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The agreement between the Russian Federation and Turkmenistan on cooperation in the gas industry

of April 10, 2003

The Russian Federation and Turkmenistan which are hereinafter referred to as with the Parties

being guided by the Treaty of friendship and cooperation between the Russian Federation and Turkmenistan of April 23, 2002,

in view of the Agreement between the Government of the Russian Federation and the Government of Turkmenistan on cooperation and development of fuel and energy complexes of April 15, 1994 and the Agreement between the Government of the Russian Federation and the Government of Turkmenistan on cooperation in oil and the gas industries of May 17, 1995,

being convinced that development of bilateral economic cooperation on equal, mutually advantageous, long-term basis and accomplishment of the reached agreements promote growth in prosperity of the people of the Russian Federation and Turkmenistan,

considering that each of the Parties has potential for realization of joint projects in the gas industry,

recognizing that the gas industry is important element of economy of both states, and for the purpose of cooperation increase in this area,

agreed as follows:

Article 1

The parties provide long-term mutually beneficial cooperation in the gas industry, being guided by the existing national legal system, interests and opportunities of the Parties in the following directions:

purchase of the Turkmen natural gas with provision of guarantees for deliveries and payments on the basis of the long-term contract between authorized organizations;

investigation, development and gas production on the terms of production sharing agreements on the shelf of the Caspian Sea and conversion, transportation and realization in case of implementation of joint projects;

joint designing, construction, reconstruction of infrastructure facilities of gas complex, including gas trunk pipeline system and provision of services;

preparation and application of the single unified specifications and technical documentation regulating functioning of gas trunk pipeline systems;

development and realization of joint projects in the field of gas saving and power supply;

development and development of new technologies, joint carrying out research and development works;

optimization of routes of transportation of natural gas according to the legislation of the Parties and on the basis of long-term agreements;

creation of new economically competitive gas transmission capacities and necessary infrastructure.

Article 2

For the purposes of implementation of provisions of this agreement the following authorized organizations are determined:

from the Russian Side - Gazprom Open joint stock company;

from the Turkmen Side - the State trade corporation "Turkmenneftegaz", Turkmengaz and Turkmenneft State concerns.

The Gazprom open joint stock company and the State trade corporation "Turkmenneftegaz" will sign on economically reasonable and mutually advantageous conditions the contract of purchase and sale of the Turkmen natural gas for action of this agreement in the following amounts (billion cubic meters.):

¦ 2004 год ¦ 2005 год ¦ 2006 год ¦ 2007 год ¦ 2008 год ¦ 2009 - 2028 ¦
¦          ¦          ¦          ¦          ¦          ¦     годы    ¦
¦  5 - 6   ¦   6 - 7  ¦    10    ¦ 60 - 70  ¦  63 - 73 ¦ по 70 - 80 в¦
¦          ¦          ¦          ¦          ¦          ¦     год     ¦

The Turkmen Side guarantees, for action of this agreement, supply of the Turkmen natural gas to the Russian Federation on border of Turkmenistan with the Republic of Uzbekistan and the Republic of Kazakhstan, and the Russian Side, on behalf of the authorized organization, during the specified period guarantees purchase, transportation and payment of the Turkmen gas delivered in amounts according to this Article.

Article 3

The parties study possibility of participation in joint projects of natural gas export on the international markets.

Article 4

Each of the Parties provides to other Party information on all questions connected with development of cooperation which is available at its order provided that such information has no confidential character and its transfer does not contradict the national legal system of the Party providing such information.

The parties timely exchange the relevant acts of the legislation relating to the activities performed within this agreement including trade, capital investments, the taxation, banking, insurance, financial services, transport and employment relationships.

Article 5

This agreement does not affect the rights and obligations of the Parties according to other international treaties which participants they are.

Article 6

As agreed by the parties changes or additions which are drawn up by separate Protocols which are integral part of this agreement can be made to this agreement.

Article 7

Coordination and control over the implementation of provisions of this agreement are exercised:

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

from the Turkmen Side - the Ministry of the oil and gas industry and mineral resources of Turkmenistan.

Exchange of information about the course of accomplishment of provisions of this agreement is performed following the results of every half-year in the period of all effective period of this agreement.

Article 8

Disputes between the Parties on interpretation and application of provisions of this agreement are solved by negotiations and consultations between the Parties.

Article 9

This agreement becomes effective at the same time with entry into force of the long-term contract of purchase and sale of the Turkmen natural gas between authorized organizations and is effective till December 31, 2028 года*.

Action of this agreement is automatically prolonged for the subsequent five-year periods if any of the Parties at least in 12 months prior to the expiration of the next period does not notify other Party on the intention to stop its action.

It is made in Moscow on April 10, 2003 in two authentic copies, everyone in the Russian and Turkmen languages, and both texts are equally authoritative.


For the Russian Federation

V. Putin

For Turkmenistan

S. Niyazov


* The agreement became effective on April 10, 2003.


Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

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