On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the construction and subsequent operation of the third unit of Ekibastuz GRES-2

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On the ratification of the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the construction and subsequent operation of the third unit of Ekibastuz GRES-2

The Law of the Republic of Kazakhstan dated January 17, 2011 No. 391-IV

To ratify the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the construction and subsequent operation of the third unit of Ekibastuzskaya GRES-2, signed in Orenburg on September 11, 2009.

President of the Republic of Kazakhstan N. Nazarbayev

Agreement between the Government of the Republic of Kazakhstan and By the Government of the Russian Federation on the construction and subsequent operation of the third block of Ekibastuzskaya GRES-2

(Bulletin of International Treaties of the Republic of Kazakhstan, 2011, No. 3, Article 45) (Entered into force on April 28, 2011)

The Government of the Republic of Kazakhstan and the Government of the Russian Federation, hereinafter referred to as the Parties, based on the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on cooperation in the fields of fuel and energy complexes dated December 24, 1992, taking into account the provisions of Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on the Promotion and Mutual Protection of Investments dated July 6, 1998, proceeding from the interest in deepening further mutually beneficial cooperation in the field of electric power industry, guided by the need to develop the joint-stock company Ekibastuzskaya GRES-2 Station (hereinafter - joint-stock company), including through the construction of the third block of Ekibastuzskaya GRES-2 according to technical solutions providing for the use of the infrastructure available to the joint-stock company and the unification of new equipment with equipment currently in operation, noting the importance of ensuring parallel operation of the energy systems of the Republic of Kazakhstan and the Russian Federation, agreed as follows:

Article 1

This Agreement defines the terms of cooperation between the Parties on the construction and subsequent operation of the third unit of Ekibastuzskaya GRES-2 (hereinafter referred to as the project).

Article 2

The project is being implemented by a joint-stock company, the participants of which are Joint-stock company Samruk-Energy (Republic of Kazakhstan) and Open Joint-Stock Company INTER RAO UES (Russian Federation) (hereinafter referred to as authorized organizations). In case of replacement of authorized organizations, the Parties immediately notify each other about it.

Article 3

The Parties shall take the necessary measures to ensure the operation of the energy systems of the Republic of Kazakhstan and the Russian Federation in parallel, for which all necessary agreements (contracts) are concluded between the economic entities of the states of the Parties involved in ensuring the parallel operation of the Unified Energy System of Kazakhstan and the Unified Energy System of Russia by January 1, 2010, ensuring cooperation without prejudice to the specified business entities. The supply of new equipment for the purposes of the project is carried out on a tender basis in accordance with the procedure established by the legislation of the Republic of Kazakhstan.

Article 4

Authorized organizations provide financing for the project on equal terms and in the amount necessary for the implementation of the project. The project is financed by attracting borrowed funds from the joint-stock company, including collateral in the form of corporate guarantees from authorized organizations and (or) collateral for the property of the joint-stock company and (or) collateral for shares of the joint-stock company. For the purposes of the project implementation, the Parties assist in attracting borrowed funds from credit (financial) organizations of the Republic of Kazakhstan and the Russian Federation, including development banks, as well as from international financial organizations and other financial institutions.

Article 5

In order to attract borrowed funds, taking into account the need for the joint-stock company to have long-term contracts for the sale of electricity, the Kazakh Side provides: establishment of a tariff for the sale of electricity for the joint-stock company, ensuring the payback of the project within the time limits agreed by authorized organizations, in accordance with the legislation of the Republic of Kazakhstan; establishment of a reduction coefficient for the joint-stock company to the tariff for services for the transmission of exported electricity through the electric networks of the Republic of Kazakhstan in accordance with the legislation of the Republic of Kazakhstan; documentary confirmation of the average hourly capacity when the joint-stock company supplies electricity from the Republic of Kazakhstan to the Russian Federation. The volumes of long-term supplies of electricity produced by the joint-stock company to the Russian Federation are coordinated in accordance with the established procedure between the system operator of the Unified Energy System of Kazakhstan, the organization for the management of the unified national (all-Russian) electric grid of the Russian Federation and the system operator of the Unified Energy System of Russia, as defined by the legislation of the States of the Parties.

Article 6

In case of amendments to the legislation of the Republic of Kazakhstan regarding an increase in tax rates compared to those in force on the date of signing this Agreement, the joint-stock company and its contractors participating in the project implementation shall pay such taxes at the rates established by the legislation of the Republic of Kazakhstan in force on the date of signing this Agreement. In case of introduction (establishment) of new taxes after the date of signing this Agreement, the norms of the legislation of the Republic of Kazakhstan regarding the introduction (establishment) of new taxes shall not apply to the joint-stock company and its contractors. The provisions of this article apply exclusively to income and operations for the implementation of works (services) within the framework of the project carried out by the joint-stock company and its contractors involved in the implementation of the project, and are valid for the period of repayment of borrowed funds specified in Article 4 of this Agreement. The provisions of this article do not apply to income taxed at the source of payment in accordance with the tax legislation of the Republic of Kazakhstan. For the purposes of this article, a contractor is a person who performs work (services) related to the implementation of a project for a joint-stock company.

Article 7

The following competent authorities shall coordinate and monitor the implementation of this Agreement: from the Kazakh Side - the Ministry of Energy and Mineral Resources of the Republic of Kazakhstan; from the Russian Side - the Ministry of Energy of the Russian Federation. In the event of a replacement of the competent authorities, the Parties shall immediately notify each other.

Article 8

In the event of circumstances that create obstacles to the fulfillment by one of the Parties of its obligations provided for in this Agreement, or disagreements regarding the application and/or interpretation of the provisions of this Agreement, the competent authorities of the Parties shall consult in order to make mutually acceptable decisions to overcome these circumstances or disagreements and ensure the implementation of this Agreement. Disagreements that cannot be resolved through consultations between the competent authorities of the Parties are resolved through negotiations between the Parties.

Article 9

This Agreement is concluded for an indefinite period and shall enter into force from the date of receipt by the Parties of the last written notification through diplomatic channels that the Parties have completed the internal procedures necessary for its entry into force. From the date of repayment by the joint-stock company and authorized organizations of the borrowed funds specified in Article 4 of this Agreement, either Party may terminate this Agreement by sending the other Party a written notification of such intention at least 6 months before the expected date of termination. The fact that the joint-stock company and authorized organizations have no debts to the organizations specified in Article 4 of this Agreement is reflected in the protocol on the completion of the project, signed by the competent authorities of the Parties. Termination of this Agreement does not affect the fulfillment of obligations stipulated by the agreements (contracts) concluded under this Agreement during its validity period. This Agreement may be amended with the written consent of the Parties. This Agreement is temporarily applied from the date of its signing to the extent that it does not contradict the legislation of the States of the Parties.

Done in Orenburg on September 11, 2009, 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 text in Russian will be used.

For the Government For the Government of the Republic of Kazakhstan Of the Russian Federation

President

Republic of Kazakhstan

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