Article 9 Tax and Customs Provisions

9.1 The Russian Federation and the Member State shall apply to procurement and grant contracts financed by the Programme the most favoured tax and customs regime as allowed by the applicable legislation of each Party.

9.2 Value added tax paid by the Programme participants in the framework of procurement and grant contracts financed by the Programme, where it is not recoverable under the applicable national law, shall be treated as an eligible cost. In such case, the Programme participants shall demonstrate that they are unable to reclaim such tax.