Russia to start crude supplies to China across Kazakhstan from January

Russia’s crude supplies to China transited across Kazakhstan in line with a respective Russian-Kazakh agreement will make up 7 million tons a year, with the figure possibly to be brought up to 10 million tons, 1prime.ru reports, citing Russia’s Energy Minister Aleksandr Novak as saying.

“The agreement comes to force January 1, 2014. The agreement shall be valid for 10 years”, Mr. Novak said.

The supplies will be based on swap schemes.

Earlier Tengrinews.kz reported that Kazakhstan-based Pavlodar Oil Refinery will be receiving additional amounts of crude in exchange for Kazakhstan’s crude sent to China via the Kazakh-Chinese Atasu-Alashankow pipeline. According to a source close to Rosneft, it is "a more beneficial way for the company", given the fact that the company has undertaken to pay all the export duties.