Kazakhstan in talks to process Russian crude amid Russia fuel shortages
Kazakhstan is in talks with Russia to process Russian oil at its refineries with the products to be sold domestically and supplied back to Russia, the Ministry of Energy said.
"Negotiations are underway regarding the processing of Russian-origin oil, with the subsequent sale of the resulting products within Kazakhstan and the export of a portion of the output to the Russian Federation, the ministry said in a statement.
It said that the move was made in order to ensure stable capacity utilization at Kazakh refineries and local supply.
The ministry did not specify the volumes, processing terms, or the specific refineries involved in the talks. It said that market participants would determine shipment destinations independently.
Russia is experiencing acute fuel shortages in various regions amid a wave of Ukrainian drone strikes on oil refineries.
This month, Ukraine struck the Omsk refinery, Russia's largest, which is located deep in Siberia, close to the Kazakh border.
Kazakhstan accounts for around 2% of global daily oil supply and recently has begun supplying some refined petroleum products to Russia.
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