...

Minister: By supplying Kazakh oil to plants without export duties, Russia loses $2 billion year

Oil&Gas Materials 2 February 2011 13:42 (UTC +04:00)

Kazakhstan, Astana, Feb. 1 / Trend A.Maratov /

Russia loses $2 billion a year by supplying oil to Kazakh refineries without applying export duties as a part of the single economic space initiative. The process will continue until Jan. 1, 2014, Kazakh Oil and Gas Minister Sauat Mynbayev told Trend today.

The Kazakh government has managed to maintain Russian oil supplies (7 million tons) for the Pavlodar Petrochemical Plant and Shymkent Plant without export duties until 1 Jan. 2014, he said.

"The Russian side reasonably raises the question - Kazakhstan produces 80 million tons of oil annually, of which 73 million tons are exported. In that case, why should the Russians supply oil to Kazakhstan's domestic market without export duties," he said.

He added that the issue was resolved in the context of all other questions concerning the creation of a single economic space.

"This means that the situation will last until 2014," he said.

According to him, a plan has already prepared to create the necessary system to supply Kazakh oil to refineries after the 2014 mark, he said.

Kazakhstan has three refineries - Atyrau, Shymkent and Pavlodar.

Latest

Latest