The agreement on rules of access to services of subjects of natural monopolies in the field of gas transportation on gas-transport systems, including bases of pricing and tariff policy

of December 9, 2010

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

based on the Agreement on the Customs union between the Russian Federation and the Republic of Belarus of January 6, 1995, the Agreement on the Customs union of January 20, 1995, the Agreement on the Customs union and the Common economic space of February 26, 1999, the Constitutive treaty of Eurasian economic community of October 10, 2000,

agreed as follows:

Article 1

For the purposes of this agreement the following basic concepts are used:

"gas" - the gas mixture of the gaseous hydrocarbons and other gases extracted and/or made in the territory of the State Parties of the Common economic space, consisting, generally from methane, transported in the compressed gaseous state on gas-transport systems;

"gas-transport systems" - the constructions for gas transportation including trunk gas pipelines and related single engineering procedure objects except gas distribution networks;

"gas transportation services" - services in movement of gas in gas-transport systems;

"Competent authorities" - the bodies authorized by the Parties for control of implementation of this agreement;

"internal requirements" - the gas amounts necessary for consumption in the territory of each of the states of the Parties;

"access to services of subjects of natural monopolies in the field of gas transportation" - provision of right to use of the gas-transport systems managed by subjects of natural monopolies of the states of the Parties for gas transportation;

"the market (equal profit) prices" - the wholesale prices for gas created for satisfaction of internal requirements proceeding, including, from the following principles:

for the gas State Parties of the Common economic space forming of market wholesale price is performed by deduction from gas selling price in the foreign market of size of duties, charges, taxes, other payments levied in these states, and gas transportation cost outside the gas State Parties of the Common economic space taking into account difference in gas transportation cost in the external and internal markets of the supplier of gas;

for the gas-consuming State Parties of the Common economic space - market wholesale price which forming is performed by the producer of the gas state by deduction from gas selling price in the foreign market of duties, charges, taxes, other payments, and also gas transportation cost outside the gas State Party of the Common economic space;

"the gas State Parties of the Common economic space" - gosudarstvauchastnik of the Common economic space in the territory of whom it is consumed gas less, than it is got and made;

"the gas-consuming State Parties of the Common economic space" - gosudarstvauchastnik of the Common economic space in the territory of whom it is consumed gas more, than it is got and made.

Article 2

The purpose of this agreement is establishment of rules of access to services of subjects of natural monopolies in the field of gas transportation on gas-transport systems, including bases of pricing and tariff policy for requirements satisfaction of the State Parties of the Common economic space.

Access to services of subjects of natural monopolies in the field of gas transportation is provided in accordance with the terms hereof only concerning the gas occurring from the territory of the State Parties of the Common economic space. Provisions of this agreement do not extend to the relations of access to services of subjects of natural monopolies in the field of gas transportation in relation to the gas occurring from the territories of the states, not being participants of the Common economic space and to the relations in the field of gas transportation out of limits of the Common economic space and because of its limits.

Article 3

In case of ensuring access to services of subjects of natural monopolies in the field of gas transportation on gas-transport systems of the Party proceed from the following basic principles:

non-use by the Parties in mutual trade of import and export customs duties (other duties, taxes and fees having equivalent value);

first-priority ensuring internal needs for gas of the State Parties of the Common economic space;

the prices and rates for gas transportation for satisfaction of internal needs of the states of the Parties are established according to national legal systems of the states of the Parties;

unification of regulations and standards on gas of the State Parties of the Common economic space;

providing ecological safety.

Article 4

Condition of the Common economic space provided with this agreement of access to services of subjects of natural monopolies in the field of gas transportation on gas-transport systems is realization by the Parties of the package of measures including the following events:

a) creation till January 1, 2012 of information exchange system on the basis of information including data on internal gas consumption;

b) creation till January 1, 2012 of mechanisms for preparation of indicative balance estimations according to this agreement;

c) unification till July 1, 2013 of regulations and standards on gas of the State Parties of the Common economic space;

d) transition to market (equal profit) gas prices in the territories of the State Parties of the Common economic space.

Completion by the Parties of the package of measures stated above is drawn up by the Protocol to this agreement.

Article 5

The parties provide achievement of market (equal profit) gas prices in the territories of all State Parties of the Common economic space no later than January 1, 2015.

At the same time the Kazakhstan Side provides step-by-step price increase of gas sale in the territory of the Republic of Kazakhstan to the level comparable to gas prices in the territory of the Russian Federation.

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