Russia and Kazakhstan reach no agreement on oil exchange mechanism
Azerbaijan, Baku, Oct. 25 / Trend E. Kosolapova/
Russia and Kazakhstan have not yet agreed on an oil exchange mechanism, which should start operating from Jan.1 2014, Russian Kommersant newspaper reported.
The final document on the oil exchange mechanism between Russia and Kazakhstan has not been signed, the sources close to the government told Kommersant. This information was confirmed by the Energy Ministry.
According to the source, the final document adoption was delayed because of the unresolved issue of 70 billion rubles (31.66 rubles = $1) export duties which Russian budget should get in 2014-2016. The parties have not agreed who would pay this sum and on which legal basis it would be done.
Currently, Russian supplies oil to Kazakhstan and Kazakhstan delivers the same volumes of oil to Russia. But the agreement which envisages such as scheme expires on December, 31 2013.
In 2012, the parties agreed that Astana would reimburse Russian budget losses for tax-free oil supplies to Kazakhstan from early 2014.
Kazakhstan produces and exports large amount of oil, meanwhile it imports some oil and oil products from Russia free of duty within the Customs Union. The need in oil supplies from Russia mainly results from specifications of the Kazakh Pavlodar petrochemical plant, which focuses on refining of West Siberian oil from Russia. So, its work is directly dependent on Russian oil supplies.
Earlier, Rosneft agreed with Chinese CNPC to supply additional volumes of oil to China.
According to the source, Kazakhstan and Russia consider a possibility of Kazakh oil supply to China to the amount of 7 million tons (Russia supplies the same volume to Kazakh Pavlodar refinery) as a part of Russian oil supplies.
"But there is a question of filling the Russian budget: the use of Russian oil could be accepted as re-exports, and Russia could bear significant losses as a result," the source said.