Kazakhstan prolongs agrt on Russian oil transit through its territory to China
Majilis deputies have adopted the Law “On ratification of the Protocol of amendments to the Agreement between the Government of the Republic of Kazakhstan and the Government of the Russian Federation on cooperation in transportation of Russian oil through the territory of the Republic of Kazakhstan to the People’s Republic of China as of December 24, 2013,” Kazinform News Agency reports.
According to Almasadam Satkaliyev, who made a presentation of the document, the agreement was signed December 24, 2013 and was ratified in July 2014. The document is valid until January 1, 2024.
In his words, in 2017, the sides agreed to increase the transit of oil from 7 million tons to 10 million tons per year. In this regard, the parties expressed mutual interest in prolongation of the agreement from year 2024 to 2033 and began negotiations on introducing amendments to the agreement as of 2013.
As Almasadam Satkaliyev said, from 2014 to 2023, the overall transit of Russian oil to China through the territory of Kazakhstan made 90,899,271 tons, while the total revenue made $1,327,000,000 or 501,981,476,065 tenge.
“The Russian side informed that Rosneft had prolonged and signed its agreement with the CNPC on supply of 100 million tons of oil for a 10-year period. The negotiations ended with signing a protocol of amendments to the agreement in Saint Petersburg on June 16, 2023. The protocol has an updated data on the volumes of transit, tariffs and calculation of oil transit. The protocol also prolongs the agreement for a 10-year period to 2033 and sets the annual volume of Russian oil transit (10 million tons). The oil pumping tariff is set at $15 per a ton,” Almasadam Satkaliyev clarified.
During the negotiations, it was agreed to include TON-2 section to the route and set the tariff at $2.1 per a ton. All abovementioned propositions were agreed by the parties.
“The prolongation of the agreement will let ensure full utilization of the Pavlodar Oil Refinery with the oil delivered via Omsk-Pavlodar pipeline. There are no risks.For the period from 2024 to 2033, the expected revenue from the transit of Russian oil through the territory of the Republic of Kazakhstan to China via both sections is expected to make $1,710,000,000, taking into account the profit from replacement - $1,851,000,000,” said the Minister. He added this work is carried out in line with the President’s instruction following his visit to China on May 17, 2023 and as part of fulfillment of the presidential tasks outlined in his pre-election platform.
