Kazakhstan and Russia have agreed on terms for processing Russian oil at the Condensate refinery in the West Kazakhstan region, with up to 30% of the petroleum products produced to remain on the domestic market, Energy Minister Yerlan Akkenzhenov said at a Government briefing, Qazinform News Agency reports.
According to the minister, the refinery is located close to the Russian border and is not connected by pipeline to either Kazakhstan's or Russia's pipeline networks. Crude oil will therefore be delivered by rail, with volumes depending on available railway capacity.
“We have an agreement that up to 30% of the petroleum products in demand, including gasoline and diesel, will remain in Kazakhstan, while the rest will be shipped to Russia. I believe these are reasonable terms,” Akkenzhenov said. The minister also said the refinery's owner is not subject to sanctions and that the Energy Ministry therefore sees no sanctions-related risks for the project.
“For us, this means additional investment in the country and the preservation of jobs. Condensate JSC previously owed around $100 million to the Development Bank of Kazakhstan, if I am not mistaken, and the new owner has nearly repaid the debt, which is positive for our economy.
As Energy Minister, however, my key priorities are the production of high-quality petroleum products, supplying the domestic market and, above all, preserving jobs so that our specialists can continue working at the plant and develop professionally,” he said. Russian oil supplies to the refinery could begin in the near future.
The facility is currently undergoing reconstruction and work to expand its production capacity. Earlier, it was reported that Kazakhstan had revised its oil production plan for 2026 from 98 million to 96 million tons due to the impact of attacks on the CPC.