Kazakh Supply Deal With Russia To Stabilize Flow To Pavlodar Refinery

Russia’s Deputy Finance Minister Sergei Shatalov told Kazakhstan-Interfax last week that an agreement was reached between Moscow and Astana on the harmonization of national export tax policies. Following the abolition of VAT charges on hydrocarbon sales under a customs union between Russia, Kazakhstan and Belarus, Mr Shatalov said Russia had lost around $780mn since the beginning of the year as a result of duty-free oil exports. Kazakhstan imported 7mn tons of Russian oil in 2011 to supply the Pavlodar refinery (MEES, 28 May). Kazakhstan agreed, according to Mr Shatalov, to compensate Moscow for its revenue losses by providing Russia with 2mn tons/year (40,000 b/d) of Kazakh oil via the Atyrau-Samara pipeline. The agreement is expected to stabilize the flow of Russian oil to the Pavlodar refinery.

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