Key facts
- Russia is seeking to process its crude oil in Kazakhstan due to damage to its own refineries.
- Kazakhstan is in talks with Russia about processing crude and returning refined fuel.
- The plan aims to address fuel scarcity in Russia and support Kazakhstan's domestic market.
- Russia has extended its ban on gasoline and diesel exports until January 31, 2027.
Russia is reportedly seeking assistance from Kazakhstan to process its crude oil due to significant damage to its domestic oil refinery capacity, largely attributed to Ukrainian attacks. Talks are underway for Kazakhstan to refine Russian crude, supply some of the resulting fuel to its own market, and send a portion back to Russia.
While no specific details regarding volumes, commercial terms, or refineries have been disclosed, Kazakhstan's Energy Ministry indicated that market participants would ultimately decide the distribution of the refined products. For Kazakhstan, this arrangement could help maintain stable refinery operations and bolster domestic fuel supply. For Russia, it represents a workaround to secure gasoline and diesel it can no longer reliably produce at home.