Azernews.Az

By Sara Rajabova

Kazakhstan plans to prohibit gasoline and diesel fuel imports from its biggest trade partner neighboring Russia.

Magzum Mirzagaliyev, vice minister of energy explained that from March 5th Kazakhstan will introduce a ban on gasoline and diesel fuel imports from Russia, Tengrinews reported.

“From March 5 we are introducing a 45-day-long ban on all imports of gasoline and diesel fuel from Russia. The two countries have agreed that in the current year Kazakhstan will import 1,100,000 tons of gasoline and around 760 000 tons of diesel fuel,” Mirzagaliyev said.

He added that in the beginning of the year Kazakhstan has imported a substantial part of this volume.

“In order to make sure we can import the rest of the volume more evenly throughout the year, and thus prevent fuel shortages, we have decided to introduce the ban,” Mirzagaliyev said.

He went on to note that this measure is directed to regulate the energy market.

Mirzagaliyev noted that the decision will have no impact on the prices of gasoline.

“The measure will have no impact on the price of fuel. The energy ministry has set price ceilings for both gasoline and diesel fuel”, he said, emphasizing the ban will only be in place for 45 days.

Kazakhstan’s domestic oil refineries are responsible for only 60 percent of the country's fuel consumption. The other 40 percent comes from abroad, mainly from Russia.

Earlier in 2014, Mirzagaliyev said Kazakhstan's KazMunaiGas National Oil and Gas Company has signed several contracts with large petroleum suppliers from Russia and Azerbaijan to resolve shortage of petroleum products in the country. He also added KazMunaiGas agreed on importing about 180,000 metric tons of petroleum products from Russia and 10,000 metric tons from Azerbaijan.

Kazakhstan has some oil refineries, which are located in Shymkent (country's southern part), Atyrau (western part) and Pavlodar (northern part).

Experts say that the energy-rich country needs to modernize its technology in order to fully meet the country's fuel need. The reconstruction of Kazakhstan's oil refineries or construction of new ones will help alleviate fuels and lubricants shortage in the country.

Artem Ustimenko, analyst from the Agency for Research on ROI, told Kazakh media earlier that Kazakhstan was in dire need of modernizing its refineries in order to produce suitable fuel for contemporary cars.

Kazakhstan is having trouble increasing its AI-92 output because it inherited its refineries from the Soviet Union, but fuel standards were so completely different back then that most equipment are in need of comprehensive updates.

Only after domestic refineries are modernized will it become possible for Kazakhstan to fully cover its domestic fuel market.

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Sara Rajabova is AzerNews’ staff journalist, follow her on Twitter: @SaraRajabova

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