Belarus, Kazakhstan Agree On Oil Supplies, Need Russia’s Approval

Belarus and Kazakhstan have agreed on oil supplies and are launching commercial negotiations. However, there’s a key obstacle – Russia has to say yes to its transit.

The parties fully agreed on the text of the agreement, however, before the signing it will be subject to domestic approval. The agreement doesn’t specify the volume and price of oil and oil products. Logistics is also under discussion.

According to Minister of Energy of Kazakhstan Kanat Bozumbayev, the document will include rules and conditions to let the Belarusian partners make business with Kazakhstan companies. He noted that Belarus agreed not to re-export oil products from Kazakhstan.

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However, a key obstacle to the start of the supply of Kazakhstani oil has not yet been removed – Moscow has to approve its transit through Russia’s territory.

“We have agreed to hold consultations with Russia in the near future. If we agree, Kazakhstan’s oil will be delivered to Belarus through the pipelines in Russia. I think we will reach an agreement,” Alexander Lukashenko said on Friday.

Besides oil, Minsk was interested in the supply of gas oil, fuel oil – the products that could be processed. Kazakhstan’s refineries occasionally supply oil to Belarus to reload secondary processes and petrochemical industries. The deliveries are planned to be increased up to 1.5−2 million tons per year.

Dark petroleum products can be delivered by rail. As for oil, the most advantageous option to transport it to Belarus from Kazakhstan is through a pipe passing through the territory of Russia.

Source: vlast.kz