Eurasian Integration Yearbook 2012

2011: Data and ReviewsKazakhstan, Russia agree to abolish oil dutiesJuly 18, 2011Russian President Dmitry Medvedev has signed a federal law “On Ratificationof the Agreement between the Government of the Russian Federation and theGovernment of the Republic of Kazakhstan on Trade and Economic Cooperationin Oil and Oil Product Supplies to the Republic of Kazakhstan”.The document bans the application of export duties and other similar duties,taxes and levies to oil and oil products traded between the two countries.According to the new law, the relevant authorities of Russia and Kazakhstanwill negotiate to balance output, consumption, supply, imports and exportsof oil and oil products in both states. The countries will also coordinatevolumes of oil delivered by Russia and Kazakhstan to Belarus, and deliveriesof crude oil and derivative products between all three states (indicativebalance).Supplies of fuels to Kyrgyzstan to be resumedJuly 20, 2011RBK, Kursiv.kzKyrgyz Prime Minister Almazbek Atambayev visited Moscow to discuss theresumption of Russian oil product supplies to Kyrgyzstan. Omsk Refinery, themain supplier of Russian fuel to Kyrgyzstan, halted deliveries of high-octaneAI-92 and AI-95 gasoline to Kyrgyzstan in early July, forcing many petrolstations to close, which led to panic buying, petrol queues and price hikes of 20-25%.Experts believe that the petrol crisis has political roots. Should the fuel andlubricant crisis be successfully resolved before the elections on October 30,it will considerably improve Atambayev’s chances of winning another term inoffice.Note:Gazprom Neft Asia, which controls around 90% of gas stations in Kyrgyzstan, made an official statement onJuly 19, saying that the shortages of high-octane gasoline was a result of Russia’s new regulations that tightenedquality requirements on goods for Russia’s domestic consumption. As a result, Omsk Refinery, which producesEuro-3 standard high-octane petrol, appeared to be overloaded with domestic product while deliveries to othercountries suffered. Gazprom Neft Asia secured supplies of high-octane petrol from other Russian refineries,including the Kuibyshev, Salavat and Astrakhan Refineries. The refineries dispatched the petrol in time for afirst shipment on July 21.Kommersant-Online270 EDB Eurasian Integration Yearbook 2012