Article 4 Programme Participants

4.1 The Programme participants are beneficiaries and contractors as defined in Article 1 of this Annex as well as subcontractors.

4.2 Each project shall designate a lead beneficiary, who will represent the partnership and sign the grant contract with the Managing Authority. The lead beneficiary shall assume responsibility for ensuring the implementation of the entire project. All beneficiaries shall actively cooperate in the development and implementation of projects. In addition, they shall cooperate in the staffing and/or financing of projects. Each beneficiary shall be legally and financially responsible for the activities that it is implementing and for the share of the project budget that it receives.

4.3 Beneficiaries shall conclude a partnership agreement. The partnership agreement shall guarantee the sound financial management of the funds allocated to the project and regulate inter alia the recovery of unduly paid funds.

4.4 For the purposes of this Agreement, Programme funds received by Programme participants in the Russian Federation shall not be considered as foreign financing as defined in the national legislation of the Russian Federation.