Rosneft and Carbon Trade & Finance SICAR S.A. joint venture between Dresdner Bank and Gazprombank signed the agreement for the purchase of emission reduction units
The action took place resulting from the implementation of programs for the disposal of associated gas belonging to the Rosneft Kharampurskoye and Khasyreiskoye oilfields in West Siberia under the Kyoto Protocol.
According to the signed document, Rosneft will provide Carbon Trade & Finance ERU beforehand specified amounts (emission reduction units or ERU is equivalent to one tone of CO2) in 2008 - 2012.
In accordance with the terms of the Agreement, in January 2009, Carbon Trade & Finance SICAR S.A. transferred to Rosneft advance payment. Thus, Rosneft became the first largest Russian company, attracted foreign capital for the projects implemented under the 6-th article of the Kyoto Protocol.
According to that article Russia can get investments for so called combine realization projects, which propose combine profit for quotes on disposals.
The Kyoto protocol is an international legal document adopted in Kyoto (Japan) in December 1997 as the addendum to the United Nations Framework Convention on Climate Change.
It was then ratified by more over than 160 states with the overall responsibility for the 60% of the global emission into the atmosphere. Russia has committed to maintain its annual emissions at the level of 1990 in the course of 2008 - 2012.
The protocol provides for the so called flexible mechanisms. It also includes trading in quotas. Countries and companies located in such countries can purchase and trade greenhouse gas emission quotas on the national, regional and international markets.
Associated gas utilization Program at Kharampurskoye and Khasyreiskoye fields is an integral part of the Rosneft gas program, which is aimed at 95 per cent associated gas utilization.
The total amount of investment directed by the Company for associated gas recycling on those fields is more than 5 billion rubles. The conclusion of the Agreements for the sale of ERUs will improve the economic efficiency of projects.
The Agreement of Rosneft and Carbon Trade & Finance SICAR S.A. is the next step in the development of international business cooperation in the field of environmental protection. Earlier, in September 2008, Rosneft signed a similar agreement with the World Bank on Komsomolskoye field also located in West Siberia.