Senate Approves Law on Amendments to Oil Transit Agreement for Russian Oil Transport to China via Kazakhstan

The Senate has greenlit a pivotal law concerning the transportation of Russian oil through Kazakhstan to China, as per an intergovernmental agreement.

Suyindik Aldashev, Chairman of the Senate’s Economic Policy, Innovative Development, and Entrepreneurship Committee, presented the document to his colleagues.

“The protocol aims to extend the validity period of the 2013 agreement between Kazakhstan and Russia on oil transportation to China until 2034. It also involves modifications related to oil transit volumes and tariff adjustments,” explained the deputy.

The changes are outlined as follows:

  • Annual oil transit volume will increase from 7 million tons to 10 million tons.
  • The tariff for oil transportation on the Kazakh section of the Tuimazy – Omsk – Novosibirsk pipeline is set at $2.1.
  • The tariff for oil transit through Kazakhstan is $15 per ton.
  • The agreement’s validity will extend until January 1, 2034.
  • Kazakhstan will apply a zero rate of value-added tax (VAT) on oil transportation services, treating them as
  • international transportation for VAT refund purposes.

Aldashev emphasized that these changes were made in line with Kazakhstan’s tax legislation, allowing for the refund of VAT on services provided along the oil transportation route.

Following deliberations, Senate deputies voted to approve the law, marking a significant step forward in regulating oil transit arrangements between Kazakhstan and Russia.



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