Today, at the Gazprom Headquarters, Alexey Miller, Chairman of the Gazprom Management Committee and Murat Zyazikov, President of the Republic of Ingushetia have entered into an Agreement of Cooperation.

The Agreement contemplates promoting cooperation between Gazprom and the Republic of Ingushetia in the areas as follows:

• gasifying the Republic, taking account of consumer preparedness for gas supply and solvency;
• developing the natural gas vehicle sector;
• creating an automated gas metering system;
• developing and introducing gas saving technologies;
• ensuring environmental safety and nature conservation;
• taking part in contests and biddings for the right to use subsurface resources and conduct geological exploration.

In pursuance of the Agreement, the Republic of Ingushetia will:

• enact Republican laws to grant allowances (tax ones inclusive) to companies involved in targeted investment and social programs relating to gas supply;
• ensure full and timely payments for gas deliveries to budget sponsored consumers as well as timely reimbursement of expenses arising in connection with social support actions for eligible residential consumers;
• contribute to ensuring full and timely gas payments by self-funded customers;
• set annual average natural gas consumption standards for the residential sector in default of gas metering devices based on economically substantiated calculations provided by gas suppliers and on actual gas consumption;
• develop and implement a program to provide the population with gas meters.

Additionally, the Republic of Ingushetia will assist Gazprom in obtaining land and conveying title to social facilities to municipalities.

On its part, Gazprom will supply contractual gas volumes to regional consumers given available capacities in the Unified Gas Supply System and gas quotas allocated for Russia, and provided customers fully pay for gas deliveries and fulfill a preset gas debt repayment schedule.

Reference:

The previous five-year Agreement of Cooperation between Gazprom and the Republic of Ingushetia was sealed in September 2000.

In 2006 Gazprom supplied the Republic with 716 mln cu m of gas.

As of January 1, 2007, the regional gas debt has exceeded RUR 1.2 bln. This year’s gas deliveries are paid for at 77.08 per cent, with the arrears cleared at 14.74 per cent (the identical Russia-averaged figures are 96.69 and 28.92 per cent, respectively). The bulk of the debt is owed by small commercial and household consumers.

Natural gas penetration in the residential sector of the Republic of Ingushetia makes up 91.1 per cent including 95.8 per cent in cities & towns and 89.8 per cent in rural areas. The same figures throughout Russia average 53, 60 and 34 per cent, respectively.