The president of Kazakhstan, Kassym-Jomart Tokayev, signed a law approving amendments to the intergovernmental agreement with Russia on cooperation in moving Russian oil from Kazakhstan to China, a deal originally dated December 24, 2013. This information was shared by a Kazakh news source and later confirmed by official channels.
The protocol is expected to take effect in June 2023 with formal acceptance in St. Petersburg. It specifies a shift in the designated implementer for the agreement on the Kazakh side, naming the Ministry of Energy, and on the Russian side, Rosneft is designated as the authorized entity responsible for execution.
The amendments extend the agreement for another decade, now running through January 1, 2034. It was indicated that Kazakhstan will apply zero value added tax to oil transportation services along the routes covered by the protocol. The arrangement envisions steady, long-term transit of 10 million tons of Russian oil each year.
Key changes include the introduction of the second section of the TON-2 route, connecting Tuymazy to Omsk and Novosibirsk-2. The extension would allow the Pavlodar refinery complex to be supplied with fuel carried via the Omsk-Pavlodar oil pipeline. Projections for 2024 to 2033 estimate transit-related revenues through Kazakhstan to China exceeding 1.7 billion dollars for the two segments combined.
On April 8, Reuters, citing unnamed sources, reported that Russia urged Kazakhstan to establish a gasoline reserve of 100 thousand tons. One source suggested agreement had been reached on utilizing such gasoline reserves by Russia, though details remained tentative. The Russian Ministry of Energy later disputed the claim that Kazakhstan authorities had been approached to initiate gasoline deliveries from the republic.
Previously, analysts noted a potential shift in Russia’s demand for oil and natural gas as the world moves toward 2050. The evolving energy landscape remains a topic of strategic discussion for both nations, with ongoing considerations about transit corridors, pricing, and energy security across Eurasia. [Reuters, April 8, 2024; official statements and subsequent clarifications]