During a plenary session, the Mazhilis deputies ratified the Agreement between the governments of Kazakhstan and Russia on the transportation of Russian oil through the territory of the republic to China. The Minister of Energy, Almasadam Satkaliyev, noted that the agreement was originally signed in 2014, and its term expired earlier this year. Therefore, the parties have decided to extend the agreement until 2033.
Over this 10-year period, Russia plans to supply 100 million tons of oil to China. The extension of the agreement will ensure the loading of oil from the Pavlodar Oil Refinery, which receives oil via the Omsk-Pavlodar pipeline. Minister Satkaliyev stated that there are no risks involved. The expected revenue from the transit of Russian oil through Kazakhstan to China on both sections from 2024 to 2033 will amount to $1,710,000,000, and considering the profit from substitution, it will reach $1,851,000,000.
According to the Minister, the ratification of the agreement will not lead to any negative socio-economic or legal consequences, nor will it require additional financial expenses from the republican budget. Previously, Kazakhstan and Russia agreed to increase the transit of Russian oil to China.
