Home›Commodities›Energy›Kazakhstan weighs exports to Russia as sanctions and d…

Kazakhstan weighs exports to Russia as sanctions and demand pressure mount

Russia has asked for emergency energy supplies and refining arrangements after Ukraine drone damage, but Kazakhstan’s refineries have reportedly declined exports and must also address record summer domestic demand.

Reported · Written up by our desk · Energy

Kazakhstan is trying to avoid enabling Russia’s war effort while facing pressure from Moscow to provide emergency energy supplies and refining support, as Ukraine’s ongoing drone campaign has damaged Russia’s energy infrastructure and military-industrial complex, according to OilPrice. The outlet reports that Russian officials have sought refining arrangements from Central Asian states and are also exploring offshoring options for arms production. While Kazakhstan appears reluctant to take steps that could be seen as siding with Russia, officials in Astana are also mindful that a refusal could trigger retaliation. On August 26, the Moscow Times, citing Reuters, said that some of Kazakhstan’s largest refineries declined to export oil and gas products to Russia, even though the Kazakh Energy Ministry had approved shipments of up to 17,500 tons of gasoline. The hesitation is reportedly tied to the risk of secondary sanctions for facilitating Russia’s war effort. At the same time, Kazakhstan is not shutting off all cooperation with Russia. On August 27, Kazakhstan’s Energy Minister Yerlan Akkenzhenov confirmed that a relatively small facility in the West Kazakhstan region will refine Russian crude and send most of the finished products back to Russia, with the country also contending with record domestic demand this summer.

Latest closeWTI crude $81.58 ▼0.9%|Gasoline (RBOB) $2.915 ▼10.4%

More like this

Sources