At todayís ordinary meeting Gazpromís Management Committee acknowledged the expediency of shifting over to the implementation of the investment phase within the International Consortium for the Ukrainian Gas Transmission System Operation and Development to be engaged in the consecutive construction of the Bogorodchany-Uzhgorod gas pipeline. The Management Committee also ratified an UAH 182 million (some USD 34 million) increase in the Consortiumís charter capital, to be achieved by Gazprom and Naftogaz of the Ukraineís 50/50% additional contributions.
The issue of increasing the Consortiumís charter capital is pending approval by Gazpromís Board of Directors.
Under the Agreement between the Government of the Russian Federation and the Cabinet of Ministers of the Ukraine on strategic cooperation in the gas industry, effective from 7 October 2002, Gazprom and Naftogaz of the Ukraine entered into an Agreement on setting up the 50/50% International Consortium for the Ukrainian Gas Transmisson System Operation and Development. The companyís charter capital accounted for USD 1 million.
The 1st stage of the investment phase to be implemented by the International Consortium for the Ukrainian Gas Transmisson System Operation and Development covers construction of a 50-km-long section of the Bogorodchany-Uzhgorod gas pipeline.
The pre-investment phase of the Consortiumís activities included fulfillment of key commitments necessary to start implementing the investment stage (including a feasibility study and financing scheme) of the Bogorodchany-Uzhgorod gas pipeline construction. In addition, starting 2002-end, the parties involved have conducted a preliminary analysis of the Ukrainian gas transmission system technical condition and worked through a handful of conceptual models of the Consortiumís operation.
On 18 August this year, the RF Government and the Ukrainian Cabinet of Ministers signed in the city of Sochi an Agreement on measures to be stepped up for ensuring strategic cooperation in the gas industry. Said Agreement identifies the terms and conditions of the Bogorodchany-Uzhgorod gas pipeline construction project.
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