Rosneft wants to control Russian oil export to Kazakhstan
President of Rosneft Igor Sechin has applied to Prime-Minister of Russia Dmitriy Medvedev asking him to vest the company with the functions of the sole coordinator of all Russian oil supplies to Kazakhstan, including the supplies to China that transit Kazakhstan, Izvestia writes citing its source in the government. "Currently four companies have the schedule of supplies to Kazakhstan. They do it independently, without Rosneft. And Rosneft says: "Let me be your general contractor and the pricing will be better! I will sign the contract with Kazakhstan and will secure the orders for you: 100 thousand tons to Lukoil, 200 thousand tons to SurgutNeftegas and 50 thousand tons to Gazprom Neft"," the manager of Transneft explained. In his letter to Medvedev Sechin said that Rosneft's initiative protected Russia's interests. According to him, appointment of the sole coordinator would solve the issue of duty-free re-export of Russian oil to China via Kazakhstan. As Kazakhstan is part of the Customs Union, the customs duty is not applied when goods cross Russian-Kazakhstan border. The existing scheme of the duty waiver is legal within the CU (geographical swap), but cuts the profits of the Russian budget in amount of up to 1 billion per year. Rosneft is ready to undertake the obligation of signing direct contracts with Kazakhstan oil refineries, thus decreasing the volume of re-export. In the letter Sechin noted that the initiative was already supported by the Federal Customs Service and "approved on the operational level" with Transneft and Gazprom Neft. Currently the Ministry of Energy is the only one not accepting the suggestion. In this relation head of Rosneft asked for "the Ministry's additional review of this problem". Around 4 percent of the total volume of oil export from Russia falls on Kazakhstan. 0.6 million tons of oil was exported to Kazakhstan in February 2013.