On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on Gas Supply to the Baikonur Complex

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The Law of the Republic of Kazakhstan dated March 26, 2020 No. 305-VI SAM.

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on gas supply to the Baikonur complex, signed in Moscow on April 3, 2019.

President Republic of Kazakhstan

K. TOKAEV

AGREEMENT between the Government of the Republic of Kazakhstan and the Government of Of the Russian Federation on the gas supply of the Baikonur complex

(Entered into force on June 15, 2020, Bulletin of International Treaties of the Republic of Kazakhstan 2020, No. 3, Article 14)

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

Guided by the Agreement between the Republic of Kazakhstan and the Russian Federation on the Basic Principles and conditions of Use of the Baikonur Cosmodrome dated March 28, 1994, the Lease Agreement of the Baikonur complex between the Government of the Republic of Kazakhstan and the Government of the Russian Federation dated December 10, 1994, the Agreement between the Republic of Kazakhstan and the Russian Federation on the Status of the city of Baikonur, the procedure for its formation and status its executive authorities on December 23, 1995, expressing mutual interest in the development of the Baikonur complex, agreed on the following:

Article 1

The concepts used in this Agreement have the following meanings:

gaz is a multicomponent mixture of hydrocarbons with a predominant methane content, which is in a gaseous state, is a product of crude gas processing and meets the requirements of the law of the Eurasian Economic Union in the field of technical regulation in terms of qualitative and quantitative content of components, supplied to the territory of the Baikonur complex from the Beineu-Bozoi-Shymkent main gas pipeline system;

"Baikonur complex - testing, technological, scientific, industrial, technical, social and support facilities of the Baikonur cosmodrome and the city of Baikonur with their movable and immovable property;

"gas consumers" - household, utility, or industrial consumers;

"gas supply facilities" is a technological complex located on the territory of the Baikonur complex, consisting of gas pipelines (linear part) and interconnected structures associated with them, which, according to this Agreement, are recognized as movable property.;

"retail sale of gas" is an entrepreneurial activity for the sale of gas on the territory of the Baikonur complex to consumers of gas for their own needs without the purpose of further sale;

"gas supply organization" means KazTransGas Aimak Joint Stock Company and/or its Kyzylorda production branch, established and registered in the territory of the Republic of Kazakhstan in accordance with the legislation of the Republic of Kazakhstan and operating gas retail sales without registration in the territory of the city of Baikonur.;

"operating organization" is a legal entity established and registered in the territory of the Republic of Kazakhstan in accordance with the legislation of the Republic of Kazakhstan, engaged in the operation of gas supply facilities of a gas supply organization and operating without registration in the territory of the city of Baikonur.;

"Gas supply operator" is a legal entity authorized by the Baikonur City Administration, which has low-pressure gas supply facilities on its balance sheet.

Article 2

The following competent authorities shall coordinate and monitor the implementation of this Agreement:

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

The Russian Side is represented by the Ministry of Energy of the Russian Federation and the State Corporation for Space Activities Roscosmos.

In the event of a change in the competent authority, the relevant Party shall notify the other Party in writing through diplomatic channels.

Article 3

On the territory of the city of Baikonur, the retail sale of gas is carried out by a gas supply company.

The gas supply company also has the right to carry out retail sales of gas on the territory of the Baikonur cosmodrome.

The operation of gas supply facilities of the gas supply organization and facilities transferred by the gas supply operator is carried out by the operating organization.

Article 4

In order to ensure gas supply to the city of Baikonur, the gas supply company and gas consumers in the territory of the city of Baikonur conclude a gas retail sale agreement in accordance with the legislation of the Republic of Kazakhstan.

Article 5

The price of retail sale of gas to consumers of the city of Baikonur is determined by the legislation of the Republic of Kazakhstan and must correspond to the price set by the authorized body of the Republic of Kazakhstan responsible for the development and implementation of state policy in the field of natural monopolies for gas consumers of the Kyzylorda region of the Republic of Kazakhstan.

Article 6

Within 3 months from the date of signing this Agreement, the gas supply operator transfers its low-pressure gas supply facilities located in the city of Baikonur to the trust management of the gas supply organization, and also conducts measures to prepare consumers for gas consumption.

Article 7

On the territory of the Baikonur complex, mutual settlements for the sale of gas to gas consumers are made in Kazakhstani tenge or Russian rubles at the exchange rate of the National Bank of the Republic of Kazakhstan on the day of payment.

Article 8

State supervision over the activities of gas supply and operating organizations is carried out by the authorized body of the Republic of Kazakhstan in the field of industrial safety in accordance with the legislation of the Republic of Kazakhstan.

Article 9

In the territory of the city of Baikonur, the operating organization operates on the basis of a certificate for the right to carry out work in the field of industrial safety, which is issued by the authorized body in the field of industrial safety of the Republic of Kazakhstan.

Article 10

Taxes and other mandatory payments to the budget of the city of Baikonur are collected when operating in the city of Baikonur only in respect of legal entities registered in the city of Baikonur.

Article 11

Disputes arising in connection with the interpretation and application of this Agreement shall be resolved through consultations and negotiations between the Parties.

If the dispute is not resolved during the negotiations, the Parties will appoint a conciliation commission, whose decision will be binding on both Sides.

Article 12

This Agreement may be amended and supplemented by mutual agreement of the Parties, which are integral parts of this Agreement and are formalized in separate protocols.

Article 13

Contracts concluded prior to the signing of this Agreement between business entities on the issue of gas supply are subject to alignment with this Agreement within six months.

Article 14

This Agreement is temporarily applied after 14 days from the date of its signing. This Agreement shall enter into force on the date of receipt through diplomatic channels of the last notification by the Parties of the completion of the internal procedures necessary for its entry into force, and will be valid for the entire period of lease by the Russian Federation of the Baikonur complex, unless either Party declares by written notification through diplomatic channels of its intention to terminate this Agreement no later than 6 months before the expiration of the relevant period of its validity.

Done in Moscow on April 3, 2019, in two original copies, each in the Kazakh and Russian languages, both texts being equally authentic. In case of discrepancy between the texts of this Agreement, the Parties shall refer to the text in Russian.

For the Government of the Republic of Kazakhstan

For the Government of the Russian Federation

President

Republic of Kazakhstan

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