Reference
The Draft Agreement was submitted by the Ministry of Energy.
The signing of the Agreement is a pre-condition for the entry into force of the East Route natural gas sales contract, signed 21 May 2014 between Gazprom and the China National Petroleum Corporation, hereinafter referred to as the Contract.
According to the Agreement, the Parties will support the successful implementation of this Contract and will provide comprehensive assistance to authorised organisations in designing, building, operating and maintaining the gas transport infrastructure needed to deliver gas from Russia to China along the East Route, specifically, the Power of Siberia Pipeline, including the trans-border section of the pipeline.
The following competent authorities of the Parties will coordinate the fulfillment of the Agreement and monitor its implementation:
· the Russian Ministry of Energy;
· the Chinese National Energy Administration.
Gazprom and the China National Petroleum Corporation (CNPC) have the status of the Parties’ authorised organisations responsible for implementing the Agreement.
Acting in line with their respective national legislations, the Parties provide support and create favourable conditions for the activity of authorised organisations, as well as their affiliated and contractor companies involved in design and prospecting projects, construction, operation and maintenance of the gas transport infrastructure needed to deliver gas along the East Route.
Each Party shall create the required tax conditions for its authorised organisations in order to implement the Agreement.
The Parties shall also provide the required assistance to authorised organisations in ensuring the timely opening of the trans-border section of the gas pipeline and to deliver the required natural gas volumes, as formalised in the Contract.
Moreover, the Agreement regulates the procedure for the trans-border crossings of personnel and equipment and the customs clearance procedures during trans-border crossings of vehicles and technical equipment, as well as construction and expendable materials involved in and needed for design and prospecting projects, construction, operation and maintenance of the trans-border section of the gas pipeline across the Amur River, hereinafter referred to as the underwater crossing.
The Agreement also stipulates that the Parties shall exempt materials and technical equipment imported into the countries of both Parties for the purpose of design and prospecting projects, construction, operation and maintenance of the underwater crossing, from taxes and customs duties and customs clearance operations.
The issue of exempting the Parties from the payment of customs duties shall be resolved by the Russian side in cooperation with the Eurasian Economic Commission.
The Agreement has a duration of 40 years. After this deadline expires, the Agreement shall automatically be extended for subsequent five-year periods, unless one Party notifies the other Party in writing about its intention to cancel the Agreement.
The Agreement contains regulations different from those stipulated by Russian legislation and is subject to ratification in line with Article 15 of the Federal Law, International Treaties of the Russian Federation.
The draft document was reviewed and approved by participants at the 9 October 2014 Government meeting.