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Kazakhstan Refinery to Reportedly Process Oil for Russia

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The Kondensat oil refinery in western Kazakhstan will reportedly process Russian crude and provide 70% of its diesel and gasoline output to Moscow amid shortages, media outlets reported Tuesday, citing Kazakh energy minister Yerlan Akkenzhenov.

The governments have reached this agreement, considering that 50% of the refinery is owned by a Russian company that is not included on any sanctions list, Kazakh news outlet Kapital reported.

The scheme may face uncertainties as Ukraine's allies tighten sanctions to curb Moscow's war revenue, according to the Kyiv Independent. Ukrainian attacks on Russian energy infrastructure have recently intensified, disrupting fuel supplies in Russia.

Kazakh and Russian energy ministries did not immediately respond to' requests for comment.

Meanwhile, Kazakhstan aims to more than double its oil refining capacity to 40 million metric tons per year to increase exports of petroleum products, according to Akkenzhenov, as cited by Kazakhstan Today.

Of the 100 mmt of domestically produced oil, the country currently processes about 19 mmt per year.

The government is reportedly considering four potential sites for its fourth oil refinery, including the Mangystau, Atyrau, Turkistan, and Ulytau regions. A feasibility study is ongoing, with a final decision on the location expected by year-end.

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