26 September 2018

Rosneft agrees to ship oil to China via Kazahkstan, report says

Rosneft said it has agreed to ship oil to China via neighboring Kazakhstan, enabling it honor its supply commitments to Beijing, Reuters reported Monday. The preliminary agreement was signed by executives of Rosneft, Kazakh state oil firm KazMunaiGas and oil pipeline monopoly KazTransOil. No details were disclosed but sources familiar with the agreement were quoted as saying Rosneft will supply seven million metric tons a year (140,000 barrels of oil per day) to China via Kazakhstan. Rosneft will pay export duty to the Russian state, the report said. Russia and Kazakhstan are part of a Moscow-led duty-free customs union and the issue of how export duty would be levied was one key obstacle to the agreement. The levy is US$395.90 per metric ton, the report said.

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