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The agreement between the Government of the Republic of Belarus and the Government of the Russian Federation on cooperation increase in the gas industry

of April 12, 2002

The government of the Republic of Belarus and the Government of the Russian Federation, further - the Parties,

being guided by provisions of the Agreement on creation of the Union State of December 8, 1999,

wishing to promote long-term mutually beneficial cooperation in the field of supply of the Russian natural gas to the Republic of Belarus, designings, construction and operation of gas trunk pipeline system in the territory of the Republic of Belarus,

for the purpose of reliable providing consumers of the Republic of Belarus with natural gas, further development of gas trunk pipeline system of the Republic of Belarus, and also implementation of uninterrupted transit of natural gas through the territory of the Republic of Belarus to the European countries

agreed as follows:

Article 1

The parties will expand and deepen in every possible way cooperation in the gas sphere, to promote further integration and creation of the equal conditions to subjects of managing directed to forming of common economic space of the Union State.

Article 2

The parties develop long-term mutually beneficial cooperation in the following directions:

development of joint balance of natural gas for satisfaction of requirement of the Republic of Belarus in it;

ensuring uninterrupted transit of natural gas through the territory of the Republic of Belarus to the third countries;

approval of policy in the field of development of the gas trunk pipeline systems passing on the territory of the Republic of Belarus;

reconstruction and expansion of the operating gas trunk pipeline systems, underground gas storages and other objects of gas complex of the Republic of Belarus;

creation of necessary conditions for financing, designing, construction and operation of gas pipelines, reconstruction of the operating system of gas pipelines, effective development of underground storage of natural gas in the territory of the Republic of Belarus;

cooperation in the field of development and development of new technologies, joint carrying out research and development works, standardization of technical requirements and service regulations of objects of the gas industry;

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

carrying out the single approved normative and technical policy regulating functioning of gas trunk pipeline systems of the Republic of Belarus and the Russian Federation, standardization of the existing standards and specifications in the gas industry.

Article 3

The Russian side annually provides in balance of gas across the Russian Federation necessary natural gas resources for its delivery to the Republic of Belarus.

Article 4

Amounts and conditions of supply of natural gas to the Republic of Belarus, and also its transit through its territory are determined by the relevant contracts between Gazprom (JSC Gazprom) Open joint stock company, other suppliers of gas and the Republican unitary enterprise for transportation and supply of gas Beltransgaz (Beltransgaz company). After creation of joint joint-stock company according to Article 5 of this agreement amounts and conditions of supply of natural gas to the Republic of Belarus, and also its transit through its territory are determined by the relevant contracts between Gazprom (JSC Gazprom) Open joint stock company, other suppliers of gas and joint joint-stock company.

Article 5

The Belarusian Side till July 1, 2002 will complete execution of necessary decisions on creation no later than July 1, 2003 of the joint gas transmission Belarusian-Russian organization in the form of joint-stock company (further - joint joint-stock company).

The parties charge to the Beltransgaz company and JSC Gazprom to develop offers on creation of joint joint-stock company based on objects of the Belarusian gas-transport system and to submit for consideration of the Parties.

Article 6

During creation of joint joint-stock company of the Party agreed to proceed from the following basic provisions:

the joint joint-stock company will be created according to the legislation of the Republic of Belarus;

main objectives of activities of the created joint-stock company will be transportation and supply of gas to the Republic of Belarus, transit of gas across its territory, construction and development of gas-transport system of the Republic of Belarus;

the gas transmission objects which are now under economic authority of the Beltransgaz company and privatized within creation of joint joint-stock company and the property acquired by the specified joint-stock company will be its property;

function of the operator on operation of the Yamal-Europe gas pipeline in the territory of the Republic of Belarus will be assigned to joint joint-stock company.

Article 7

The Belarusian Side will resolve the issues connected with creation of necessary conditions for forming of joint joint-stock company, requiring change of the current legislation of the Republic of Belarus, enhancement of pricing and implementation of effective mechanisms of the calculations excluding formation of debt for the natural gas delivered to the Republic of Belarus.

Article 8

The parties will give support to joint-stock company in receipt of the credits for financing of construction and reconstruction of gas trunk pipeline systems.

Article 9

The parties will render assistance in receipt of the corresponding permissions to the territories of the states necessary for activities of joint joint-stock company.

Article 10

Investments of subjects of managing of the Russian Federation in the form of personal and real estate, the financial resources and other material resources enclosed in objects of the gas industry in the territory of the Republic of Belarus are not subject to non-paid nationalization and requisition in the territory of the Republic of Belarus.

Article 11

Each Party provides to other Party information on all questions connected with development of cooperation in the gas industry which is available at its order provided that such information has no confidential character and its provision does not contradict the legislation of the state of the Party providing such information.

The parties timely exchange the corresponding regulatory legal acts relating to the cooperation performed within this agreement.

Article 12

This agreement is temporarily applied from the moment of signing and becomes effective from the date of the last notification on accomplishment of the interstate procedures by the Parties necessary for its entry into force.

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