8 june

The transit of Kazakh oil through the system of the Russian company Transneft has become less attractive due to sanctions, Deputy Chairman of the Board of JSC NC KazMunayGas Dauren Karabayev said at a briefing on the company's financial results for the first quarter of 2022.

As the publication reports SK News, KazMunayGas directs the oil produced in Kazakhstan through the Atyrau-Samara pipeline and then through the system of the Russian Transneft. However, now Urals crude oil is sold on the world market at a discount. And this reduces the attractiveness of this route. Dauren Karabayev noted that the discount from the Brent reference grade from the beginning of the year reached $ 40, and at the end of the first quarter was $ 31.

"At the same time, we pay taxes – the mineral extraction tax, the rent tax on exports and the export customs duty – based on the price of Brent," Dauren Karabayev explained. CPC Blend oil grade, which is pumped through the pipeline of the Caspian Pipeline Consortium (CPC), is currently trading at a discount of about $ 6-8, which is "within historical fluctuations."

Nevertheless, Kazakh oil will not be under sanctions even if it transits through Russia, Deputy Chairman of the Board of KazMunayGas Dauren Karabayev said.

Illustrative photo from open sources