Russia in talks with Kazakhstan over petrol after refinery disruptions

Russia in talks with Kazakhstan over petrol after refinery disruptions
Cars queue for fuel at a gas station in Vladivostok, 22 August 2025
Reuters

Russia is in talks with Kazakhstan over possible petrol imports after refinery disruptions tightened domestic fuel supplies, four industry sources told Reuters.

One of the sources said Moscow is seeking around 50,000 tonnes of AI-92 petrol, describing the talks as ongoing, but said the chances of reaching an agreement remained limited.

Russia’s Energy Ministry did not immediately respond to a Reuters request for comment, while Kazakhstan’s Energy Minister Yerlan Akkenzhenov said Astana had not received an official request from Moscow.

The negotiations come as Russia’s refining sector faces mounting disruption. Several major refineries in central Russia suspended operations following what Russian authorities said were Ukrainian drone attacks, cutting petrol production by about 25% by the second half of June compared with the same period last year, according to industry estimates seen by Reuters.

'Temporary' disruptions to fuel deliveries

Russia's Energy Ministry acknowledged earlier this month that fuel deliveries had been disrupted in southern regions, but described the problems as temporary. By 23 June, however, industry sources said shortages had spread to dozens of regions, including Moscow, St. Petersburg and Russian-annexed territories.

To ease pressure on the domestic market, the government has allowed refineries to produce petrol and diesel with lower quality specifications and is planning petrol imports by sea this month.

The decline in refining has also been reflected in market data. Bloomberg estimates that at least eight of Russia’s ten largest refineries were hit in May and another six in June, pushing crude processing to its lowest level in 16 years. Energy Intelligence said processing fell below four million barrels a day during the first week of June, the lowest level since 2005, warning that continued attacks could lead to the most serious fuel crisis in modern Russia.

One proposal being discussed would see Russian crude processed at a Kazakh refinery before it is shipped back to Russia.

Kazakhstan's surplus of petrol

Kazakhstan currently has a surplus of petrol, although scheduled maintenance at the Atyrau refinery from 26 June to 20 July is expected to reduce available volumes. Industry sources say the Kondensat refinery is the most likely supplier. The plant processes gas condensate distillate from Russia’s TANECO refinery and is the only refinery in Kazakhstan allowed to sell part of its production freely under government quotas.

Official data show Kondensat exported 15,207 tonnes of AI-92 and AI-95 petrol to Georgia in May. However, TANECO suspended crude processing on 12 June following a drone attack, limiting feedstock supplies to the Kazakh refinery.

Kazakhstan’s refineries produced 2.521 million tonnes of petrol, 2.517 million tonnes of diesel fuel and 339,000 tonnes of jet fuel during the first five months of 2026.

Reciprocity in fuel supplies?

The discussions may also involve reciprocal supplies. Kazakhstan is facing a shortage of jet fuel because of rising seasonal demand, maintenance at the Atyrau refinery and lower imports. At the same time, Russia has sharply reduced jet fuel exports, including to Kazakhstan, making an exchange of petrol for aviation fuel a possible option, industry sources said.

The fuel shortages were discussed by Russia’s leadership on 23 June. President Vladimir Putin called for a coordinated response to what the Kremlin described as drone attacks and said the situation would not affect Russia’s military operations. Deputy Prime Minister Alexander Novak announced a package of measures, including a ban on petrol and jet fuel exports, while the government is also considering restrictions on diesel exports.

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