tymoshenko. On behalf of the Ministry of Foreign Affairs of the Republic of Türkiye, I am pleased to formally invite you to the Ministry for an initial meeting at your earliest convenience. The Ministry would like to begin exploratory talks on several priority areas, including: The establishment of a joint security mechanism for cooperation between the Turkish Navy and the Ukrainian Navy, particularly in the Black Sea region; Preliminary discussions toward a potential free trade agreement between our two nations; and Broader initiatives to enhance bilateral relations in political, economic, technological, and cultural domains. Türkiye shares your view that the future of our region and we would also welcome any additional agenda items Your Excellency may wish to raise during your visit, and we remain fully open to your proposals and priorities for discussion. I look forward to welcoming you to the Ministry in person and am confident that our forthcoming conversations will mark the beginning of a new and enduring chapter of friendship and cooperation between Türkiye and Ukraine. With highest consideration, Regards, Tackin Batur Secretary of State, European Affairs Ministry of Foreign Affairs Türkiye

 

[Vaka]

​

Location: Ukrainian Embassy, Ankara.
Date: December 29, 2007
Time: 0715​

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In a sun drenched office, Bohdan Kostiuk took his first sip of morning tea. It was beginning to cool off as he had let it linger too long just next to the keyboard of his computer. Along a very stately looking desk that would remind one the Resolute desk of White house fame, sat a Rex Begonia, a newly engraved desk plate naming him the Ambassador to Türkiye, and the large computer monitor that the man was reading intently.

His computer monitor showed the website of the Kyiv Independent; where the headline read, Politicians ready themselves for inspection. He smiled to himself as he sat the tea down and continued reading about the finer points of his government's new State Modernization & Anti-Corruption Act. “I wish I could be there to watch them squirm.” he said aloud as he closed the browser and shut the computer down. He checked his watch and realized the time; he made for his jacket. He was in a newer gray herring bone tweed vest and pants. After donning the jacket, there was a knock at the door.

“Ambassador Kostiuk?” a gruff voice asked with a slight Polish accent. “The car is ready for your meeting at the Foreign Ministry.”

“Perfectly on time as always, Dmytro.” quipped Ambassador Kostiuk as he grabbed his Gibson Messenger bag. He reached over his desk to take one last drink of his tea and made for the door. Opening it revealed a large man with shaved head and a squared well kept beard. His three piece, all business suit and ear piece clearly marked him clearly as embassy security. Ambassador Kostiuk patted the large man on the back and made his way towards the lobby, “Lets get going.”

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Location: Güvenpark, Ankara.
Date: December 29, 2007
Time: 0735
​

In the back seat of a BMW 335i, the ambassador took in the wonders of the city of Ankara. His newly adopted home for the time being was a feast for the senses. Its urban center was bustling with morning rush hour. Passing Güvenpark, with its perfectly manicured boulevards, and impressive statues; a group of street musicians seemed to be doing a near perfect rendition of She loves you. He rolled the window down lightly to hear them a bit better when he was met with the smell of a nearby street vendor preparing doner kebabs for lunch. He closed his eyes and leaned back as the car made its way to the Foreign Ministry.

Once they had arrived, Ambassador Kostiuk flanked by a few paces by Dmytro, made their way into the lobby of the Foreign Ministry.

Jay​

 

[Jay]

The gray curtain that had draped across the city of Ankara the past few days had finally let up and a clear sky blessed the city for the first time in weeks. The streets glistened as the lamps along the boulevards bending their light in soft reflections across the cobblestones. As Ambassador Kostiuk's vehicle approached the Ministry, A Turkish flag fluttered above the main roof. The motorcade slowed before the exterior security gate, two uniformed DMKK officer wearing their distinctive digital camo uniforms and armored vests stepped forward.

One approached the vehicle, scanning the license plate with a handheld device, while another reviewed the incoming vehicle’s itinerary from a rugged tablet linked to the Ministry's security network. Then a quiet mechanical hum that came as the massive iron gates slowly parted to permit the motorcade’s entry.

As the vehicle crossed through the gate, its tires rolled over an underground bomb detection scanner, a matte-black slab set into the pavement, bristling with sensors. On the far side of the gates, the palace’s wide front lawn stretched out like a manicured carpet, flanked by stone pathways and lines of tulips.

The vehicle curved around the circular drive and came to a stop before a tall flight of white steps, at the top of which stood Secretary Tackin Batur in a navy-blue suit with a thin silver tie, hands folded at his front.

When the doors opened and the Ambassador stepped out, Tackin would extend his hand.

“Welcome to the Foreign Ministry Ambassador,” Batur said in an English accent laced with Turkish, “It’s a pleasure to finally host you, here.”

When they walked inside, Batur would bring the Ambassador to the meeting room. Inside Batur would be joined by another diplomat and a civil servants from the Ministry as they took their seats across from the Ambassador. The Turkish diplomats had a small cup of red tea placed in front of everyone as they took their seats.

When everyone was seated, Batur would speak. "Ambassador firstly welcome to Ankara. We welcome your appointment to Türkiye and hope this will be the begining of a fruitful personal and professional relationship between us. Should you require anything while you're in Ankara, please note that my office is the appropriate point of contact."

Vaka

 

[Vaka]

Ambassador Kostiuk took his seat and listened earnestly as Secretary Batur welcomed him formally to his post here in Ankara. He scanned the faces of the other diplomats present at the meeting in an attempt to get a feel for the room. Thankfully, to his eyes at least, everyone seemed genuinely welcoming. The space, despite being a simple meeting room, had a warm feeling to it. He smiled before he began and hoped to find out soon what was in that red tea.

“Secretary Batur, you and your staff have been most welcoming.” He made sure to sit up straight and look towards everyone in the room before he continued, “My staff and I have had the great pleasure of getting to know the city of Ankara and some of its people in recent days. We have been absolutely overwhelmed with generosity and kindness. The welcome we have received is a testament to the hospitality of the Turkish people. I only hope that we can return the same in return.”

“I believe there is a true kinship between our people. We share an understanding of hardship and of hard work. Both the Turkish and Ukrainian peoples understand the dangers of totalitarian governments. Both have fought hard in the realm of political philosophy and have chosen democracy. This has given us the opportunity that stands before us here.The chance to pen formal relationships between our people. I am honored to be sitting at this table and relish the opportunity to take that chance.”

He took a moment after his preamble to gather his thoughts and get down to the finer details of treaties and partnerships, “I would like to start with asking what you thoughts on trade between our two nations?”

Jay

 

[Vaka]

Jay

 

[Jay]

"I am glad to hear you have received a warm welcome here in Ankara, and it is my hope that you and your staff will continue to find it to be your second home." Secretary Batur said with a smile as he opened his notebook, listening to the Ambassador speak.

"Ishare your sentiment, Your Excellency, and hope that our two nations can stand in contrast to the current global affairs of nihilism. Ukraine's story, as our own, is a reminder that the people have in them a special quality with a desire for liberty, peace, and prosperity. It is in that spirit that the Prime Minister would invite Ukraine to a free trade agreement with your brotherly Turkish neighbors and our hope to build a free and prosperous black sea."

Vaka

 

[Vaka]

Ambassador Kostiuk flashed a warm smile when he heard Secretary Batur share his sentiments regarding the free trade agreement. “That is wonderful to hear Secretary Batur and in hopes that this meeting would yield fruit, I took the liberty of producing an example of what a draft of the proposed trade agreement would look like.”

The Ambassador reached for his black brief case and swiftly produced a folder from within. After a short glance to make sure he had grabbed the proper paperwork, he handed the folder to Secretary Batur.

“This would be the tentative agreement between our two nations.” he would continue after a short sip of water, “We want to make sure that this works for the people of Türkiye and your administration. We are open to making any changes that you see fit.”

“It will of course have to be approved by our Verkhovna Rada, but they have been sent an advance copy and can quickly be informed of any changes that are necessary.”

The Ambassador wanted to make sure that the Turkish diplomats had enough time to digest the meat of the Trade agreement and would wait patiently to hear any feedback.

Once the right moment was found he would carefully ask the following question."Following along the lines of brotherhood between our two peoples, I would like to gauge your interest in an idea that Arseniy Yatsenyuk our Minister of Foreign Affairs had, A Bilateral Shipbuilding Cooperation Annex."

Jay

---

# UKRAINE–TÜRKİYE

## COMPREHENSIVE FREE TRADE AGREEMENT (UT-CFTA)

*(Draft Treaty Text – 2008)*

---

## PREAMBLE

The Government of Ukraine and the Government of the Republic of Türkiye (hereinafter referred to as “the Parties”):

Recognizing the mutual benefits of unrestricted trade and industrial cooperation;

Affirming their commitment to strengthening bilateral economic integration through the elimination of tariffs and quantitative trade restrictions;

Seeking to promote sustainable economic development, industrial modernization, and increased employment within both Parties;

Hereby agree as follows:

---

# SECTION I

## ELIMINATION OF TARIFFS

### Article 1 — Immediate Tariff Removal

Upon entry into force of this Agreement:

1. All customs duties, import tariffs, export tariffs, and charges having equivalent effect imposed by either Party on goods originating from the territory of the other Party shall be immediately and permanently eliminated.

2. Neither Party shall introduce or reintroduce any tariff, customs duty, or fiscal charge on goods originating from the territory of the other Party.

3. The provisions of this Article shall apply to:

* Industrial goods
* Agricultural products
* Raw materials
* Manufactured goods
* Defense-industrial dual-use goods
* Energy resources
* Petrochemical products
* Metallurgical outputs
* Grain exports
* Maritime and aerospace components

---

# SECTION II

## PROHIBITION OF QUANTITATIVE RESTRICTIONS

### Article 2 — Trade Volume Guarantees

1. Neither Party shall impose:

* Import quotas
* Export quotas
* Licensing requirements
* Seasonal import bans
* Minimum import price mechanisms

2. Any existing restrictions shall be abolished within 90 days of entry into force of this Agreement.

---

# SECTION III

## RULES OF ORIGIN

### Article 3 — Originating Goods

Goods shall qualify for tariff-free treatment where:

* Not less than 40% of their total value is produced within the territory of either Party; or
* Final assembly occurs within the territory of either Party using industrial inputs originating in the territory of either Party.

---

# SECTION IV

## ENERGY TRADE

### Article 4 — Energy Commodities

Tariff-free access shall explicitly apply to:

* Crude petroleum
* Refined petroleum products
* Natural gas
* Petrochemical derivatives
* Industrial lubricants
* Synthetic fuels

Energy transit infrastructure cooperation shall be protected from:

* Arbitrary regulatory interference
* Discriminatory taxation
* Administrative export limitations

---

# SECTION V

## AGRICULTURAL TRADE

### Article 5 — Grain & Agricultural Commodities

Ukraine shall receive guaranteed tariff-free access to Turkish markets for:

* Wheat
* Barley
* Corn
* Sunflower oil
* Rapeseed
* Soybean products

Türkiye shall receive reciprocal access for:

* Fruits
* Processed foods
* Textiles derived from agricultural inputs
* Fertilizers

---

# SECTION VI

## INDUSTRIAL GOODS

### Article 6 — Manufacturing Sector Access

All tariff-free provisions shall apply to:

* Automotive components
* Shipbuilding materials
* Machine tools
* Electrical equipment
* Aerospace components
* Metallurgical products
* Construction machinery
* Railway equipment

---

# SECTION VII

## DEFENSE-INDUSTRIAL TRADE

### Article 7 — Military & Dual-Use Goods

The Parties agree that:

1. Military equipment and defense-industrial components shall be eligible for tariff-free trade.

2. Defense procurement cooperation agreements shall not be subject to:

* Import duties
* Export licensing fees
* Customs handling tariffs

3. Such transactions may be exempted from public disclosure requirements pursuant to domestic law.

---

# SECTION VIII

## TECHNICAL STANDARDS

### Article 8 — Mutual Recognition

Each Party shall recognize:

* Industrial certifications
* Safety compliance standards
* Maritime engineering certifications
* Aerospace manufacturing approvals

issued by competent authorities of the other Party.

---

# SECTION IX

## DISPUTE RESOLUTION

### Article 9 — Joint Trade Commission

A Ukraine–Türkiye Trade Commission shall be established to:

* Review trade disputes
* Investigate alleged violations
* Recommend corrective actions

Binding arbitration may be conducted upon request of either Party.

---

# SECTION X

## ENTRY INTO FORCE

This Agreement shall enter into force:

Thirty (30) days following ratification by the Verkhovna Rada of Ukraine and the Grand National Assembly of Türkiye.

---

 

[Jay]

The Turkish delegation received the document in silence. Secretary Batur flipped through the pages first, scanning quickly while the others examined their copies in greater detail. The papers moved steadily around the table, each official marking sections and exchanging brief, quiet remarks as he continued his review.

After several moments, Batur gave a small nod.

“In principle, this appears appropriate,” he said. “I will, of course, need to consult with the Minister and have it escalated to the Prime Minister’s office, but we believe this could work.”

He paused, eyes settling on a note he had written in the margin. Tapping the page lightly with his pen, he looked up.

“Could you explain the shipbuilding cooperation annex in more detail?”

Vaka

 

[Vaka]

Ambassador Kostiuk leaned back for a moment. He knew that explaining the shipbuilding cooperation annex would take some time. He took a deep breath in before he began.

“The Shipbuilding Cooperation Annex would take both Ukraine and Türkiye from simply trading partners and join them into joint naval producers. Now what does this mean in essence? Instead of just selling steel or engines to one another, we would begin building ships together sharing yards, components, designs, and export markets.

Ukraine would bring heavy hull fabrication capacity, large dry docks, and engine manufacturing.

Türkiye would bring modern modular shipbuilding techniques, electronics and combat system integration, and the latest top of the line weapons capabilities.
Now establishing joint Naval productions rights would allow for coproduction of naval vessels, shared design modifications, licensed assembly in either country, and of course joint export marketing.

Let me give you an example. A Ukrainian hull could be constructed in Mykolaiv Shipyards, Then it would move to Istanbul shipyards to be fitted with Turkish electronics and weapon systems. Then the final construction and finishing touches could be completed in any available shipyard either Turkish or Ukrainian.

Shipbuilding depends on so many financially volatile components.Things like steel, marine diesel engines, radar, fire-control systems, communications suites.

The annex would lock in Ukrainian steel supply and Lock in Turkish naval electronics supply along with removing export restrictions on components.

We are also prepared to list Turkish Naval Ship designs in our Ukroboronprom catalog for world wide sale. With that being said, if the annex were to move forward, the profits from the sale of any naval vessels in the Ukroboronprom catalog would then be split 50/50 between Ukraine and Türkiye. This would include all Ukrainian vessels sold now that they would be sporting Turkish electronics.

Obviously we would have to make concessions concerning certain technology and intellectual properties that would need to remain totally state held. What tech can be transferred and what must remain sovereign etcetera. But this is the basis of the idea.

But this would signal not only to our people, but to the international community of the Deep Black Sea cooperation, Industrial trust, and Long-term alignment between Ukraine and Türkiye.”

After his long speech. Ambassador Kostiuk produced yet another folder from his briefcase. This tan folder had both Ukrainian and Turkish flags on the front labeled, Bilateral Shipbuilding Cooperation Annex.

"This is a very rough draft. But something I think we can work from."

ANNEX VII
Bilateral Shipbuilding Cooperation Annex
To the Agreement on the Elimination of Tariffs and Establishment of Free Trade
Between Ukraine and the Republic of Türkiye

PREAMBLE
Recognizing the strategic importance of maritime industrial capacity to the economic development and national security of both Parties;
Affirming the shared interest of Ukraine and the Republic of Türkiye in strengthening domestic shipbuilding industries through industrial cooperation, technological exchange, and coordinated production;
Desiring to promote the modernization, revitalization, and expansion of naval and civilian shipbuilding capacity within both Parties;
Acknowledging the mutual benefits of joint production, export cooperation, and integration of maritime supply chains;
The Parties hereby agree as follows:

SECTION I — DEFINITIONS
Article 1 — Definitions
For the purposes of this Annex:
“Naval Vessel” shall mean any maritime platform intended for military, paramilitary, coast guard, or governmental maritime service use, including but not limited to patrol vessels, corvettes, auxiliary support ships, amphibious vessels, and logistics ships.
“Commercial Vessel” shall mean any civilian maritime vessel constructed for cargo, passenger, offshore support, or industrial maritime use.
“Joint Production” shall mean the shared manufacture, assembly, integration, or modernization of maritime platforms by industrial entities located within the territory of either Party.
“Shipbuilding Industrial Entities” shall mean any state-owned or privately-owned shipyard, marine engineering firm, systems integrator, or subcontractor engaged in maritime vessel production.
“Maritime Systems” shall include propulsion systems, navigation systems, radar, communications equipment, electrical systems, weapons integration interfaces, and hull fabrication technologies.

SECTION II — INDUSTRIAL COOPERATION FRAMEWORK
Article 2 — Establishment of Joint Shipbuilding Programs
The Parties shall permit designated Shipbuilding Industrial Entities to enter into joint production agreements for the design, manufacture, assembly, modernization, and maintenance of Naval and Commercial Vessels.
Joint Production Programs may include:
a. Hull fabrication in the territory of one Party;
b. Integration of maritime propulsion systems in the territory of the other Party;
c. Installation of navigation, communications, or combat-support systems;
d. Final assembly and sea trials conducted in either Party’s territorial shipyards.
No tariffs, duties, or customs restrictions shall be imposed on intermediate maritime components transferred between Parties for the purposes of Joint Production Programs.

Article 3 — Reciprocal Shipyard Access
Each Party shall grant approved Shipbuilding Industrial Entities of the other Party access to:
a. Dry dock facilities;
b. Fabrication halls;
c. Assembly infrastructure;
d. Testing facilities;
e. Port infrastructure necessary for vessel outfitting and launch.
Such access shall be subject to national security review procedures as determined by the host Party.

SECTION III — TECHNOLOGY SHARING AND INTELLECTUAL PROPERTY
Article 4 — Technology Transfer
Maritime technologies may be transferred between Joint Production participants where:
a. Such transfer is necessary for program implementation;
b. The originating Party provides written authorization.
No Party shall compel the transfer of proprietary or classified maritime technologies without the explicit consent of the originating Party.

Article 5 — Intellectual Property Rights
Intellectual Property developed jointly under this Annex shall be considered jointly owned unless otherwise agreed by contract.
Improvements or modifications developed independently by one Party shall remain the sole property of that Party.
Royalty arrangements for licensed technology shall be determined through bilateral contractual agreements between participating entities.

SECTION IV — EXPORT COOPERATION
Article 6 — Joint Export of Maritime Platforms
Naval or Commercial Vessels produced under Joint Production Programs may be exported to third-party states.
Export approval shall require:
a. Consent of both Parties;
b. Compliance with applicable national export control laws.
The Parties may coordinate joint marketing, financing, and contract negotiations for the sale of jointly-produced vessels.

SECTION V — SUPPLY CHAIN INTEGRATION
Article 7 — Maritime Supply Chain Cooperation
The Parties shall:
a. Facilitate the uninterrupted transfer of marine-grade steel, propulsion components, electrical systems, and fabrication materials;
b. Eliminate export licensing requirements for intermediate shipbuilding inputs transferred under approved Joint Production Programs.
Shipbuilding materials transferred under this Annex shall be exempt from customs inspection delays unless national security concerns arise.

SECTION VI — FINANCIAL COOPERATION
Article 8 — Export Financing Mechanisms
The Parties may establish joint export credit facilities for the financing of maritime vessel contracts with third-party states.
Government-backed loan guarantees may be issued for:
a. Jointly-produced Naval Vessels;
b. Jointly-produced Commercial Vessels;
c. Maritime modernization services.

SECTION VII — SECURITY AND CONFIDENTIALITY
Article 9 — Protection of Sensitive Information
Any classified or sensitive technical information exchanged under this Annex shall:
a. Be protected in accordance with the national laws of the receiving Party;
b. Not be disclosed to third parties without prior written authorization.

SECTION VIII — IMPLEMENTATION
Article 10 — Joint Maritime Industrial Committee
A Joint Maritime Industrial Committee (JMIC) shall be established to:
a. Oversee implementation of Joint Production Programs;
b. Review export proposals;
c. Resolve industrial disputes;
d. Coordinate shipbuilding modernization initiatives.
The JMIC shall meet no fewer than twice annually.

SECTION IX — ENTRY INTO FORCE
Article 11 — Legal Effect
This Annex shall enter into force simultaneously with the Agreement on the Elimination of Tariffs and Establishment of Free Trade between Ukraine and the Republic of Türkiye and shall remain in force for the duration of said Agreement unless terminated in accordance with treaty provisions.


SECTION X — DEFENCE INDUSTRIAL SALES COOPERATION
Article 12 — Cooperation with Ukroboronprom
The Parties agree that, for the purposes of strengthening bilateral maritime industrial integration and export competitiveness, Ukroboronprom shall be designated as an authorized joint maritime export distribution entity under this Annex.
Ukroboronprom shall be permitted to:
a. Market;
b. Advertise;
c. Offer for sale;
d. Broker export contracts for;
Naval Vessels and Commercial Vessels manufactured, assembled, or licensed by Shipbuilding Industrial Entities located within the territory of the Republic of Türkiye.
Naval or Commercial Vessels produced by Turkish Shipbuilding Industrial Entities may be listed for international sale through Ukroboronprom-operated procurement, export, or commercial distribution platforms.

Article 13 — Profit Sharing Mechanism
In consideration for reciprocal industrial cooperation under this Annex, Ukroboronprom shall remit to the Government of the Republic of Türkiye a revenue share equal to:
Fifty percent (50%) of net realized profits
derived from the export sale of any Naval Vessel or Commercial Vessel listed for international sale through Ukroboronprom-operated export distribution systems.
The revenue sharing obligation described in Paragraph 1 shall apply to:
a. Maritime platforms manufactured by Turkish Shipbuilding Industrial Entities;
b. Maritime platforms manufactured by Ukrainian Shipbuilding Industrial Entities;
c. Jointly-produced maritime platforms developed pursuant to this Annex.
Net realized profit shall be defined as:
The total contract value of an exported maritime platform, less:
a. Direct production costs;
b. Integration and assembly costs;
c. Transportation and delivery expenses;
d. Contract-specific financing charges.

Article 14 — Remittance Procedures
Profit-share payments due to the Republic of Türkiye shall be:
a. Calculated on a per-contract basis;
b. Certified by the Joint Maritime Industrial Committee (JMIC);
c. Remitted within ninety (90) days following receipt of final contractual payment from the purchasing third-party state.
All financial records pertaining to such export contracts shall be subject to audit by the JMIC.

Article 15 — Legal Effect
The provisions contained within this Section shall constitute a binding financial cooperation mechanism under this Annex and shall remain in force for the duration of the Agreement unless amended or terminated by mutual written consent of both Parties.

END OF ANNEX VII SUPPLEMENTAL PROVISIONS

Jay