Russia ratifies protocol to amend intergovernmental agr't with Kazakhstan on oil supply compensation

MOSCOW. June 30. KAZINFORM - The Federation Council has ratified the Protocol amending the intergovernmental agreement between Russia and Kazakhstan on trade and economic cooperation in supply of crude oil and petroleum products to the Republic of Kazakhstan as of December 9, 2010.

As the press service of the CIS Interparliamentary Assembly informs, the document provides for compensation for the lost revenues of the federal budget of the Russian Federation, arising from the duty-free supplies of oil products from Russia to Kazakhstan to meet the domestic needs of Kazakhstan, by mutual deliveries of oil to Russia.

"The protocol contains a method to counter the supply of oil imported into the territory of the Russian Federation for petroleum products imported from Russia to Kazakhstan. Calculation of mutual deliveries are made ​​on the basis of acts of reconciliation compiled on a quarterly basis and adjusted based on the final act of reconciliation to be signed by the end of the year " the statement reads.

The method also contains a formula for determining the price of the crude oil.