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Kazakhstan to simplify oil exports

23 April 2014 13:14 (UTC+04:00)
Kazakhstan to simplify oil exports

By Aynur Jafarova

Kazakhstan intends to simplify oil exports through the territory of the Eurasian Economic Union (EEU) member countries, Kazakh vice Minister of Oil and Gas said.

"The establishment of the EEU will provide a significant advantage for Kazakh oil workers," Magzum Mirzagaliyev said.

"Under the conditions of the EEU, the transportation mechanisms of the Kazakh oil for export such as customs clearance and organizational issues will be simplified," he said.

Mirzagaliyev went on to note that large volumes of Kazakh oil [about 60 percent] are exported through Russia's territory and partially through Belarus.

"Given this factor, we see significant advantages in ensuring high profitability for Kazakhstan by means of oil exports," Mirzagaliyev said.

One of the problems in Kazakhstan's energy industry at the moment is the possible imposition of sanctions against Russia by Western countries due to Russia's invasion and subsequent annexation of Ukraine's Crimea region.

More than 60 percent of Kazakh oil exports were transported via pipelines through the Russian territory in 2013. If sanctions are imposed, Kazakhstan will have to redirect its oil exports via another route; therefore, the country's oil export will decline.

A possible way to transport the Kazakh oil is the Black Sea - the Batumi port- and the Caspian Sea.

The history of the EEU began in November 2011 with the signing of a series of documents, particularly a declaration on the establishment of the Eurasian Economic Integration and an agreement on the establishment of the Eurasian Economic Commission and its regulations.

The heads of Russia, Belarus, and Kazakhstan are expected to sign an agreement on the establishment of the EEU in May, 2014, and the organization will start its activity on January 1, 2015.

The main conditions to join the organization are having unified tariffs and technical regulations, harmonizing labor and immigration legislation, and establishing a unified banking system.

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