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The agreement between the Government of the Republic of Kazakhstan and the Government of Ukraine on cooperative principles in oil and gas industries

of July 9, 1996

The government of the Republic of Kazakhstan and the Government of Ukraine which further are referred to as with the Parties

proceeding from feasibility of preserving and development on long-term basis of specialization, cooperation and technologically interconnected productions,

recognizing need of joint development and implementation of target programs and projects of sci-tech cooperation for oil and gas industries,

considering mutual interest of the Parties in effective use of source of raw materials, the organization of joint businesses and interstate companies in oil and gas industries, creating favorable conditions for enhancement of the market relations between business entities,

agreed as follows:

Article 1

The parties on the basis of mutual advantage, mutual assistance and non-admission of the actions causing economic damage each other will develop in every possible way cooperation in oil and gas industries.

Article 2

The parties will charge to the Ministry of the oil and gas industry of the Republic of Kazakhstan and the State committee of oil, gas and oil-processing industry of Ukraine to provide coordination of activities of business entities of various patterns of ownership for implementation of the interconnected deliveries of fuel and energy resources and other goods, and also on performance of works and rendering services in oil and gas industries.

Article 3

The parties agreed that regions of joint activities, amounts of works on investigation, arrangement and development of oil and gas fields, repair and construction of facilities of oil and gas industries and their infrastructures in the territories of the Republic of Kazakhstan and Ukraine, amounts of conversion of fuel and energy resources and oil product supply, and also, if necessary, amounts of mutually deliveries of fuel and energy resources and other goods, are determined by annual separate protocols between the Ministry of the oil and gas industry of the Republic of Kazakhstan and the State committee of oil, gas and oil-processing industry of Ukraine. The specified protocols are integral part of this agreement.

Responsibility for realization of the interconnected deliveries of products and debt is born by the business entities who signed the external economic agreements (contracts).

Article 4

The interconnected deliveries of products, and also deliveries of products performed in payment for works and services which are performed on agreements within this agreement are exempted from collection of import and export customs duties on both sides.

Article 5

Calculations for deliveries of products between the companies and the organizations of the Parties, and also for performance of works and rendering services will be performed on contract prices in freely convertible currency or in national currencies of the Parties.

Article 6

The parties will promote creation of joint businesses of various patterns of ownership according to the current legislation of the Parties.

Article 7

The parties agreed in case of development of national energy programs to hold mutual consultations with the purpose of further deepening of integration communications, development of sci-tech cooperation and implementation of new technologies in oil and gas industries.

Article 8

The parties will take measures for development and implementation of ecological programs in oil and gas industries on the basis of the single methodological approaches providing the fastest achievement of the international environmental standards.

Article 9

The parties will interact in case of natural disaster response and accidents, and also to finance separate joint operations on increase in reliability and stability of functioning of objects of oil and gas industries.

Article 10

The parties will take proper measures on ensuring steady work main oil, gazo-and the oil pipelines passing on their territories and will perform free transit of hydrocarbonic raw materials and oil products.

If necessary the Ukrainian Side will provide storage in the underground gas storages of the Kazakhstan Side.

Amounts and conditions of transit of energy resources of the Parties for export are determined by protocols between the Ministry of the oil and gas industry of the Republic of Kazakhstan and the State committee of oil, gas and oil-processing industry of Ukraine. The specified protocols are integral part of this agreement.

Article 11

The parties will render mutual assistance in the solution of necessary social problems by distribution on the specialists attracted to performance of works on objects of oil and gas industries of the Parties of national treatments in the field of provision by it of the social rights and guarantees according to the current legislation of the Parties.

Article 12

The questions arising in connection with interpretation or application of provisions of this agreement will be permitted by negotiations and consultations or other method, acceptable for the Parties.

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