Azerbaijan, Baku, July 27 / Trend E. Kosolapova/
Russian Energy Minister Alexander Novak and Kyrgyz Energy and Industry Minister Osmonbek Artykbaev signed a bilateral agreement on cooperation in the field of transportation, distribution and sale of natural gas in Kyrgyzstan, Russian ministry reported.
According to the agreement, a joint venture will be created in Kyrgyzstan which will receive all the gas infrastructure within the republic from Kyrgyzgas state company.
Russian Gazprom acquires 100-percent interest in the company for $1. Following the acquisition, Gazprom as well as its subsidiaries, will have the exclusive right to import natural gas to the country and will be protected against expropriation and nationalization in Kyrgyzstan.
Meanwhile, Gazprom will have to pay off KyrgyzGas's $40 million debt and guarantees to invest over 20 billion rubles ($612.8 million) in modernization and reconstruction of Kyrgyzgas's gas infrastructure in five years.
The agreement will be valid for a period of 25 years.