Kazakhstan wants to bypass Russia to export its oil
Kazakhstan’s president today ordered his government to find new ways to export its oil without going through Russia, after friction between the two neighboring countries over Ukraine.
During a meeting of his government, the President of the Republic, Kassym-Jomart Tokayev, declared that the establishment of a new export route for Kazakh crude through the Caspian Sea had become a ” priority “. He also ordered his government to “taking steps to increase capacity” of certain sections of a pipeline transporting oil to China, according to the Kazakh presidency.
The idea of a trans-Caspian pipeline comes up regularly, but it never came to fruition, Russia not seeing the project in the best light.
Currently, about three quarters of Kazakh oil is exported through a pipeline leading to the Russian port of Novorossiysk in the Black Sea.
However, these exports have been interrupted twice since the launch of Moscow’s offensive in Ukraine at the end of February, many observers suspecting the Kremlin of wanting to put pressure on Kazakhstan, Russia’s traditional ally, for its neutrality in this conflict. These interruptions, in March and June, were officially justified by damage caused by a storm and the risks linked to the presence of mines dating from the Second World War.
A third disruption nearly came this week after a Russian court ordered a 30-day halt to oil deliveries through the 1,500-kilometre pipeline, citing violations of environmental standards.
The consortium operating the pipeline has appealed, which has suspended the court decision for the time being, the Kazakh energy minister announced on Thursday. Kremlin spokesman Dmitry Peskov said he was “unlikely” that the decision of the Russian court is linked to political considerations, while underlining the “need to have additional contacts” with Kazakhstan.
Mr. Tokayev pledged this week to strengthen energy cooperation with the European Union – the latter is also seeking to reduce its dependence on Russian hydrocarbons. Last month, the Kazakh president caused astonishment at an economic forum in Saint Petersburg by saying that he would not recognize pro-Russian separatist entities in Ukraine as states.