1.   The European Union shall contribute to strengthening the conflict settlement process in South Ossetia.

2.   For this purpose, the European Union shall provide a contribution to the OSCE to finance meetings of the JCC and other mechanisms within the JCC framework, to provide for organisation of conferences under the aegis of the JCC, for furniture and computer and other equipment for the two Secretariats as well as to provide certain costs for the running of the two Secretariats for one year.

1.   Disbursement of financial aid provided under this Joint Action shall be conditional upon the holding of regular meetings of the JCC and the other mechanisms in the JCC framework within twelve months of the starting date of the financing agreement to be concluded between the Commission and the OSCE Mission to Georgia. Both the Georgian and South Ossetian sides should make demonstrable efforts to achieve real political progress towards a lasting and peaceful settlement of their differences.

2.   The Commission shall be entrusted with the task of controlling and evaluating the implementation of the EU’s financial contribution, in particular with regard to the conditions set out in paragraph 1. To that end, the Commission shall conclude a financing agreement with the Mission to Georgia on the use of the EU contribution, which shall take the form of a grant. The Commission shall also ensure the correct use of the grant for the purposes set out in Article 1(2).

3.   The OSCE Mission to Georgia shall be responsible for reimbursing mission expenses, for the organisation of conferences under the aegis of the JCC, and for the correct purchase and handing over of the equipment. The financing agreement will stipulate that the OSCE Mission to Georgia shall ensure visibility of the EU contribution to the project and shall provide the Commission with regular reports on its implementation.

4.   The Commission, in close cooperation with the EUSR for South Caucasus, shall liaise closely with the OSCE Mission to Georgia in order to monitor and evaluate the impact of the EU contribution.

5.   The Commission shall report in writing on the implementation of this Joint Action to the Council, under the responsibility of the Presidency, assisted by the Secretary General of the Council/High Representative for the CFSP. This report will in particular be based on regular reports to be provided by the OSCE Mission to Georgia, as stipulated in paragraph 3.

1.   The financial reference amount for the EU contribution referred to in Article 1(2) shall be EUR 133 000.

2.   The management of the expenditure financed by the amount specified in paragraph 1 shall be subject to the European Community procedures and rules applicable to the general budget of the European Communities, with the exception that any pre-financing shall not remain the property of the European Community.

3.   Expenditure shall be eligible as of 1 July 2005.

1.   This Joint Action shall enter into force on the day of its adoption.

It shall apply from 1 July 2005 to 30 June 2006.

2.   This Joint Action shall be reviewed ten months after entering into force. To that end, the EUSR for the South Caucasus, in association with the Commission, shall assess the need for further support to the settlement process in Georgia/South Ossetia and make recommendations to the Council, as appropriate.