Protocol of the Second Meeting of the Russian-U.S. Working Group for Energy Cooperation
On the basis of a mutual desire to continue and extend the energy dialog between the Russian Federation and the United States of America, and
directed by the agreement recorded in the Protocol of the first meeting of the Russian-U.S. Working Group for Energy Cooperation held on April 8-9, 2002 in Washington D.C., and following up the First Russian-U.S. Commercial Energy Summit held on October 1-2, 2002 in Houston, that both confirmed the intention of the two nations to promote closer interaction on energy cooperation issues,
the Working Group held its second meeting in Moscow on November 18-19, 2002.
The Russian side was led by Oleg Georgiyevich Gordeyev, Deputy Minister of Energy of the Russian Federation.
The U.S. side was led by Kyle McSlarrow, Deputy Secretary of Energy of the United States of America.
The Parties agreed to adopt the structure of the Working Group (attachment 1) developed in the course of working meetings between representatives of the Parties. In accordance with this structure, the Working Group consists of the following subgroups:
- Subgroup 1. Stability of Oil Supplies, Prices, Forecasts,
- Subgroup 2. Investment in the Russian Energy Sector.
- Subgroup 3. Energy Efficient Technologies and Environment.
- Subgroup 4. Information Exchange.
- Subgroup 5. Small and Medium Enterprises in the Fuel and Energy Complex.
To pursue implementation of Cooperation areas outlined at the first meeting of the Working Group and reflected in its structure, the Parties agreed upon the following:
1. In the area of oil supply stability and forecasts,
- Conduct consultations with the objective of improving the quality of data and forecasts in crude oil markets;
- Intensify information exchange on prices and stocks in major crude oil markets;
- Assist in developing a roundtable with experts on future supply and demand projections in crude oil markets;
- Consider the impact of fiscal policies on global oil and oil products prices;
- Consult and evaluate potential opportunities to establish a Strategic Petroleum Reserve in the Russian Federation.
2. In the area of investment in the Russian energy sector,
- Consider potential options for expanding the export of energy resources to the U.S. through U.S. investors' participation in the development of new oil and gas deposits and upgrading of energy transportation infrastructure of Russia;
- Encourage the expansion of U.S. strategic investors' involvement in the energy sector of Russia;
- Contribute to the resolution of problems that foreign investors have to face in Russia: taxation, administrative barriers, risks, issues of legislation including the PSA and Subsoil Legislation, competition, small and medium businesses in the fuel and energy complex, taking into consideration the recommendations of the participants of the Commercial Energy Dialogue;
- Prepare, recommendations for establishing a favorable investment climate, improving the culture of corporate governance and financial transparency of Russian energy sector companies in order to provide the most comfortable environment for the inflow of capital;
- Identify energy investment projects and facilitate interaction between U.S. and Russian commercial entities;
- Support transparent and stable regulations to attract investment in the energy sector.
3. In the area of energy efficient technologies and environment,
- Draft a Protocol on cooperation in energy efficiency between the Ministry of Energy of Russia and the U.S. Department of Energy;
- Conduct regular informal information exchanges and reciprocal expert consultations for developing a legislative and normative framework in the area of regulation and control of energy consumption and energy saving;
- Encourage cooperation between Russian and U.S. firms in the areas of manufacturing energy efficient equipment, instrumentation, and materials and providing services in Russia.
- Explore the possibility of joint training of specialists in the area of energy management;
- Continue the exchange of experience in conducting energy audits and developing business plans for energy efficiency projects;
- Consider the possibility of cooperative compilation of reference and analytical materials on energy efficiency issues and their distribution in Russia, the U.S., and third countries;
- Continue consultations on joint implementation of energy saving projects at healthcare facilities in Russia with international financial institutions involved;
- Encourage the participation of U.S. and Russian energy companies in the Vth International Specialized Exhibition "Energy Saving 2003" on March 12-15, 2003 in Moscow;
- Participate in a March 12-15, 2003 workshop organized by the Ministry of Energy focusing on issues of energy saving in the budget sphere and the U.S. FEMP program experience to be held in Moscow;
- Work with the American Petroleum Institute and other interested parties to provide information on the methodology and procedures for the certification of energy sector facilities and specialized equipment in compliance with international standards ISO 14001;
- Support the work being done by U.S. Environmental Protection Agency and other interested parties to provide information, and technical support to projects of extraction and disposal of coal bed methane in the Russian Federation, in particular, a pilot project in the Kuzbass region;
- Continue information exchange on issues of flaring gas and consider conducting a workshop on this matter for Russian and U.S. business communities in 2003 in Moscow;
- Expand the dialogue on existing cooperation between the U.S. and Russia on oil spill prevention and response issues
- Support implementation of the pilot project to modernize one of the coal-fired power plants in Primorski Krai using energy efficient technologies.
4. In the area of information exchange,
- Develop a mechanism for efficient interaction between experts of both countries in the area of information exchange;
- Continue exchange of best practices on the issue of establishing and operating energy information centers in the U.S. and the Russian Federation;
- Conduct informal consultations on a regular basis on standardization and unification of methods for processing, analysis, and presentation of information;
- Carry out exchange of expert teams for familiarization with the practice of operating national energy information centers;
- Exchange data on production, transportation, consumption, prices and trade.
5. In the area of small and medium enterprises of the fuel and energy sector,
- Encourage attracting investment to small and medium oil and gas producing enterprises of Russia,
- Examine prospects of foreign investment in the Russian independent small and medium oil and gas business in light of upcoming changes of the Russian legislation;
- Facilitate between U.S. and Russian energy-related small and medium energy business associations the exchange of information on small and medium enterprises;
- Consider the possibility of arranging and conducting a round table on the issue of "Legislative Support of the Activity of Independent Small and Medium Oil and Gas Producers in Russia and the U.S.";
The Parties agreed to hold the next meeting of the Working Group in Spring 2003 in Washington D.C.
This Protocol is signed in the city of Moscow on November 19, 2002 in two authentic copies, each in Russian and in English, both texts being equally valid.
Deputy Minister of Energy
Russian Federation
Deputy Secretary of Energy
United States of America
A