On ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on determining the Status of Process oil in the Tuimazy– Omsk- Novosibirsk-2 and Omsk–Pavlodar Trunk Oil Pipelines

The Law of the Republic of Kazakhstan dated November 21, 2018 No. 195-VI SAM.

      To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on determining the status of process oil in the Tuimazy– Omsk– Novosibirsk-2 and Omsk–Pavlodar trunk oil pipelines, signed in Chelyabinsk on November 9, 2017.    

     President    Republic of Kazakhstan

N. NAZARBAYEV  

Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on determining the status of process oil in the Tuimazy- Omsk-Novosibirsk-2 and Omsk-Pavlodar trunk oil pipelines    

     (Entered into force on December 11, 2018 - Bulletin of International Treaties of the Republic of Kazakhstan 2019, No. 1, art. 4)    

      The Government of the Republic of Kazakhstan and the Government of the Russian Federation, hereinafter referred to as the Parties,  

      Having regard to the Agreement on Mutual Recognition of Rights and Regulation of Property Relations of October 9, 1992,  

      Considering the friendly relations between the Republic of Kazakhstan and the Russian Federation that have developed in the oil industry,  

      have agreed on the following:  

Article 1  

      For the purposes of this Agreement, the following terms are defined:  

     "oil located in the Omsk-Pavlodar oil pipeline is oil in the amount of 141728 tons, reflected on the balance sheet of KazTransOil Joint Stock Company and located in the Omsk-Pavlodar main oil pipeline located on the territory of the Russian Federation, which is taken into account during business operations as process oil necessary for the commercial operation of the specified main oil pipeline in according to its purpose;

     "oil contained in the TON-2 oil pipeline is oil in the amount of 62048 tons, recorded on the balance sheet of Transneft-Ural Joint Stock Company (a subsidiary of Transneft Public Joint Stock Company) and located in the Tuimazy - Omsk -Novosibirsk-2 trunk oil pipeline located in the Republic of Kazakhstan (hereinafter - "TON-2"), which is taken into account during business operations as process oil necessary for the industrial operation of the specified main oil pipeline in accordance with its purpose.

     The oil contained in the Omsk-Pavlodar oil pipeline and the oil contained in the TON-2 oil pipeline are similar in their qualitative characteristics.

Article 2  

      The Parties recognize that the ownership of:  

     part of the oil in the Omsk-Pavlodar oil pipeline, in the amount of 62048 tons, belongs to the joint-stock company Transneft-Ural (a subsidiary of the public joint-stock company Transneft);

     part of the oil in the Omsk-Pavlodar oil pipeline, in the amount of 79680 tons, belongs to KazTransOil Joint Stock Company;

     The oil contained in the TON-2 pipeline, in the amount of 62048 tons, belongs to KazTransOil Joint Stock Company.

Article 3  

     Within 10 months from the date of entry into force of this Agreement, the Parties shall ensure the displacement of 79,680 tons of oil owned by KazTransOil Joint Stock Company from the territory of the Russian Federation to the territory of the Republic of Kazakhstan via the Omsk-Pavlodar oil pipeline in several batches.

Article 4  

      When implementing the provisions of this Agreement, the approval of the antimonopoly authorities of the Parties is not required.  

      The recognition of ownership of oil by KazTransOil Joint Stock Company and Transneft - Ural Joint Stock Company (a subsidiary of Transneft Public Joint Stock Company) in accordance with Article 2 of this Agreement for tax purposes is not considered as income when calculating, in relation to the Republic of Kazakhstan, corporate income tax (including withheld tax at the source of payment), as applied to the Russian Federation - corporate income tax, as well as is not a sale (sales turnover) for calculating indirect taxes (value added tax and excise tax) in the Republic of Kazakhstan and the Russian Federation, is not recognized as taxable imports in the Republic of Kazakhstan and is not subject to other taxes, fees and other mandatory payments established by the legislation of the Republic of Kazakhstan and the Russian Federation. Federation.  

Article 5  

      In case of disputes between the Parties concerning the interpretation or application of the provisions of this Agreement, the Parties shall resolve them through negotiations or consultations.  

Article 6  

      By agreement of the Parties, amendments may be made to this Agreement, which are formalized in separate protocols.  

Article 7  

      This Agreement shall enter into force on the date of receipt of the last written notification that the Parties have completed the internal procedures necessary for its entry into force.  

      Done in Chelyabinsk on November 9, 2017 in two copies, each in the Kazakh and Russian languages, both texts being equally authentic. In case of disagreement in the interpretation of the provisions of this Agreement, the Parties shall use the text in Russian.  

For the Government    Republic of Kazakhstan  

For the Government    Of the Russian Federation  

President    

Republic of Kazakhstan     

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