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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 State Parties of this agreement on behalf of the Governments, further - the Parties,

being guided by the Agreement to the Energy Charter of December 17, 1994 and the Agreement on procedure for transit of February 8, 1992,

considering need of ensuring free transit of oil and oil products irrespective of their origin, the destination and the owner,

recognizing importance of implementation of agreed measures for the purpose of providing the national economy of the State Parties of this agreement with oil and oil products,

for the purpose of further realization of provisions of the Agreement on creation of Economic union of September 24, 1993,

agreed as follows:

Article 1

For the purposes of this agreement the stated below terms have the following values:

"transit" - movement through the territory of one of the Parties of oil and oil products occurring in the territory of other Party for consumers of the third party;

"the main oil and oil pipelines" - oil and oil pipelines with linear latches and stations of the cathode protection, pumping pumping stations with reservoir reservoirs and without them, Items of control and control of oil and oil pipelines, production and technological communication on them, utility lines of consumers of the oil and oil pipeline, repair and operational Items and the infrastructure providing safe operation of the oil and oil pipeline, Items of delivery and acceptance, discharge, filling and loading;

"oil products" - the ready-made products received in case of oil refining.

Article 2

The parties take measures for ensuring free transit of oil and oil products in case of their pipeline transportation through the territories of the states. The oil and oil products delivered by transit through the territory of one of the Parties cannot be used for needs of the Party on which territory transit is performed.

Article 3

Transit of oil and oil products on bulk distribution lines of the Parties is performed according to multilateral and bilateral protocols under approval of amounts and schedules of transit taking into account amounts of their production.

Article 4

The parties take measures for ensuring timely calculations for transit of oil and transportation of oil products.

Calculations for transit of oil are perfromed on the rates approved by the Parties and made on the basis of contracts between business entities of the Parties.

Calculations for transportation of oil products are made on the basis of contracts between business entities of the Parties.

Article 5

Carrying out transactions on accounting, acceptance, delivery, transportation, storage, oil loading, and also management of operating modes of oil pipelines and operational management of flows of oil is exercised according to the regulations and rules approved by the Parties.

Article 6

In case of emergencies of the Party render each other assistance and the help in liquidation of their effects. The amount reduced owing to emergencies transported oil and oil products is distributed in proportion to the amounts provided by the signed agreements. The losses of oil and oil products which resulted from accidents and also costs for their liquidation are compensated by the organizations guilty of accidents. The reasons of accidents are established by specially created commission with participation of representatives of concerned parties.

For bystreyshy accident elimination of the Party grant the right to emergency and recovery divisions of objects of oil and oil pipelines freely to import and/or export on the territory of the concerned party the equipment and materials according to the sheet of technical equipment of these divisions. At the same time the Parties not apply customs duties, other customs payments and charges equivalent to them, and also restrictions of non-tariff nature for the specified equipments and materials.

The oil and oil products necessary for completion of technological amounts in case of accident elimination on the main oil and oil pipelines are not assessed with customs duties and charges.

Article 7

The parties take measures, including joint in order that any of the Parties did not appear under the threat of disconnection from supply sources of oil and oil products and damage was not caused to interests of the states suppliers, State Parties of transit and consumers of oil and oil products.

The parties shall provide smooth and safe functioning of objects of pipeline transport for transit of oil and oil products.

Activities of the business entities operating objects of oil and oil pipelines are regulated by the national legal system of the Parties or agreements between the Parties.

Article 8

The parties not make unilaterally the decisions attracting deterioration in conditions of transit. In case of the dispute connected with transit of oil and oil products which permission is not provided in the relevant contracts between business entities of the Party should interrupt and reduce their deliveries to its permission. The parties do not bear responsibility for non-execution of their agreement obligations by business entities in connection with transit implementation.

Article 9

Disputes between the Parties on interpretation and application of provisions of this agreement, and also the disputes affecting the rights and obligations of the Parties will be permitted by carrying out consultations and negotiations between concerned parties or other procedures provided by rules of international law, this agreement and provisions of the Agreement to the Energy Charter.

Article 10

This agreement is open for accession to it of the states interested in the participation in it and ready to assume liabilities following from this agreement. Accession is considered by the depositary which became effective from the date of receipt of the adequate notice.

Article 11

Provisions of this agreement do not mention obligations assumed by the Parties according to other international treaties.

Article 12

This agreement is temporarily applied from signature date and becomes effective from the moment of receipt by depositary of the third notification on accomplishment of the interstate procedures by the Parties necessary for its entry into force. For the Parties which sent to depositary the notification on accomplishment of such procedures is later, it becomes effective in day of receipt of this notification by depositary.

Article 13

Each Party can leave this agreement, having notified on it depositary at least in six months prior to exit, having settled the financial and other liabilities arising from this agreement.

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