Reference
The draft directive on the signing of the Cooperation Agreement between the Government of the Russian Federation and the Government of the Kyrgyz Republic in the Field of the Transportation, Distribution and Sale of Natural Gas in the Kyrgyz Republic and the draft of the cooperation agreement were developed by the Russian Ministry of Energy.
The draft agreement is designed to promote cooperation in the gas sector as set out by the Cooperation Agreement between the Government of the Russian Federation and the Council of Ministers – Government of the Republic of Kyrgyzstan on Developing the Oil and Gas Industry of March 2, 1993.
Under the draft agreement, the Kyrgyz side is to establish a 100% subsidiary of the Kyrgyzgaz Company in the Kyrgyz Republic, hereinafter referred to as the Company, and transfer to the Company all Kyrgyzgaz gas pipelines, gas distribution stations, underground gas storage facilities, land plots and other property, rights and interests specified in the draft agreement.
Under a purchase contract between Kyrgyzgaz and Gazprom, Gazprom will own a 100% stake of the statutory capital of the Company. The value of this stake is estimated at 1 (one) US dollar.
Under the draft agreement, the Company and its legal successors will perform the following activities:
· Gas deliveries to the Kyrgyz Republic;
· Underground gas storage in the Kyrgyz Republic;
· Construction, reconstruction, operation and maintenance of gas transport and gas distribution networks, underground gas storage facilities and other facilities of the gas industry infrastructure in the Kyrgyz Republic.
The term of the agreement is 25 years.