Russia to cut down oil and petroleum products supply to Kazakhstan in 2012

Russia has decided to decrease oil supplies to Kazakhstan and limit petroleum products supplies in 2012, Kazakhstan’s Oil and gas Minister Sauat Mynbayev told November 28, Novosti Kazakhstan reports. “The situation is quite complicated for 2012 … Instead of the current 7 million tons of oil a year, Russia will only supply 6 million tons in 2012”, Mynbayev said when speaking at the Government’s sitting November 28. “Moreover, Russia will be limiting supplies of petroleum products, including petrol and aviation fuel”, the Minister said. “If like this year we are unable to bring in the required volume of petroleum products and if local capacities are not enough … it would be more reasonable to take Kazakhstan-produced oil out of the country, get it processed and brought in back”, Mynbayev said. However, according to him, with this scheme in place “there are some tax-related nuances”. “I want this issue resolved within reasonably short time”, he said. In his turn, the country’s PM Karim Massimov suggested holding a Government sitting in December focused on this issue.