Commodities
Home›Commodities›Energy›Russia seeks Kazakhstan refining deals to ease fuel sh…
Russia seeks Kazakhstan refining deals to ease fuel shortages
Kazakhstan says it is in talks with Moscow to process Russian crude, sell some fuel locally, and return some products to Russia, while Russia has extended gasoline and diesel export curbs through January 31, 2027.
Russia is reportedly turning to Kazakhstan to help process Russian oil as damage to refinery capacity worsens fuel availability at home, according to OilPrice. Kazakhstan said it is in talks with Moscow to refine Russian crude at Kazakh refineries, sell some resulting fuel in Kazakhstan, and send a portion back across the border to Russia.
The outlets says no volumes, commercial terms, or specific refineries have been named. Kazakhstan’s Energy Ministry said market participants would decide where the products go, and that using Russian crude could help keep Kazakh refineries operating at steadier rates while adding fuel to the domestic market.
For Russia, the approach is described as a workaround that involves exporting crude, paying a neighbor to refine it, and then importing gasoline or diesel that Russia cannot reliably produce due to refinery damage.
OilPrice links the shift to months of Ukrainian attacks on Russian refining and export infrastructure, including the Omsk refinery in Siberia near the Kazakh border. It also notes Russia has extended restrictions on gasoline and diesel exports through January 31, 2027, after it previously called the diesel ban temporary once supplies recover.
Latest closeWTI crude $84.41 ▲6.5%|Gasoline (RBOB) $3.215 ▼3.6%