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The agreement between the Government of the Russian Federation and the Government of Ukraine on cooperation in development of the oil and gas industry of Russia

of June 24, 1993

The government of the Russian Federation and the Government of Ukraine which are hereinafter referred to as - the Parties,

recognizing that fuel and energy complexes are interconnected and are base of development of economy of the Parties,

being guided by need of further development of the oil and gas industry,

considering mutual interest of the Parties in effective use of source of raw materials, and also in investment, scientific and technical and other types of cooperation in these industries,

proceeding from the principles of the European energy charter, agreed as follows:

Article 1

The parties on the basis of mutual advantage, mutual assistance and non-admission of the actions causing economic damage each other will develop in every possible way cooperation in the oil and gas industry.

Article 2

The parties will take measures to preserving the developed industry and cross-industry communications for supplies of equipment, materials, components and other products for the oil and gas industry, to their further development and enhancement.

Article 3

The parties will render necessary assistance in the conclusion and agreement performance on delivery by associations, the companies, the organizations and other business entities of the equipment, materials, components and other products for the oil and gas industry. At the same time supply rates of the major types of products within allocated quotas are determined by annually separate Protocol between the Ministry of Fuel and Energy of the Russian Federation and the ministry (department) of determination of the Government of Ukraine.

Article 4

The parties will take measures to ensuring accomplishment bilateral and coordination of interstate multilateral programs, scientific and technical and developmental developments in the oil and gas industry, the organization of implementation of new technologies and the equipment, effectively using the developed structure and specialization of the research and design organizations of the Parties.

Article 5

The parties will promote carrying out the single approved normative and technical policy in the oil and gas industry, standardization of the existing standards and specifications, providing unity of regulations and rules of construction of facilities in these industries, their operation, technological management and safety.

Article 6

The parties will take measures to development and implementation of the state ecological programs in the oil and gas industry on the basis of single methodological approach.

Article 7

Areas of joint activities of business entities of the Parties and amounts of works on investigation, arrangement and development of oil and gas fields, construction of roads, housing and subjects to welfare appointment will be determined by annually separate Protocol between the Ministry of Fuel and Energy of the Russian Federation and the ministry (department) of determination of the Government of Ukraine after coordination in accordance with the established procedure by local authorities and approvals by the Government of the Russian Federation.

Article 8

The parties will promote creation of joint businesses on development, arrangement and operation of new oil and gas fields, repair and commisioning of idle wells, expansion of application of secondary methods of oil extraction, development of production and social infrastructure in areas oil and gas production.

Article 9

The parties will provide free and duty-free importation and export of the technological and technical means, materials and mechanisms belonging to the business entities participating in accomplishment of this agreement, and used for its purposes.

Article 10

Settlement for the works performed according to this agreement will be performed by the Parties on the conditions provided in agreements (contracts) signed between business entities.

Article 11

The parties will provide protection of the rights and guarantees of the citizens of the Russian Federation working at the territory of Ukraine and the citizens of Ukraine working in the territory of the Russian Federation.

Article 12

The parties will give mutual aid in case of natural disaster response and catastrophic crashes on objects of the oil and gas industry, in financing of separate joint operations on increase in reliability and stability of functioning of such objects.

Article 13

The parties will take proper measures on ensuring steady work main oil, the gas pipelines and oil pipelines passing on their territories and will perform free transit through their territories of oil, gas and oil products.

Article 14

The parties intend to resolve all matters of argument arising in connection with interpretation and application of this agreement by negotiations and consultations.

Article 15

The parties agreed that unilateral change of terms of this agreement is not allowed. All changes and amendments to this agreement are valid only on condition of their written registration and signing by authorized representatives of the Parties.

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