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Russia Ratifies Agreement on Pipeline Construction in Congo Republic
Russian President Vladimir Putin has signed an agreement ratifying between the governments of the Russian Federation and the Republic of the Congo on building an oil pipeline, connecting the Pointe-Noire – Loutete – Maloukou – Trechot, on the territory of the Republic of the Congo.
The agreement document titled “Federal Law On Ratifying the Agreement between the Government of the Russian Federation and the Government of the Republic of the Congo on Cooperation in Building the Pointe-Noire – Loutete – Maloukou-Trechot Oil Pipeline on the Territory of the Republic of the Congo,” was posted on June 7, 2025, to the Kremlin official website.
The agreement was in recognition of bringing bilateral relations into the next stage, after series of negotiations both at the Russia-Africa summits in 2019 and 2023. Russian and Congolese delegations discussed aspects of investment to pursue the construction of this energy infrastructure. The infrastructure initiative reflects the growing confidence in Congo’s energy potential, taking into account the active dynamism of dialogue between both leaders of Russia and Congo.
By this ratification, it has provided the legal framework and favorable conditions for implementing construction. According to the document, the authorized organizations responsible for implementing the project are Zakneftegazstroy-Prometey LLC and the National Petroleum Company of the Congo (acting as the customer). They will create a joint venture, in which Russia will hold a 90% stake and the Congo 10%.
“The implementation of the agreement will enable the Congo to ensure uninterrupted and stable supplies of petroleum products to the capital region, reduce logistics costs, gain the status of a key player in ensuring the region’s energy security – including the Democratic Republic of the Congo and the Central African Republic – and create additional jobs,” Russian Deputy Energy Minister Dmitry Islamov said while presenting the bill to the State Duma. “For Russia, this means expanding high-tech exports, creating an additional sanctions-resistant petroleum products distribution channel, and securing status as the region’s strategic energy security partner.”
To implement the project, a concession agreement will be concluded in the form of build-own-operate-transfer (BOOT) with the joint venture for constructing and operating the pipeline for 25 years, with a guaranteed tariff for pumping, which will ensure the pipeline’s utilization and return on investment.
It is planned that the petroleum product pipeline will be built within three years, and the overall operation of the pipeline is expected to last 30-40 years, Russian Deputy Energy Minister Dmitry Islamov further explained at the State Duma.
The agreement also “enshrines a number of obligations of the country, including providing the Russian side with the necessary permits and approvals, and granting the most preferential tax and customs regimes,” according to Islamov. “The responsibility of the Russian authorized organization is to attract commercial financing, so no additional expenditures from federal or local budgets will be required.”
Russian media Interfax reported that Russian Ambassador to the Congo Georgy Chepik previously said the main pipeline would run between the largest cities of the African country – Pointe-Noire and the capital Brazzaville.
The agreement stipulates that dispute resolution at the discretion of the Russian side will take place in Dubai (UAE) – either through the Dubai International Arbitration Centre (UAE) or in an ad hoc arbitration court administered by the mentioned arbitration center. According to the Unified State Register of Legal Entities, the owner of Zakneftegazstroy-Prometey is Alexander Ilyin.
Source: Kestér Kenn Klomegâh| Contributor| Russia
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CONGO construction RUSSIA
