RUSSIA, KAZAKHSTAN TO INK PRODUCT-SHARING AGREEMENT

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ASTANA, October 8, (RIA Novosti) - Russia and Kazakhstan are to sign a joint product-sharing agreement for the Caspian Sea's Kurmangazy oil deposit before the year is out.

This was disclosed here today by Russian Prime Minister Mikhail Fradkov, after his talks with Kazakh Prime Minister Danial Akhmetov wound up in Astana.

Both Russia and Kazakhstan are expected to solve the problem of disputed border-line territories in the near future, Fradkov told his audience.

We discussed hitherto unsettled border-control issues today; we believe this problem has become less serious, and that the sides have stated their positions more clearly, he went on to say.

We have heard each other, enabling experts to do their work nowadays, Fradkov noted.

Two disputed border sectors still remain to be demarcated; a gas-condensate deposit is located in one such sector, with the other one boasting a water intake.

Danial Akhmetov addressed the joint press conference, noting that the Kazakh-Russian border will apparently be demarcated before the year is out. We have ordered our experts to ensure this problem's logical solution before the year is out, Akhmetov added.

The border-demarcation task highlights mutual trust between our countries and peoples, in the first place, Akhmetov stressed.

At the same time, several issues have to be settled, Akhmetov added. We have prepared compromise proposals on eight sectors, Akhmetov said.

Among other things, Ogneuporny town is located in Kazakhstan; however, all of its residents are Russian citizens; looks like, specific territories will be exchanged on a parity basis, Akhmetov noted.

We strive to heed the interests of every state, he stressed.

Moreover, one should mention a number of proposals dealing with the Kazakh-Russian border's disputed sector (where the gas deposit is located), Akhmetov noted. These are compensation proposals, he added.

For his own part, Fradkov discussed gas-transit issues with journalists. According to Fradkov, the relevant fuel-and-energy balance is currently being finalized; the signing of a long-term oil-transit document is quite topical.

We'll complete such work in the near future, heeding the interests of Kazakhstan and Russia, i.e. the use of oil and gas on domestic markets and in third countries, Fradkov said.

The Russian Prime Minister praised his talks with the Kazakh Prime Minister. We have attained high-level cooperation in every sphere, expanding various spheres of our cooperation, which doesn't boil down to the fuel-and-energy sector alone, Fradkov said. In his words, both sides discussed hi-tech cooperation and co-production arrangements.

Moreover, both Russia and Kazakhstan will settle all contentious issues before the year is out, Fradkov noted. Danial Akhmetov is to visit Moscow in December 2004; we'll compare our positions during his visit, hearing ministerial reports on the implementation of specific decisions and eliminating all unsolved problems by late 2004, Fradkov said in conclusion.

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