November 2013
Practice Group(s):
Oil and Gas
Energy and
Infrastructure
(Projects and
Transactions)
Proposed Revision to the Gas Export Law in
Russia
By Sergey Milanov
Summary of the Legislative Bill amending Federal Law N.117-FZ 'On the
Export of Gas'
On 6 November 2013, the Russian government submitted to the Duma (the lower
chamber of the Russian legislature) a bill aiming to amend the Federal Law 'On the
Expert of Gas', broadening the entities who may undertake natural gas exports, including
LNG operations. The bill would amend the existing Gas Export Law (N. 117-FZ, dated 18
July 2006, and Federal Law N.164-FZ 'On the Fundamentals of the Governmental
Regulation of Foreign Trade Operations'), The proposed revisions to the Gas Export Law
are detailed below.
In addition to Gazprom and its wholly-owned subsidiaries, the following categories of
companies will also be allowed to export Russian liquefied natural gas (LNG):
I)
entities holding licenses for the development of subsoil blocks of federal importance,
if the license for the development of the respective subsoil block as of 1 January
2013 contemplates either (a) the construction of a LNG facility, or (b) the supply of
the gas extracted from such subsoil block to an LNG facility for liquefaction
II) state controlled Russian companies (i.e. companies in which the Russian Federation
holds and/or controls directly or indirectly more than 50% voting equity) which are the
users of subsoil blocks located on the sea bed of the Russian internal sea waters,
territorial sea, and continental shelf (including the Black and Azov Seas), and liquefy
gas extracted from such subsoil blocks, or liquefy gas extracted under Production
Sharing Agreements (PSAs), including agreements concluded prior to the entry into
force of this amendment
III) subsidiary companies, in which the state controlled companies set forth in paragraph
(II) above, hold more than 50 percent voting equity and which liquefy gas extracted
from the foregoing subsoil blocks, or liquefy gas extracted under PSA agreements,
including agreements concluded prior to the entry into force of this amendment.
The amendments to the Gas Export Law also establish an obligation for all exporters of
LNG to provide information about their exports to the Russian Energy Ministry.
The proposed revisions to the Law Regulating Foreign Trade Operations contemplate
entrusting the Russian Energy Ministry with the authority to issue licenses for the export
of Russian gas in liquid state.
If adopted by the Russian Federal Assembly and promulgated in time, the above
amendments will come into force on 1 December 2013.
Authors:
Sergey Milanov
sergey.milanov@klgates.com
Proposed Revision to the Gas Export Law in Russia
+81.3.6205.3604
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