Kazakhstan in Talks to Refine Russian Crude Oil Amid Fuel Shortages

July 31, 2026 The Pavlodar Oil Refinery in Kazakhstan. Primeminister.kz Kazakhstan’s energy ministry is in negotiations with the Russian government to refine Russian crude oil and ship a portion of the resulting petroleum products back to Russia, Reuters reported Thursday. Under the proposed arrangement, Kazakh facilities would process Russian oil to cover local market needs while returning a portion of the refined gasoline and diesel back to Russia. The energy ministry did not mention specific production volumes, delivery timelines or participating refineries, noting only that commercial traders would handle shipments under Kazakh law. For Kazakhstan, the workaround is intended to keep its own refineries running at full capacity while guaranteeing its own domestic supply first. “A top priority in the negotiations is fully meeting the needs of Kazakhstan’s domestic market,” the energy ministry was quoted as saying. The talks come as Russia extended a ban on gasoline and diesel exports through the end of next January as authorities in Moscow continue to try to stabilize the domestic fuel market following sweeping Ukrainian drone attacks on oil refineries and storage hubs. Kazakhstan’s Kondensat refinery has processed Russian crude since at least mid-2024 and exported gasoline to Russia for the first time earlier this month. Kazakhstan accounts for roughly 2% of global daily oil supply, according to Reuters. Read more about: Kazakhstan , Oil , Gasoline Sign up for our free weekly newsletter Our weekly newsletter contains a hand-picked selection of news, features, analysis and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview Subscribers agree to the Privacy Policy We sent a confirmation to your email. Please confirm your subscription. A Message from The Moscow Times: Dear readers, We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent." These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia. We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help. Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact. By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us. Once Monthly Annual Continue Not ready to support today? Remind me later. × Remind me next month Remind me Thank you! Your reminder is set. We will send you one reminder email a month from now. For details on the personal data we collect and how it is used, please see our Privacy Policy. Read more Kazakhstan to Reroute German Oil Exports Following Russian Pipeline Suspension Kazakhstan’s energy ministry said crude will now move through the Baltic Sea port of Ust-Luga and a joint Russian-Kazakh oil pipeline. 1 Min read Russia Bans Producers From Exporting Gasoline Until July 31 Officials said the move was aimed at stabilizing domestic fuel supplies amid rising global oil prices and ahead of the spring planting season. 2 Min read Naval Drones Halt Operations at Russian Oil Terminal The Caspian Pipeline Consortium said it would resume operations when the drone threat was lifted. 1 Min read Russia to Ban Gasoline Exports for 6 Months The Russian government previously imposed “temporary restrictions” on gasoline and diesel exports late last year to tackle surging prices. 1 Min read