Russia is reportedly in talks with Kazakhstan to import petrol as the Kremlin seeks to ease fuel shortages amid drone-hit refinery outages.

Reuters reported the situation on June 24, citing industry sources.

Shutdowns at several large refineries in central Russia, in the wake of stepped-up Ukrainian drone attacks, cut Russia’s petrol output by around 25% y/y as of late June, the news service’s report said. Some analysts assess the country's drone-targeted refining industry as "bruised but not broken" as things stand.

Russia is seeking around 50,000 tonnes of AI-92 standard gasoline from Kazakhstan, Reuters added.

The Russian government, meanwhile, is considering a range of measures to stabilise the domestic fuel market, including export restrictions, increased subsidies for refiners and fuel imports. The move to import fuel is plainly an unusual step for Russia, one of the world’s largest fuel exporters.

Kazakhstan’s Energy Minister Erlan Akkenzhenov was reported as saying that Astana had not received an official request from Moscow for gasoline supplies.

While Kazakhstan is a much smaller fuel producer than Russia, the country currently has a surplus of petrol, making limited exports possible. However, planned maintenance at the Atyrau refinery from June 26 to July 20 is expected to reduce available reserves.

One potential supplier is Kazakhstan’s Kondensat refinery, which processes gas condensate from Russia’s TANECO refinery and holds fuel export quotas, the report said. Kondensat exported 15,207 tonnes of AI-92 and AI-95 gasoline to Georgia in May.

However, supply chain risks remain. TANECO refinery, owned by Tatneft, halted crude processing on June 12 following a drone attack, potentially limiting feedstock available to Kondensat.

Industry sources were reported as stating that a possible arrangement could involve petrol shipments from Kazakhstan to Russia in exchange for Russian jet fuel.

Kazakhstan is facing a potential jet fuel shortage in July due to rising seasonal demand, maintenance at Atyrau and lower aviation fuel imports from Russia.

Separately, Kazakhstan announced it has tightened border controls to prevent fuel smuggling to Russia as its neighbour to the north’s gasoline market shortages increase incentives for illegal cross-border sales. Prime Minister Olzhas Bektenov instructed officials to strengthen inspections and prevent unauthorised exports.

Kazakhstan’s Energy Ministry said domestic refineries were continuing to operate normally and that stocks of petrol, diesel and aviation fuel exceeded 1mn tonnes.

The price differential remains a key concern. Fuel prices in Kazakhstan are significantly lower than in Russia, creating persistent incentives for smuggling despite existing export controls.

A broader regional impact of Russia’s refining difficulties is also becoming visible – Tajikistan and Kyrgyzstan, both heavily reliant on Russian fuel supplies, have seen pump prices rise in recent months as supply pressures spread across Eurasia.

Also on June 24, it was reported by Azattyk that a Ukrainian drone attack on Russia’s Orenburg gas processing plant near the border with Kazakhstan has not disrupted gas supplies to consumers in Kazakhstan. The media outlet cited the Kazakh energy ministry.

Kazakhstan sends around 9bn cubic metres (bcm) of raw gas annually to the Orenburg facility, where the gas is processed before being re-exported back to Kazakhstan for domestic consumption. The ministry said supply routes were quickly adjusted following the attack to prevent disruptions.

“The dispatching service has urgently adjusted logistics, and the gas supply is being carried out via an alternative route,” the ministry reportedly said. “Fuel supplies are being continuously delivered from other locations.”

Ukrainian drones struck the gas processing plant in Russia’s Orenburg Region overnight, the news outlet’s report said. Fires were reported in several areas of the facility following the attack.

Kazakhstan’s energy ministry did not specify whether the incident could affect oil and gas condensate production at the Karachaganak field, one of the country’s largest hydrocarbon assets, the report noted.

Karachaganak is a major source of gas supplies to the Orenburg plant and plays a critical role in Kazakhstan’s gas production and export infrastructure.

The incident has raised concerns because previous disruptions at Orenburg affected upstream production in Kazakhstan. Following a drone attack last year, the Orenburg Gas Processing Plant temporarily stopped receiving raw materials from Karachaganak.