Kazakhstan talks with Russia to process Russian crude amid fuel shortages in Russia

The Ministry of Energy announced on Thursday that Kazakhstan and Russia are in talks to process Russian oil at its refineries. Products will be sold domestically, then sent back to Russia.

The?ministry stated in a press release that "negotiations" are taking place regarding the processing and sale of oil of Russian origin, as well as the exportation of a portion of the product to Russia.

The move was said to be made 'to ensure stable capacity utilization?at Kazakh refining plants?and local supplies.

The Ministry did not specify volumes, processing terms or specific refineries that were involved in the discussions. The ministry said that the market participants will determine shipment destinations independently.

Russia is experiencing fuel shortages across the country due to a recent wave of Ukrainian drone attacks on oil refineries.

The Ukraine has'struck' the largest refinery in Russia, located deep within Siberia and close to the Kazakh border.

Kazakhstan is responsible for around 2% of the global oil supply. Recently, it has begun supplying refined petroleum products to Russia. Reporting by?by in Moscow and Tamara Vaal from Astana; writing by Felix Light, editing by David Goodman, Jason Neely

(source: Reuters)