Russia plans oil shipping to China through Kazakhstan
Meanwhile, the Russian Federation plans to begin shipping its oil to China via Kazakhstan. Ratification of the relevant international agreement was approved by senators of the Republic of Kazakhstan.
The purpose of the agreement is to create conditions for the transport of 1 million tons per year with a possible increase of the volume by several times, 7 perhaps. Ten million tons of Russian oil will be pumped through the traditional backbone-Irtysh Omsk-Pavlodar-Atasu to Alashankou — a town in China. The agreement was concluded for 5 years and provides for a fixed fee. The already installed transit fare is about $10 per 1 ton of hydrocarbons with a zero rate of VAT. At the same time the Ministry of Oil and Gas of Russia specified: the payment will be made with “live” money.
“We will also be able to produce replacement to 5 million tons for the needs of the Pavlodar refinery, followed by displacement of Kazakh oil shipping it to China, “- said Vice Minister of Oil and Gas of Kazakhstan Bolat Akchulakov.