Agreement on procedure for the organization, management, functioning and development of the total markets of oil and oil products of the Republic of Belarus, Republic of Kazakhstan and the Russian Federation

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, the Agreement on creation of single customs area and forming of the Customs union of October 6, 2007, the Agreement on the single principles and regulations of activities of subjects of natural monopolies of December "9", 2010, the Agreement on the single principles and competition rules of December "9", 2010,

considering provisions of the Concept of forming of total energy market of state members of Eurasian economic community of December 12, 2008,

realizing need of creation of the total markets of oil and oil products of the State Parties of the Common economic space,

for the purpose of effective use of potential of fuel and energy complexes of the states of the Parties, and also providing national economies with oil and oil products

agreed as follows:

Article 1

The purposes of this agreement are determination of the basic principles and actions directed to forming of the total markets of oil and oil products of the State Parties of the Common economic space, and also development of the competition in these markets.

As the total market of oil and oil products of the Common economic space in this agreement it is understood determined by the contractual legal base of the Customs union within Eurasian economic community (further - the Customs union) and the Common economic space set of trade and economic relations of business entities of the State Parties of the Common economic space in the field of production, transportation, delivery, conversion and sale of oil and oil products in the territories of the State Parties of the Common economic space necessary for requirements satisfaction of the State Parties of the Common economic space in them.

Article 2

When forming the total markets of oil and oil products of the Common economic space of the Party proceed from the following basic principles:

1) non-use by the Parties in mutual trade of quantitative restrictions and export customs duties (other duties, taxes and fees having equivalent value). The payment procedure of export customs duties on oil and oil products when exporting them out of limits of single customs area of the Customs union is determined by separate, including bilateral agreements of gosudarstvuchastnik of the Common economic space;

2) priority ensuring needs of the State Parties of the Common economic space for oil and oil products;

3) unification of regulations and standards on oil and oil products of the State Parties of the Common economic space;

4) providing ecological safety;

5) forming of system of information support of the total markets of oil and oil products of the Common economic space.

Article 3

1. The parties perform complex of the following measures for forming of the total markets of oil and oil products of the Common economic space:

1) creation till July 1, 2011 of information exchange system on the basis of the customs information including data on deliveries, export and oil import and oil products all modes of transport;

2) creation till July 1, 2011 of the mechanisms of control preventing violation of terms of this agreement;

3) unification till July 1, 2013 of regulations or standards on oil and oil products of gosudarstvuchastnik of the Common economic space.

2. The measures specified in Item 1 of this Article are implemented by signing by the Parties or the bodies of techniques or rules authorized by them within the relevant agreements.

Article 4

The parties according to agreements between the State Parties of the Common economic space within the available technical capabilities provide conditions:

1) the guaranteed possibility of implementation of long-term transportation of the extracted oil and oil products made from it on the operating system of transport in the territory of gosudarstvuchastnik of the Common economic space, including on trunk oil pipeline systems and oil pipelines;

2) access to the oil transportation systems and oil products located in the territory of each of the State Parties of the Common economic space for the business entities registered in the territories of the states of the Parties, on the same conditions as for business entities of the Party on which territory oil transportation and (or) oil products is performed.

Article 5

Rates for oil transportation and oil products on system of oil pipelines and oil pipelines are established by national authorities of each state of the Party and can differ with transportation for export and for internal consumption. Rates for oil transportation and oil products are established for business entities of the states of the Parties at the level equal to the rates established for business entities of the state of the Party on which territory oil transportation and (or) oil products is performed.

Article 6

Competent authorities of the Parties approve till October 1 of each current year the next calendar year indicative balances of production (production), consumption, delivery, import and oil export, oil products of the State Parties of the Common economic space.

Competent authorities of the Parties approve long-term indicative balance of production, production, consumption, transportation, delivery, import and oil export and oil products of the State Parties of the Common economic space which if necessary can annually be adjusted taking into account the actual change of oil extraction, production and consumption of oil products of gosudarstvuchastnik of the Common economic space.

Amounts and the directions of the oil transportation got in the territory of one of the State Parties of the Common economic space annually are determined by protocols between competent authorities of the Parties by the territory of other State Party of the Common economic space.

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