16 October, 1997.- LUKOIL President Vagit Alekperov and Chief Executive of the Unified Energy System (UES) Boris Brevnov in the presence of First Deputy Prime Minister and Fuel and Energy Minister Boris Nemtsov signed a general cooperation agreement in Moscow on October 13.
UES and LUKOIL, which are the biggest suppliers of fuel and energy in Russia, agreed that cooperation will be based on contracts between LUKOIL subsidiaries delivering petroleum products and UES divisions in charge of energy supplies and related services.
The contracts will have priority status and the special terms of the general agreement will apply to them.
UES pledged to satisfy the need of LUKOIL units for heat and electricity on the basis of a flexible tariff policy in order to cut expenses and the cost of fuel and lubricants production.
UES will be involved in the development and coordination of the maintenance technology of LUKOIL power equipment and in purchasing special maintenance equipment for LUKOIL facilities.
LUKOIL is to guarantee additional supplies of petroleum products to UES facilities and reduce the current indebtedness of its subsidiaries for heat and electricity.
The LUKOIL Trading House and the UES Department of Power Stations were put in charge of coordinating the implementation of the agreement.
"I think that cooperation between Russia's biggest producers of fuel and energy will promote steady heat and power supplies to homes, resolve the problem of mutual indebtedness and benefit the national economy as a whole," Alekperov said.
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