The signed Resolution establishes a temporary special procedure for calculating the rates of export customs duties for the period of up to 31 March 2015 depending on the contractual price for the natural gas delivered from the territory of the Russian Federation to the territory of Ukraine.

Export duties will be calculated using the following formula: a discount of $100 per 1,000 cubic metres will apply at the price of $333.3, and a discount of 30 percent at the price below $333.3.

According to Article 2 of the CIS Free Trade Agreement of 18 October 2011 (hereinafter the Agreement), a party does not apply customs duties and other payments equivalent to customs duties on the export of goods destined for the customs territory of the other party, with the exception of cases listed in Addendum 1 to the Agreement, which is an inalienable part thereof.

In accordance with Addendum 1 to the Agreement, a special formula is applied to export customs duties for natural gas exported to Ukraine.

In accordance with Part 3, Article 3 of the Law of the Russian Federation No. 5003-1 of 21 May 1993 On Customs Tariffs, the Russian Government is entitled to determine export customs duty rates.

In compliance with the Agreement of 30 October 2014, the special pricing procedure for natural gas deliveries from the territory of the Russian Federation to Ukraine will apply from 1 November 2014 until 31 March 2015.