Kazakhstan to transit Russian oil to China.

By bne IntelliNews March 5, 2013
Kazakhstan and Russia reached a preliminary agreement on transit of 7mn tonnes of Russian oil via Kazakh territory to China starting in 2014, deputy PM Kairat Kelimbetov has announced in an interview to Russian newspaper "Kommersant Vlast". Russian state-controlled Rosneft will supply oil. Kelimbetov informed that a swap deal was agreed - 7mn tonnes of Russian oil will be supplied to Pavlodar refinery while the same amount of Kazakh oil will be delivered to China via Atasu-Alashankou pipeline. If the deal is finalized, it will be signed for 5 years. The arrangement needs to be approved at the highest level, Kelimbetov explained. Russian side did not comment on the deal. Significantly, Kazakhstan and Russia had disagreements over Russian oil and oil products supplies to Kazakhstan. At the same time, several weeks ago, there were reports in the Russian media that Rosneft was interested in oil transit via Kazakhstan to China but Russian pipeline operator Transneft was reluctant to agree for the scheme as it would lose an estimated USD 1.5bn. In Jan-Feb, Russian supplies 1.176mn tonnes to Kazakhstan, which means a growth of 77.3% y/y. At the same time, Kazakhstan transited 3.067mn tonnes of oil via Russian territory.

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