The Parliament of Kazakhstan has extended the agreement with Russia on the transit of oil to China through its territory for another 10 years, Report informs referring to Kazakh media.
“The Senate of Kazakhstan today ratified the protocol to the Kazakh-Russian intergovernmental agreement on cooperation in the field of transporting Russian oil through the territory of the Republic of Kazakhstan to China,” reads the statement.
The protocol will enable Kazakhstan to both sell its own oil by replacing Russian oil and receive funds for transporting Russian oil in transit through the country’s territory.
In addition, this will allow Kazakhstan to utilize the production capacity of the Pavlodar oil refinery.
The protocol updated information on transit volumes, tariffs and payments for oil transit. The main pipeline system will transport 10 million tons of Russian oil per year.
The agreement is extended until January 1, 2034.
The agreement itself between the government of Kazakhstan and the government of Russia on cooperation in the field of transporting Russian oil through the territory of Kazakhstan to China was concluded on December 24, 2013.
The cost of oil transportation, according to the agreement, is $2.1 per ton for the entire duration of the agreement and is paid in tenge at the rate established by the National Bank of the Republic of Kazakhstan at the time of payment with zero VAT.