Kazakh oil refinery to process Russian crude and export fuel back to Russia
Kazakhstan's Kondensat oil refinery will start processing Russian crude oil, sending most of the resulting gasoline and diesel back to Russia. The announcement came from Erlan Aqkenjenov, head of Kazakhstan's Energy Ministry.
Erlan Aqkenjenov, head of Kazakhstan's Energy Ministry, announced that the country's Kondensat oil refinery will begin processing Russian crude oil and will ship the resulting gasoline and diesel fuel back to Russia.
According to Aqkenjenov, a Russian company holds a 50% stake in the refinery, though he did not disclose its name. He said Kazakh authorities had received an official letter from Russia's Energy Ministry regarding the plan to supply the refinery with Russian oil.
Terms of the arrangement
Speaking to the Kazakh outlet Kapital, Aqkenjenov said he sees no obstacles to the deal, since 30% of the gasoline and diesel produced will stay in Kazakhstan while the remainder will be sent to Russia. He also noted that, to his understanding, no sanctions apply to this arrangement.
The Kondensat refinery was originally built at the Karachaganak field to supply diesel and gasoline to Kazakhstan's West Kazakhstan Region. According to Russia's Interfax news agency, its capacity reached roughly 850,000 metric tons per year by 2017.
Fuel shortages in Russia
The deal comes as Russia has been experiencing a fresh wave of fuel shortages since August, triggered by Ukrainian drone strikes on Russian oil refineries. Gasoline and diesel have become scarce in several regions, including Moscow and St. Petersburg, with prices climbing sharply at stations that still have supplies.
