July 18, 2006                                                                                                                          No. 117-FZ

RUSSIAN FEDERATION

FEDERAL LAW

ON GAS EXPORT

Adopted

By State Duma

July 5, 2006

Endorsed

By Council of the Federation

July 7, 2006

(as amended by Federal Law No. 318-FZ of November 30, 2013)

Article 1. Objectives and Scope of Application of this Federal Law  

1. This Federal Law defines the principles of gas export state regulation based on the need to protect the economic interests of the Russian Federation, compliance with the international obligations associated with gas export, ensuring income to the Federal budget, and to maintain the fuel and energy balance of the Russian Federation.

2. This Federal Law shall apply to gas produced from all types of hydrocarbon crude fields, and transported in gaseous or liquefied state (hereinafter referred to as natural gas in gaseous state, and natural gas in liquefied state, respectively).

(as amended by Federal Law No.318-FZ of November 30, 2013)

Article 2. Russian Federation Legislation on Gas Export

1. Legal regulation of gas export shall be excercised by the international treaties of the Russian Federation, this Federal Law, other Federal Laws, and other regulatory legal acts of the Russian Federation.

2. The requirements of this Federal Law shall not apply to the export of gas produced in accordance with the Production Sharing Agreements concluded prior to the effective date of this Federal Law becomes effective.

Article 3. Exclusive Right to Gas Export

1. The organization owning of the unified gas supply system, or its subsidiary company with a hundred percent participation of the aforementioned organization in the authorized capital, shall be granted the exclusive right to export natural gas in gaseous state.

(as amended by Federal Law No.87-FZ of June 5, 2007)

1.1. The exclusive right to export natural gas in liquefied state shall be granted to:

1) parties indicated in Part 1 of this Article;

2) users of subsoil blocks on subsoil blocks of Federal significance, whose subsoil use license, as of January 1, 2013, provides for construction of a liquefied natural gas production facility, or transportation of the produced natural gas in gaseous state for liquefaction to the liquefied natural gas production facility;

3) legal entities incorporated pursuant to the Law of the Russian Federation with more than fifty percent participation (contribution) of the Russian Federation in their equity capital, and (or) regarding which the Russian Federation is entitled to control more than fifty percent of the total number of votes pertaining to the voting shares constituing the equity capital of such legal persons, that are also the users of inland seawater and territorial sea subsoil blocks, as well as the subsoil blocks of the continental shelf  of the Russian Federation, Black and Azov Seas, and that produce natural gas in liquefied state out of natural gas in gaseous state produced on the aforementioned subsoil blocks, or out of natural gas in gaseous state produced under the implementation of the Production Sharing Agreements including the ones concluded before the day this Federal Law becomes effective, and to such legal entities' subsidiaries with more than fifty percent total vote participation of these legal entities in their authorized capitals pertaining to the voting shares constituing their authorized capital, and that produce natural gas in liquefied state out of natural gas in gaseous state produced on the abovementioned subsoil blocks, or from natural gas in a gaseous state produced under the implementation of the Production Sharing Agreements including the ones concluded prior to the effective date of this Federal Law.

(Part 7 introduced by Federal Law 222-FZ of July 18, 2011)

2. Licenses to excercise the exlusive right to gas export shall be issued to organizations indicated in Parts 1 and 1.1 of this Article under the procedure established by the Russian Federation legislation on foreign trade activities.

(as amended by Federal Law No.87-FZ of June 5, 2007)

3. The parties indicated in Parts 1 and 1.1 of this Article shall present the information on gas export to the federal executive agency performing the functions of formulating and implementing the state policies and legal regulation pertaining to the fuel and energy sector, pursuant to the list and observing the procedure established by the Russian Federation Government.

(Part 3 introduced by Federal Law 222-FZ of July 18, 2011)

President

of the Russian Federation

Moscow, the Kremlin

July 18, 2006

No. 117-FZ