Kazakhstan Freezes Transit Cost of Russian Oil To China

KazTransOil JSC, Kazakhstan’s national oil pipeline operator, on January 26th said it will freeze the cost of transiting Russian oil to China until 2034.

Until December 31st 2033 the cost of transporting Russian oil to China through the territory of Kazakhstan will amount to $15 per ton (excluding VAT), the company said.  

KazTransOil also said it has extended until December 31st 2033 its contract with Russia’s Rosneft oil company for the transportation of Russian oil through Kazakhstan to China.

From 2014-2023, KazTransOil transported 91 million tons of Russian oil to China along the Atasu–Alashankou oil pipeline, which is part of the Kazakhstan-China main oil pipeline system and belongs to Kazakhstan-China Pipeline LLP, a joint venture of KazTransOil JSC (50%) and China National Oil and Gas Exploration and Development Company Ltd (50%). The design capacity of the Atasu–Alashankou pipeline is 20 million tons of oil per year.

Russia has been seeking to increase its oil exports to China after western sanctions were imposed on its exports over its invasion of Ukraine. 

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Times of Central Asia

Jonathan Campion has worked in the Eurasia region since 2007. After leaving Exeter University with a degree in Russian Language, he worked as a writer, editor, analyst and translator for international law firms, market research firms and business forums serving the CIS region's major industries, from banking and finance, to metals and pharmaceuticals, and wine and spirits. With a passion for Central Asia, he has covered the region in esteemed publications such as the Lonely Planet, Open Central Asia magazine, and National Geographic Traveler.
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He has translated books and poems from the region into English, and will be publishing his first book, about a sports team that saved lives at the start of Russia-Ukraine war, in April of 2024.

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