Page 20 - FSUOGM Week 02 2023

FSUOGM NEWS IN BRIEF FSUOGM

China ups its imports of rare work at the legislative level for improving petroleum jelly, paraffin and used petroleum
products from $43.3 to $16.7 per tonne (a
the conditions of Russian contractors’
Artic blends ahead of EU oil participation in joint projects, including in 60.15% decrease). The duty on straight-run
gasoline was reduced from $23.8 to $9.1 per
the area of development of tight oil fields in
product ban in February Kazakhstan," TASS news agency quoted the tonne (a 60.18% decrease. The duty rates
on commercial gasoline, diesel, light and
Russian government as saying.
China has increased its imports of rare "Russian-Kazakh cooperation is medium distillates, benzene, toluol, xylol
Artic blends of Russian crude oil in the developing stably, being of comprehensive and lubricants were lowered from $12.9 to
lead up to an EU ban on Russian petroleum and mutually beneficial nature. It $5 (a 60.13% decrease).
products set to take effect on February 5, meets the spirit of strategic partnership In early 2022, Belarus’ oil sector
Bloomberg reports. between Russia and Kazakhstan based experienced a crisis when it suddenly lost
According to data from oil-flow tracking on firm traditions of friendship, good not only Western costumers but also vital
companies Vortexa and Kpler, Beijing began neighbourliness and mutual respect," Novak export routes to global markets for its oil
purchasing Arctic crude, specifically Arco, was quoted as saying. products due to Western sanctions. In
in November 2022. Deliveries of this and late November 2022, the Belarusian state
other types of crude, such as Varandey and company Gomeltransneft Druzhba asked
Novy Port, are scheduled for January and Moldova to complete audit of Transneft to increase the tariff on oil by 39%
February. starting from January 1, 2023. The official
The purchases are seen as a rerouting of historic debt to Gazprom by end said that Gomeltransneft Druzhba had
Russian supplies internationally, as well as asked for the tariff increase since it expected
a shift away from Middle Eastern imports of January the flow of oil through the pipeline to halve
for China. The move comes as China's in 2023.
daily crude and condensate imports hit the The first results of the audit carried out Belarusian President Alexander
second-highest level on record last month, by independent firm Wikborg Rein Lukashenko recently managed to
according to Kpler. Advokatfirma AS (Norway) on the historic negotiate favourable prices for oil from
Lead oil analyst with Vienna-based Kpler debt owed by Moldovagaz to Gazprom Russia to Belarus during 2023, as well as
Viktor Katona said, "Russia's Arctic grades are to be published at the end of January, reimbursement for Belarus’ oil refineries
were among the Europe-oriented streams according to Moldova’s deputy prime from Russia’s tax manoeuvre. This will help
that since December 5 have to find new minister and minister of infrastructure and Belarus’ oil sector to stay afloat so that it can
homes elsewhere, and in all of those cases, regional development, Andrei Spinu, as continue to provide vital foreign currency
it's pretty much an India and China split." quoted by Infotag.md. inflow to the country.
The increased imports of Arctic oil come Settling the historic debt is a condition Nevertheless, to stimulate oil products
after Western sanctions prompted Russia, for the continuation of the contract between exports, Belarus’ council of ministers has
once Europe's biggest supplier, to divert the two companies. The audit should have decided to slash export duties immensely,
its energy exports to Asian markets, with been completed by the spring of 2022, but most likely in an attempt to penetrate new
China becoming the top buyer of Russian the Moldovan authorities cited adverse markets. Whether or not this slash in export
oil. conditions including the war in Ukraine for duties will increase sales or help the sector
the delay. to expand its world market shares in oil
Gazprom estimates its claims at over trade remains to be seen.
Russia says Kazakhstan $700mn.
The debt is owed by Moldovagaz and not
interested in Russian firms’ by the Moldovan state, Spinu stressed. Rosneft keeps gas ambitions,
A source from the board of directors of
participation in Kazakh oil sector Moldovagaz, on condition of anonymity, said to bid for Power of Siberia 2
told Infotag that there are serious concerns
Russia’s government said in a statement that Gazprom will not recognise the results Russia’s largest crude oil producer state-
on January 10 issued following a meeting of the audit. controlled Rosneft is continuing with its
between Deputy Prime Minister Alexander The reason is that the audit company lobbying efforts to dent natural gas giant’s
Novak and Kazakhstan’s First Deputy Prime Wikborg Rein Advokatfirma previously Gazprom’s monopoly over pipeline gas
Minister Roman Sklyar that Kazakhstan is helped Naftogaz-Ukraine in its international exports, as Rosneft is now demanding to
interested in the participation of Russian arbitration dispute with Gazprom, which supply gas from its fields in Krasnoyarsk
firms in its energy sector and is trying to the Russian company lost. and Irkutsk regions to Gazprom's projected
improve conditions for Russian contractors Power of Siberia-2 gas export pipeline,
across multiple sectors, including oil according to Kommersant daily citing
projects. Belarus slashes export duties unnamed official sources.
Kazakhstan has been playing a balancing As followed by bne IntelliNews, most
act between enhancing cooperation and on oil and petroleum products recently Rosneft announced another boost
investor relations with the West while not to its gas reserves, but despite years of
completely falling out of favour with Russia. without the EAEU Customs area lobbying efforts the company has yet to
Importantly, Kazakhstan relies on an oil break Gazprom’s long-held monopoly over
pipeline passing through Russia to ship the Starting from January 1, Belarus has slashed pipeline exports.
majority of its crude oil that is exported export duties on oil and petroleum products The only means of exporting gas from
Western countries. exported outside of the Eurasian Economic Eastern Siberia is the Power of Siberia
"The First Deputy Prime Minister Union’s customs area by 60%. This was pipeline that runs to China, and Gazprom
announced Kazakhstan’s interest in the reported on the country’s National Legal has exclusive access to this. Under current
participation of Russian companies in the Internet Portal. Russian law, then, Rosneft’s only choice
construction of energy facilities on the Belarus has lowered the export duty is first to sell the gas to Gazprom at a
republic’s territory and informed about on crude oil, fuel oil, petroleum bitumen, discounted price. It would also have to

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