Kazakhstan signs off on Russian oil transports to China

Kazakhstan

ASTANA, July 2, 2014 – The intergovernmental agreement to transport Russian oil to China via Kazakhstan’s main pipelines was ratified last week. According to the agreement, approximately 7 million tonnes of oil will be transited through Kazakh territory to China’s northwestern city of Alashankou. Oil and Gas Minister Uzakbay Karabalin confirmed Russia would pay Kazakhstan $9.8 per tonne for transit fees and royalties.

The latest deal was signed months before the Eurasian Economic Union officially goes into effect, and illustrates the growing financial ties between the three member states: Belarus, Kazakhstan and Russia.

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