Azernews.Az

By Abdul Kerimkhanov

Kazakhstan's economy had a raw material focus so far. State budget revenues and the volume of financial injections from foreign countries are directly dependent on the fuel and energy and mining industries.

Russian President Vladimir Putin approved the law “On ratification of the protocol on amendments to the agreement between the Government of Kazakhstan and the Government of Russia on trade and economic cooperation in the supply of oil and oil products to Kazakhstan on December 9, 2010”.

The document is published on the official portal of legal information. The protocol was signed in Moscow on October 3, 2018.

The protocol features a list of petroleum products banned or restricted for export from Russia to Kazakhstan, as well as the list of petroleum products prohibited or restricted for export from Kazakhstan outside the customs territory of the EAEU.

It is stipulated that such a list is tentatively coordinated with the interested state authorities by the executive authorities before drawing up indicative balances.

The lists are approved by the competent authorities of both countries prior to the compilation of an indicative balance of production, consumption, supply, import and export of oil and oil products.

The document will help simplify the procedure for regulating the oil and oil products market between Russia and Kazakhstan and will allow removing some restrictions on their supply for Russian companies.

In addition, the protocol establishes exemptions for prohibited or restricted for export petroleum products.

Thus, bans or restrictions are applied without prejudice to the lease agreement of the Baikonur complex between the governments of Russia and Kazakhstan of December 10, 1994, do not apply to petroleum products exported as humanitarian aid in accordance with the legislation of Kazakhstan, as well as petroleum products exported from Kazakhstan for the purpose of carrying out laboratory researches and tests.

Kazakhstan ratified the treaty on March 2. The first President of the Republic, Nursultan Nazarbayev, signed the document.

According to the changes, the parties in the mutual oil trade do not apply export customs duties. In addition, in accordance with the law, the oil exported from January 1, 2014, from Russia to Kazakhstan, for accounting purposes, is subject to customs declaration in Russia if it was exported outside the EAEU.

Diplomatic relations between Kazakhstan and Russia were established on October 22, 1992.

The trade turnover of Kazakhstan and Russia amounted to $ 17.6 billion in 2018. This is 7.2 percent higher than the previous year.

According to the figures for January-November 2018, Russia ranks first in terms of imports to Kazakhstan. Russia's share among the countries supplying products to Kazakhstan is 37.3 percent.

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Abdul Kerimkhanov is AzerNews’ staff journalist, follow him on Twitter: @AbdulKerim94

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