Russia asks Kazakhstan for gasoline, but it sets condition - Reuters
Photo: President of Kazakhstan Kassym-Jomart Tokayev and Russian President Vladimir Putin (Getty Images)
Russia is holding talks with Kazakhstan on importing a large shipment of gasoline. However, Kazakhstan has set strict conditions, Reuters reports.
Russia is seeking gasoline from Kazakhstan
Russia plans to reach an agreement with Kazakhstan on the import of approximately 50,000 tons of AI-92 gasoline. The supplies are needed to ease an internal fuel shortage caused by refinery downtime and unplanned maintenance, four industry sources told the outlet.
According to Reuters, the shutdown of several major oil refineries in central Russia after Ukrainian drone strikes has led to a decline in gasoline production, down by about 25% year-on-year as of the end of June.
Will Kazakhstan cover Russia’s fuel shortage?
Kazakh Energy Minister Erlan Akkenzhenov previously said that Astana had not received any official request from Moscow for gasoline supplies.
Sources note that Kazakhstan is a relatively small fuel producer compared to Russia, so the potential supply volumes are unlikely to be significant.
Kazakhstan currently has a gasoline surplus, but maintenance at the Atyrau refinery from June 26 to July 20 will reduce available stocks.
The Kazakh oil refinery Kondensat, which processes gas condensate from the TANECO refinery, has export quotas for fuel. However, amid drone strikes, the Russian company has fully suspended oil processing since June 12, which could potentially further limit crude supply.
What steps is Russia frantically taking to overcome the shortage?
Russia is urgently taking several steps to address the fuel shortage:
The Russian government is considering measures to stabilize the market, including:
- Restricting fuel exports,
- Increasing subsidies for oil refineries,
- Importing fuel, including via sea routes.
In July, Moscow also allowed refineries to produce gasoline and diesel for the domestic market using lower quality standards.
Kazakhstan’s barter proposal
A source in Kazakhstan said fuel supplies to Russia could be exchanged for Russian aviation fuel.
In July, Kazakhstan is expected to face a shortage of aviation fuel due to:
- Rising demand,
- Maintenance work at the Atyrau refinery,
- Reduced imports from Russia.
Separately, it has become known that Russia is importing gasoline by sea from India to ease the shortage, which is linked to successful Ukrainian strikes on its energy infrastructure.
Gas stations operated by Gazprom Neft and Lukoil have introduced fuel purchase limits in Moscow and the Moscow region. Customers are allowed to buy only 30 liters of gasoline or 60 liters of diesel per transaction.
