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MOSCOW, December 11. /ITAR-TASS/. The Russian government's commission for legislation approved a bill on ratifying the agreement between the Russian and Kyrgyz governments on cooperation in transportation, distribution and sale of natural gas in Kyrgyzstan.
The document, placed on the Russian cabinet's website on Wednesday had been drawn by the Foreign Ministry and the Energy Ministry.
Kyrgyzstan ensures the founding in the republic of a 100-percent daughter company of its authorized organization Kyrgyzgaz. All the Kyrgyzgaz property and rights will be transferred to the new organization, and under a contract of purchase/sale, Gazprom will buy a 100-percent stake in the authorized capital of Kyrgyzgaz. The stake is priced at one U.S. dollar.
According to the agreement, the company supplies natural gas to Kyrgyzstan, stores gas underground, distributes and sells gas, builds, repairs and operates the gas transportation and gas distribution networks, underground gas storage facilities and other elements of the infrastructure of the republic's gas complex.
Kyrgyzstan provides a number of guarantees aimed at creating favorable conditions for the operation of the company.
For its part, Gazprom guarantees investment of at least 20 billion rubles in modernizing the gas supply infrastructure, modernization of the company's equipment and trunk gas pipelines, compliance with the tariff policy approved by the Kyrgyz authorizes, uninterrupted supply of natural gas to the republic's consumers given the available technical opportunities, and guaranteed supply of natural gas to Kyrgyz consumers in the amount envisioned by contracts.
The agreement is valid for 25 years.
The bill will be reviewed at a meeting of the Russian cabinet.