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

of November 28, 2001

The government of the Russian Federation and the government of the Republic of Kazakhstan, further referred to as - the Parties,

being guided by the Agreement between the Government of the Russian Federation and the Government of the Republic of Kazakhstan on cooperation and development of fuel and energy complexes of December 25, 1993,

regulations of the Contract between the Russian Federation and the Republic of Kazakhstan on economic cooperation for 1998 - 2007,

The memorandum between the Government of the Russian Federation and the Government of the Republic of Kazakhstan of cooperation in the gas industry of November 19, 2001, being convinced that development of bilateral economic cooperation will help growth in prosperity of the people of each of the Parties,

expressing confidence that trade and economic cooperation are necessary and important factors of development of the bilateral relations on equal, mutually advantageous, stable and long-term basis,

in view of that each of the Parties has potential for realization of joint projects in the gas industry,

agreed as follows:

Article 1

Subject of this agreement is development of the main directions and conditions of cooperation of the Parties in the gas industry.

Article 2

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

development of joint balance of deliveries and transit of the Russian and Kazakhstan gas for action of this agreement;

construction, reconstruction and operation of gas pipelines, underground gas storages and other infrastructure facilities of gas complex and provision of services; approval of policy in questions of development of the gas-transport systems passing on the territory of the states of the Parties;

implementation of transactions on gas interchange, according to the legislation of the states of the Parties, and on the basis of long-term agreements between authorized organizations of the Parties;

development of joint projects of gas transportation through the territories of the states of the Parties on the markets of the third countries;

investigation, development and operation of gas fields and other hydrocarbonic raw material, including on the principles of the production sharing agreement;

preparation and application of the unified normative and technical documents regulating functioning of gas-transport systems.

Article 3

For implementation of this agreement of the Party appoint authorized organizations:

from the Russian Side - Gazprom Open joint stock company,

from the Kazakhstan Side - Private company "The "Transport of Oil and Gas" national company.

For the purpose of effective fulfillment of provisions of this agreement of the Party suggest authorized organizations to prepare offers on creation of joint business on the parity basis.

Will include the field of activity of joint business:

purchase and marketing of natural gas on mutually advantageous and economically acceptable conditions, including natural gas of the Karachaganak field;

transportation and conversions of the Kazakhstan gas at gas processing plants of the Russian Federation, including the gas amounts intended for consumption in the Republic of Kazakhstan;

optimizations of routes of transportation of natural gas and the organization of exchange transactions, according to the legislation of the states of the Parties, on the basis of long-term agreements;

accomplishment of functions of the operator when implementing joint projects of transportation of natural gas through the territories of the states of the Parties on the markets of the third countries;

creation of new economically competitive gas transmission capacities and necessary infrastructure.

The parties guarantee provision to joint business of possibility of use of the operating capacities of the gas-transport systems and their expansions.

Article 4

The parties agreed to develop cooperation in questions of transportation and conversion of the Kazakhstan gas at gas processing plants of the Russian Federation and sale of the commodity gas produced from resources of the Kazakhstan gas on the markets of the Republic of Kazakhstan, including by exchange transactions on mutually advantageous conditions, according to the legislation of the states of the Parties and on the basis of long-term agreements between authorized organizations of the Parties.

Article 5

The parties agreed to cooperate in area of development and implementation of actions on bringing quality of trade preparation of the gas transported by both Parties to the level of export standards, development of new technologies, joint carrying out research and developmental developments, harmonization of technical requirements and service regulations of objects of the gas sector, development of working and scientific and technical documentation, training of the Kazakhstan specialists for the gas industry in educational institutions and the centers of the Russian Federation.

Article 6

Each Party will provide to other Party information on all questions providing 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 national legal system of the Party providing such information. The parties will timely exchange the corresponding regulatory legal acts relating to the activities performed within this agreement.

Article 7

The parties will aim to create favorable conditions for development of trade and economic cooperation and mutual investments in the gas industries of the states of the Parties.

Article 8

This agreement does not affect the rights and obligations of the Parties following from other international treaties which participants they are.

Article 9

As agreed by the parties changes or additions which are drawn up by the separate protocols which are integral parts of this agreement can be made to this agreement.

Article 10

Coordination and control over the implementation of this agreement are exercised:

from the Russian Side - the Ministry of Energy of the Russian Federation; with

The Kazakhstan Side - the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan.

Exchange of information about the course of accomplishment of this agreement will be performed following the results of every half-year in the period of all effective period of this Agreement.

Article 11

In case of change of the official name and the address of authorized organization of one Party, and also the state body of this Party exercising coordination and control over the implementation of this agreement, this Party sends the written notice of it to other Party through diplomatic channels.

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