Kazakhstan diversifies oil supply routes bypassing Russia

The President of Kazakhstan, Kassym-Jomart Tokayev, ordered to diversify the oil supply prioritizing the Trans-Caspian transport route — a route to European countries that bypasses Russia. Earlier, the Russian court suspended the work of the Caspian Pipeline Consortium's marine terminal, the main export route for oil from Kazakhstan, says the press service of the President of Kazakhstan.

After the Russian court decision, Tokayev convened a meeting on the development of Kazakhstan's transport and transit potential, ordering the national oil company KazMunayGas to work on the diversification of oil supply, in particular through the Trans-Caspian route. This international transport corridor runs through China, Kazakhstan, the Caspian Sea, Azerbaijan, Georgia, and further to Turkey and European countries.

Tokayev said that Kazakhstan needs to create alternative railway routes and strengthen its railway fleet, as well as transform Kazakhstan Railways into a national transport and logistics company. The President also ordered the transformation of Kazakhstan's ports to turn them into "one of the leading hubs of the Caspian Sea."

"Kazakhstan has never been a maritime country and therefore has not fully used the possibilities of sea transportation. Now is a different time," Tokayev said.

Background

A Russian court has suspended the work of the Caspian Pipeline Consortium's marine terminal for 30 days which is the main export route for oil from Kazakhstan and accounts for more than 80% of the volumes pumped through the pipeline.

The move was made after the President of Kazakhstan, Kassym-Jomart Tokayev, offered to help Europe overcome the energy crisis. Russian court said that the official reason for the suspension was "found violations."

In conversation with the President of the European Council, Charles Michel, Tokayev expressed concern over threats to energy security in the world and emphasized "Kazakhstan's readiness to use its hydrocarbon potential to stabilize the situation in the world and European markets."

On June 3, the EU Council approved the sixth package of sanctions against Russia, prohibiting the purchase, import, or transfer of crude oil and certain petroleum products from Russia into the EU. The phasing out of Russian oil will take from 6 months for crude oil to 8 months for other refined petroleum products.