Kazakhstan is negotiating with Russia to process Russian crude oil and return a portion of the refined fuel to help stabilize the Russian market.
Key facts
- •Kazakhstan is negotiating to refine Russian crude oil and return a portion of the fuel to Russia.
- •The arrangement aims to keep Kazakh refineries at full capacity while prioritizing domestic supply.
- •Russia has extended a ban on gasoline and diesel exports until the end of January.
- •The export ban follows Ukrainian drone strikes on Russian oil infrastructure.
- •Kazakhstan produces approximately 2% of the global daily oil supply.
Kazakhstan’s energy ministry is currently in negotiations with the Russian government to refine Russian crude oil at Kazakh facilities. Under the proposed deal, Kazakhstan would process the oil to meet its own domestic fuel needs and ship a portion of the resulting gasoline and diesel back to Russia.
Negotiation Details and Objectives
The energy ministry stated that a top priority of the talks is ensuring Kazakhstan’s domestic market needs are fully met. While specific production volumes, timelines, and the names of participating refineries have not been disclosed, the ministry noted that commercial traders will manage the shipments in accordance with Kazakh law.
Context of Russian Fuel Shortages
The discussions occur as Russia has extended its ban on gasoline and diesel exports through the end of January. Russian authorities implemented these restrictions to stabilize the domestic fuel market following a series of Ukrainian drone attacks on oil refineries and storage facilities. Kazakhstan’s Kondensat refinery has been processing Russian crude since mid-2024 and recently exported gasoline to Russia for the first time earlier this month.
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This article was independently rewritten by ManyPress editorial AI from reporting originally published by The Moscow Times.
