Article 16 Recoveries

16.1 The Managing Authority shall take all appropriate measures to recover funds unduly spent together with any interest on late payment from any beneficiary by any means, including by offsetting. The Russian Federation and the Member State commit to cooperate fully with the Managing Authority and the Audit Authority and to support them in the recovery process.

16.2 Where the recovery relates to a claim against a beneficiary, which is a Public Entity established in the Russian Federation, and the Managing Authority is unable to recover the debt, the Russian National Authority shall provide the reimbursement of funds unduly spent in accordance with its national procedures on the basis of a complete file of the Managing Authority. Where the request of the Managing Authority did not succeed in recovery, the Commission has the right to file such a request to the Russian National Authority.

16.3 Without prejudice to the responsibility of the Managing Authority to recover funds unduly spent from any beneficiary established in the Russian Federation, except for Public Entities, and after the Managing Authority has undertaken all possible measures to recover, the Commission may proceed to the recoveries on behalf of the Managing Authority by any means, including by offsetting and by forced recovery before the competent courts.

16.4 Without prejudice to paragraph 16.2 of this Article, contracts concluded by the Managing Authority as part of the Programme shall contain a clause allowing the Commission to recover from any beneficiary established in the Russian Federation, except for Public Entities, any unduly spent amounts due to the Managing Authority which the latter was not able to recover. Where a beneficiary is a Public Entity established in the Russian Federation, contracts shall contain a clause allowing the Russian National Authority to recover from the beneficiary.

16.5 Where the recovery relates to systemic deficiencies in the management and control of the Programme by the Programme authorities and management bodies as defined in Article 3 of this Annex, the Parties will hold necessary consultations in order to resolve the situation with due regard to the Joint Operational Programme.

16.6 In cases related to a breach of legal obligations on the part the Managing Authority, where it is responsible for the reimbursement of funds to the Commission under the relevant EU legislation, it shall also be responsible for reimbursing corresponding financial contributions of the other Parties that co-finance the Programme to their respective National Authorities.

16.7 Recovered amounts by the Managing Authority may be reused by the Programme.