Russia seeks Kazakh fuel reserves amid looming shortages, drone strikes
Reuters, referencing three industry insiders, reports that Moscow has approached the Kazakh authorities to establish a fuel reserve to mitigate potential shortages in Russia. The request involves approximately 110,231 tons of fuel.
10:02 AM EDT, April 8, 2024
In light of potential gasoline shortages, the Russian government has sought assistance from Kazakhstan. This situation arises from Ukrainian drone attacks on refineries, which have significantly disrupted crude oil production. Furthermore, the country is contending with severe flooding.
According to Reuters, which sourced information from three industry experts, Moscow has asked Kazakhstan to help create a gasoline reserve for Russia in anticipation of possible shortages.
An agency source revealed that an agreement for approximately 110,231 tons had been formalized, aligning with a provisional balance. - "We've signed an agreement; everything has been arranged," the source informed Reuters.
Challenges in Russia's fuel sector
Industry observers doubt Kazakhstan's ability to fulfill the Kremlin's request, given its reserves of roughly 338,633 tons of Pb-92 and 64,736 tons of Pb-95 gasoline.
Earlier, the Kremlin sought similar assistance from Belarus. Pavel Zavalny, head of the State Duma Energy Committee, noted that "an agreement was reached for monthly purchases ranging between 110,231 and 165,346 tons."
Insiders indicate a looming fuel shortage in Russia's refineries. - By May, Russia could face a significant domestic gasoline deficit, one source disclosed to Reuters.
March figures from Rosstat show that Russia experienced a 10.1 percent drop in gasoline production and nearly a 4 percent decrease in diesel oil production. These declines resulted from drone attacks halting operations at three refineries.
Flooding in the Far East has also caused shutdowns at two refineries, raising concerns about potential disasters if operations were to continue.
