Azernews.Az

Russian state-run pipeline operator Transneft will have 5.5 billion rubles (30.16 rubles = $1) losses if Russian oil is transported to China through Kazakhstan, Transneft's head Nikolai Tokarev told Russian newspaper Kommersant.

"The oil pipeline running through Kazakhstan to China has a capacity of 20 million tons and is filled by half. Kazakhstan's tariff (on oil pumping to China) is quite low. But if we pump 5-7 million tons through Kazakhstan to China, we will have to take these volumes from somewhere. It is impossible to take them from our refineries, so these volumes will be taken from export by other routes. Transneft will lose 5.5 billion rubles as a result. The state budget will lose $1.5 billion rubles revenue in such case," Tokarev said.

According to Tokarev, Russian oil producing company Rosneft earlier proposed to increase oil supplies to China and pump the additional volumes through Kazakhstan.

"Meanwhile, as far as I know no negotiations are underway on this issue at the moment," Tokarev said.

In September, 2012 Kazakhstan significantly reduced tariff for Russian oil transportation to China because it was unable to fill Atasu-Alashankou pipeline by own oil.