Document from CIS Legislation database © 2003-2022 SojuzPravoInform LLC

AGREEMENT BETWEEN THE GOVERNMENT OF THE REPUBLIC OF KAZAKHSTAN AND GOVERNMENT OF THE RUSSIAN FEDERATION

of June 7, 2002

About oil transit

(as amended on 24-12-2013)

The government of the Republic of Kazakhstan and the Government of the Russian Federation which further are referred to as with the Parties

being guided by the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on cooperation and development of fuel and energy complexes of December 25, 1993, the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on technical and economic cooperation and integration in oil and gas industries of February 25, 1997, the Agreement on carrying out coordinated policy in the field of transit of oil and oil products on bulk distribution lines of April 12, 1996,

The agreement on uniform conditions of transit through the territories of the State Parties of the Customs union of January 22, 1998, the Agreement on procedure for transit through the territories of the State Parties of the Commonwealth of Independent States of June 4, 1999,

proceeding from interest in development and deepening of further mutually beneficial cooperation in the field of oil transit,

agreed as follows:

Article 1

The parties cooperate in area of the transit of oil performed pipeline and other modes of transport based on mutual advantage and taking into account economic interests of each other.

This agreement determines procedure, conditions and the general principles of transit of oil across the territories of the states of the Parties.

Article 2

For implementation of this agreement of the Party appoint competent authorities:

from the Kazakhstan Side - the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan;

from the Russian Side - the Ministry of Energy of the Russian Federation.

Article 3

The parties will give the guaranteed opportunity of implementation of long-term transit of oil through the territories of the states of the Parties on the operating system of transport, including on trunk oil pipeline system in the approved quantity.

Article 4

The parties promote development and implementation of projects on expansion and reconstruction of the operating trunk oil pipeline systems, and also perspective projects of oil transportation in the new export directions.

For the purpose of implementation of provisions of this agreement for oil transportation in amounts and in the directions which are provided by appendix to this agreement including in the Atyrau direction (Kazakhstan) - Samara (Russia) of at least 15 million tons of oil in year of the Party provide:

- work on studying of perspectives of increase in handling capacity of the Atyrau oil pipeline - Samara with 15,0 to 25,0 of one million tons of oil a year for its transportation in agreed volumes in one of the following directions: in the direction of the Black Sea, or in the direction of the Baltic Sea, or in the direction of the western border of the Russian Federation;

- work on increase till 2014 in handling capacity of system of oil pipelines of Caspian Pipeline Consortium (further - KTK) to 67,0 of one million tons of oil a year;

- joint projects implementation of oil pipelines Burgas - Alexandroupoli and (or) Samsun - Ceyhan for the purpose of oil transportation to the relevant ports on the Mediterranean Sea.

Article 5

The directions of transit of the Kazakhstan oil through the territory of the Russian Federation and its quantity are annually determined by competent authority of the Russian Side on the basis of requests of competent authority of the Kazakhstan Side and join in the schedule of transit of oil approved in accordance with the established procedure

Article 6

The Russian side with guarantee gives opportunity of implementation of transit of the Kazakhstan oil through the territory of the Russian Federation on trunk oil pipeline system, and the Kazakhstan Side with guarantee will provide supply capacity of oil in the transit mode during all effective period of this agreement in the following quantity:

on the Atyrau oil pipeline - Samara - at least 15 million tons per year;

on system of oil pipelines Makhachkala - Tikhoretsk - Novorossiysk - is at least 2,5 of one million tons per year.

Article 7

The Kazakhstan Side with guarantee gives opportunity of implementation of transit of the Russian oil through the territory of the Republic of Kazakhstan on the existing and created trunk oil pipeline systems along route border of the Russian Federation - border of the Republic of Kazakhstan (Priirtyshsk) - Atasu (Republic of Kazakhstan) - Alashankou (People's Republic of China) in number of 7 million tons per year with possibility of increase up to 10 million tons per year.

The Russian side with guarantee provides supply capacity of the Russian oil in the transit mode in number of 7 million tons per year.

In case of increase in oil supply up to 10 million tons per year of the Party will create conditions for timely reconstruction and increase in capacity of systems of the oil pipelines located in the territories of the states of the Parties.

The amount of transit of the Russian oil declared by competent authority of the Russian Side joins in the oil transportation schedule for export approved by the Kazakhstan Side.

Article 8

Transit of the Kazakhstan oil on the oil pipeline Tengiz-Novorossiysk of the Caspian Pipeline Consortium (CPC) is performed according to current agreements and agreements.

Transit of the Russian oil in the direction Omsk (Russian Federation) - Priirtyshsk (Republic of Kazakhstan) - Atasu (Republic of Kazakhstan) - Alashankou (People's Republic of China) is performed according to international treaties.

Article 9

Oil transportation services in the transit mode through the territories of the states of the Parties are performed based on contracts (contracts) between business entities.

Article 10

Fee on implementation of transit of oil across the territory of the states of the Parties is made on the rates approved by executive bodies of the Republic of Kazakhstan and the Russian Federation.

The rate for services in transit of the oil moved in the mode of transit across the territories of the states of the Parties shall be competitive and not discrimination.

Fee on the oil transportation moved in the mode of transit across the territory of the states of the Parties till December 31, 2014 is made on the rates operating as of November 1, 2009 which can be indexed annually according to the rate of inflation since 2010. At the same time in comparable conditions the specified rates will not exceed the rates established for oil transportation not in the transit mode.

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