Russia Turns to Kazakhstan for Gasoline Amid Shortage Concerns

In response to potential shortages exacerbated by Ukrainian drone attacks and refinery outages, Russia has reportedly sought assistance from Kazakhstan, requesting 100,000 tons of gasoline, according to three industry sources speaking to Reuters.

Although one source claimed that a deal on utilising reserves for Russia had already been agreed upon, Shyngys Ilyasov, an advisor to Kazakhstan’s energy minister, stated that the energy ministry has not yet received such a request from its Russian counterpart. The Russian energy ministry has not provided any comment on the matter.

Belarus, Russia’s neighbouring country, has already agreed to assist with gasoline supply.

Drone attacks have disrupted approximately 14% of Russia’s primary oil refining capacity as of the end of March.

Despite this, Russian authorities have maintained that the situation in domestic fuel markets remains stable, with sufficient stockpiles.

Typically a net exporter of fuel, Russia has been compelled to import due to the refinery disruptions.

To address potential shortages, Moscow has approached Kazakhstan to establish an emergency reserve of 100,000 metric tons of gasoline for supply to Russia.

Russia implemented a gasoline export ban for six months starting from March 1st to mitigate acute fuel shortages.

However, this ban does not apply to members of the Moscow-led Eurasian Economic Union, which includes Kazakhstan, nor to countries like Mongolia, with which Russia has inter-governmental fuel supply agreements.

Traders have indicated that the ban could be expanded if the situation deteriorates further.

Recently, the Orsk oil refinery in the Urals ceased production due to extensive floods, impacting both Russia and Kazakhstan.

Kazakhstan, being the largest land-locked country globally, has also imposed restrictions on fuel exports until the end of the year, except for humanitarian purposes.

As of April 5th, Kazakhstan’s reserves of Ai-92 gasoline amounted to 307,700 tons, Ai-95 gasoline stockpiles stood at 58,000 tons, diesel reserves were 435,300 tons, and jet fuel inventories totalled 101,000 tons, according to the sources cited.