On Ratification of the Protocol on Amendments to the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on Cooperation in the Field of Transportation of Russian Oil through the Territory of the Republic of Kazakhstan to the People's Republic of China dated December 24, 2013

Home / RLA / On Ratification of the Protocol on Amendments to the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on Cooperation in the Field of Transportation of Russian Oil through the Territory of the Republic of Kazakhstan to the People's Republic of China dated December 24, 2013

On Ratification of the Protocol on Amendments to the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on Cooperation in the Field of Transportation of Russian Oil through the Territory of the Republic of Kazakhstan to the People's Republic of China dated December 24, 2013

The Law of the Republic of Kazakhstan dated May 20, 2024 No. 84-VIII SAM.

To ratify the Protocol on Amendments to the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on cooperation in the Field of Transportation of Russian Oil through the Territory of the Republic of Kazakhstan to the People's Republic of China dated December 24, 2013, signed in St. Petersburg on June 16, 2023.

President of the Republic of Kazakhstan

K. TOKAEV

Protocol on Amendments to the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on Cooperation in the Field of Transportation of Russian Oil through the Territory of the Republic of Kazakhstan to the People's Republic of China dated December 24, 2013

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

based on Article 9 of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on Cooperation in the Field of Transportation of Russian Oil through the Territory of the Republic of Kazakhstan to the People's Republic of China dated December 24, 2013 (hereinafter referred to as the Agreement),

have agreed on the following:

Article 1

Make the following changes to the Agreement:

1) the second paragraph of Article 2 should be worded as follows:

"from the Kazakh Side - the Ministry of Energy of the Republic of Kazakhstan;";

2) the sixth paragraph of Article 2 should be worded as follows:

"from the Russian Side, Public Joint Stock Company Rosneft Oil Company.";

3) Article 3 should be worded as follows:

"Article 3

The Parties create conditions for the long-term transportation of Russian oil by an authorized organization of the Russian Side in the amount of 10 million tons per year and grant it the right of access to the main pipeline system in the direction of transportation "border of the Russian Federation - border of the Republic of Kazakhstan (Tuimazy - Omsk - Novosibirsk - 2 main oil pipeline) - border of the Republic of Kazakhstan - border of the Russian Federation (Tuimazy - Omsk - Novosibirsk-2 main oil pipeline) - border of the Russian Federation - border of the Republic of Kazakhstan (Irtyshsk) - Atasu (Republic of Kazakhstan) - Alashankou (People's Republic of China)".";

4) Article 4 should be worded as follows:

"Article 4

Long-term transportation of oil in the direction of transportation provided for in Article 3 of this Agreement is carried out:

along the Kazakh part of the route "border of the Russian Federation - border of the Republic of Kazakhstan (main oil pipeline "Tuimazy - Omsk - Novosibirsk-2") - border of the Republic of Kazakhstan - border of the Russian Federation (main oil pipeline "Tuimazy - Omsk - Novosibirsk-2")" (hereinafter - transportation route 1) - in accordance with the agreement between the authorized organization of the Kazakh Side and the public Joint Stock Company Transneft, acting as an agent of the authorized organization of the Russian Side in terms of providing oil transportation services along the specified part of the route.;

along the Russian part of the route "border of the Republic of Kazakhstan - border of the Russian Federation (Tuimazy - Omsk - Novosibirsk-2 main oil pipeline) - border of the Russian Federation - border of the Republic of Kazakhstan (Priirtyshsk)" - in accordance with the agreement between the authorized organization of the Russian Side and the public joint Stock company Transneft, which is the service provider for the transportation of oil through the main pipelines of the Russian Federation, taking into account the technical capability of the system of main pipelines of the Russian Federation;

along the Kazakh part of the route "border of the Russian Federation - border of the Republic of Kazakhstan (Priirtyshsk) - Atasu (Republic of Kazakhstan) - Alashankou (People's Republic of China)" (hereinafter referred to as transportation route 2)" - in accordance with the oil transportation services agreement concluded between the authorized organizations of the Parties (hereinafter referred to as the transportation agreement), the terms of which may differ from the terms of the standard oil transportation services agreement approved by in accordance with the legislation of the Republic of Kazakhstan.";

5) Article 5 should be worded as follows:

"Article 5

The cost of transporting oil in the amount of 10 million tons per year, legally owned by an authorized organization of the Russian Side, along the transportation route 1 is 2.1 US dollars per 1 ton and is paid in tenge based on the exchange rate of the US dollar against tenge established by the National Bank of the Republic of Kazakhstan on the date when the authorized organization of the Kazakh Side issues a payment assignment. Such transportation cost and the calculation procedure are set out in the relevant transportation agreement and are not subject to change during the term of this Agreement.

The cost of oil transportation in the amount of 10 million tons per year, legally owned by an authorized organization of the Russian Side, along the transportation route 2 is approved for the entire term of this Agreement by the authorized state body of the Republic of Kazakhstan in US dollars per 1 ton based on agreements of authorized organizations of the Parties. Such transportation cost is established in the transportation agreement and is not subject to change during the term of this Agreement without agreement with authorized organizations of the Parties.

The Kazakh Side taxes oil transportation services on transportation routes 1 and 2 (including any of its sections) with value-added tax at a zero rate. At the same time, for the purposes of refunding value-added tax in accordance with the tax legislation of the Republic of Kazakhstan, oil transportation services along the transportation route (including any of its sections) are considered by the Kazakh Side as international transportation.";

6) the second paragraph of article 10 should be worded as follows:

"This Agreement is valid until January 1, 2034.".

Article 2

This Protocol shall be temporarily applied after 10 days from the date of its signature and shall enter into force from the date of receipt of the last written notification on the completion by the Parties of the internal procedures necessary for its entry into force.

Done in St. Petersburg on June 16, 2023, in two copies, each in the Kazakh and Russian languages, both texts being equally authentic.

For the Government

Republic of Kazakhstan

For the Government

Of the Russian Federation

President

Republic of Kazakhstan

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