Russia asks Kazakhstan to be ready to supply 100,000 tonnes of petrol

Russia has asked Kazakhstan to be ready to supply 100,000 tonnes of petrol in case of a fuel shortage that could be exacerbated by Ukrainian drone attacks and refinery shutdowns.

Source: Reuters reports this with reference to industry sources

Details: The sources said that Moscow had asked Kazakhstan to create a reserve fund with 100,000 tonnes of petrol, which would be ready to supply fuel to Russia if necessary. An agreement on the use of reserves for Russia has already been signed.

On 1 March, Moscow imposed a six-month ban on petrol exports to prevent an acute fuel shortage. At the same time, it does not apply to the Moscow-led Eurasian Economic Union, which includes Kazakhstan, as well as to some countries, such as Mongolia, with which Russia has interstate fuel supply agreements. However, traders believe that the ban could be extended if the situation in Russia deteriorates.

Sources report that as of 5 April, Kazakhstan's stocks of AI-92 petrol stood at 307,700 tonnes and AI-95 petrol at 58,000 tonnes. Diesel reserves stood at 435,300 tonnes, and jet fuel at 101,000 tonnes.

Background:

• The Russian government banned gasoline exports from 16 March for six months and increased the standard for diesel fuel sales on the stock exchange to 16%. They want to take such measures to combat rising fuel prices.
• In September 2023, the Russian government reported that they were ready to take drastic measures at the fuel market due to a record increase in wholesale prices.
• Russia increased fuel imports from Belarus in March to overcome the risk of shortages in its domestic market, which arose due to repairs at Russian oil refineries after drone attacks.
• Russia cut its railway gasoline exports by half in March after imposing a fuel embargo. The growth of domestic demand and unplanned shutdowns of oil refineries have led to a tense situation in the domestic market.

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