One of the structures of the Kazakh state company Kazmunaigas has begun purchasing tankers to transport oil by sea, bypassing Russia, Bloomberg writes. Kazakhstan now supplies 80% of its oil to the EU and China via a pipeline that runs through Russia.
For supplies through the Caspian Sea, Kazakhstan has already purchased two tankers with a deadweight of 80 thousand tons each. Two similar tankers are planned to be purchased for transportation across the Black Sea, Erlan Akkenzhenov, Deputy Minister of Energy of Kazakhstan, told Bloomberg.
According to him, Kazakhstan intends to increase transportation across the Caspian Sea fivefold by the end of the year in order to reduce dependence on supplies through Russia.
Earlier, Kazakh President Kassym-Jomart Tokayev proposed to Germany to increase the rate of oil supplies from 200 thousand tons per year to 1.2 million tons. Kazakh oil reaches Germany through Russia – via the Druzhba oil pipeline – and to increase supplies, Kazakhstan needs permission from the Russian Ministry of Energy, which has so far been received only orally, reports Sibir.Realii.
Kazakhstan has generally increased oil supplies to the European Union in 2023. According to the Bureau of National Statistics, in the first quarter, Kazakhstan exported 71% of oil to the EU; in the same period last year, supplies were at 65%.
In addition to Germany, Kazakh oil is actively purchased by Italy, which was supplied by Lukoil before the war in Ukraine: supplies of Kazakh oil to Italy increased in the first quarter to 38% of total exports, last year the share was 28%. The share of Kazakh oil exports to France increased from 5% to 7%, to Romania – from 4% to 7%.
Oil and gas revenues of the Russian budget in January-June decreased by 47% on an annual basis. EU countries introduced a price ceiling on Russian oil at the beginning of December 2022 due to the invasion of Ukraine. The price cap on Russian oil was part of another package of sanctions in response to Russia’s invasion of Ukraine. In addition, Russia has lost part of the European pipeline gas market due to the suspension of the Yamal-Europe and Nord Stream-1 projects. Russian President Vladimir Putin responded by banning supplies of Russian oil and petroleum products to countries that use price ceilings. Russian oil, however, can enter the European market through third countries. There were also reports of schemes through which Russia can sell oil for more than the ceiling.