Kazakhstan to Finish Oil, Gas Talks with Russia by July 2013

January 29, 2013

According to Prime, Kazakhstan will complete negotiations over oil and gas supplies with Russia by July, Kazakh Prime Minister Serik Akhmetov said on Monday.

“Today we are holding proactive negotiations regarding mutual oil and gas supplies with our Russian counterparts. We have to discuss issues that are quite difficult, including the supplies of Kazakh gas to the Orenburg refinery and Russian oil to the Pavlodar petrochemical plant,” Akhmetov said.

Kazakhstan produces and exports oil but has to import oil products from Russia duty-free in accordance with the regulations of the Customs Union of Russia, Kazakhstan, and Belarus. Any losses incurred by Russia from supplying Kazakhstan with oil and oil products are to be compensated by Astana in the form of counter deliveries of oil.

In May, Russia halved supplies to the Pavlodar refinery, saying that Kazakhstan has yet to approve the oil and oil products export duties calculation method needed to establish common regulations within the Customs Union.

Copyright 2013, Prime. All rights reserved.