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The agreement between the Government of the Republic of Belarus and the Government of the Russian Federation on procedure for pricing (rates) by supply of natural gas to the Republic of Belarus and its transportation through the gas pipelines located in the territory of the Republic of Belarus

of November 25, 2011

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

in view of provisions of the Agreement on creation of the Union State of December 8, 1999,

taking into account provisions of the Agreement on the Customs union between the Republic of Belarus and the Russian Federation 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,

based on 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 (dalee-Soglasheniye about rules of access),

in view of mutual interest in creation of equal conditions of activities for business entities of the states of the Parties,

agreed as follows:

Article 1

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

"gas" - the gas mixture of gaseous hydrocarbons and other gases consisting, generally from methane, transported in the compressed gaseous state on gas-transport systems;

"internal requirements" - the gas amounts necessary for consumption in the territory of the Republic of Belarus, including own needs and technological losses of gas in case of its transportation, and also creations of necessary amount of gas in underground gas storages in the territory of the Republic of Belarus;

"gas prices for the Republic of Belarus" - gas prices, delivered for satisfaction of internal needs of the Republic of Belarus, created on border of the Republic of Belarus with the Russian Federation on the basis of this agreement;

"gas transportation" - movement of gas on the gas pipelines located in the territory of the Republic of Belarus on the territory of the Republic of Belarus and (or) through the territory of the Republic of Belarus out of its limits;

"basic fares" - rate for transportation services of the gas moved through the territory of the Republic of Belarus out of its limits on gas pipelines of Beltransgaz open joint stock company (without gas cost for own needs and technological losses on gas pipelines of Beltransgaz open joint stock company), and (or) rate on gas transportation by the Belarusian part of the gas pipeline Yamal-Europe (without the rent, gas cost for own needs and technological losses on the gas pipeline Yamal-Europe);

"gas price for consumers of the Yamalo-Nenets Autonomous Area" the regulated wholesale price for the gas extracted by Gazprom open joint stock company and its affiliates determined in Russian rubles in the procedure established in the Russian Federation implementable to the consumers located in the territory of the Yamalo-Nenets Autonomous Area, except for the population and the final consumers who for the first time signed contracts of delivery of gas with the beginning of delivery after July 1, 2007 or acquiring gas over the amounts fixed in delivery agreements of gas for 2007 (without the additional amounts of gas provided by supplementary agreements to the specified agreements) (daleenaseleny and other consumers);

"the inflation size" - the size equal to the numerical value of change of consumer prices (CPI-U) published by Bureau of labor statistics of Department of work of the USA on its website under heading "CPI for All Urban Consumers (CPI-U) for US City Average for All Items (1982-84 = 100), Unadjusted percent change to... from-" (for the purposes of calculation divided on 100 and increased per unit of), for preceding period 12 months long since the next published value as of the 1st working day of 3rd decade of December in the year preceding settlement.

Article 2

Since January 1, 2012 gas prices for the Republic of Belarus, and also rates for gas transportation through the territory of the Republic of Belarus are determined in contracts between business entities of the states of the Parties according to this agreement and established in US dollars.

The rate for gas transportation for internal consumption is determined by the territory of the Republic of Belarus according to Article 4 of this agreement and the legislation of the Republic of Belarus.

Article 3

The gas price for the Republic of Belarus for the period is established from January 1 to December 31, 2012 in the amount of 165, the 6th US dollar for 1 thousand cubic meters and recalculated for the actual calorific capability.

The gas price for the Republic of Belarus since January 1, 2013 is determined by addition of the gas price taken into consideration for consumers of the Yamalo-Nenets Autonomous Area and specific transportation costs of gas from places of gas production in the Yamalonenetsky autonomous area to border of the Republic of Belarus and the Russian Federation, gas storage cost in underground gas storages of the Russian Federation, expenses of Gazprom open joint stock company by gas sale. The received price of gas is recalculated for the actual calorific capability.

For calculation gas prices for the Republic of Belarus for 2013 are agreed the following basic values which are indexed for January 1, 2013 at inflation size:

specific transportation cost of gas from places of gas production in the Yamalo-Nenets Autonomous Area to border of the Republic of Belarus and the Russian Federation proceeding from rate of transit fare 2, the 7th US dollar for 1 thousand cubic meters on 100 kilometers of distance and the average distance of transportation accepted to equal 3262 kilometers;

the specific cost of gas storage in underground gas storages of the Russian Federation in the amount of 6, 2 US dollars for 1 thousand cubic meters;

the specific size of expenses of Gazprom open joint stock company on gas sale in the amount of 1 US dollar for 1 thousand cubic meters.

Since January 1, 2014 the specified specific costs and specific size are subject to annual indexation for January 1 every year at inflation size in relation to their values of prior year.

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