Senators ratify Russia – Kazakhstan Protocol on Oil Supplies Compensation

Through counter oil shipments from Kazakhstan to Russia, the Protocol provides for compensation of the Russian federal budget shortfalls resulting from duty-free shipments of petroleum products to cover Kazakhstan’s domestic demands.

The Protocol includes the procedure of counter shipping of oil to Russia in exchange to petroleum products imported from the Russian Federation by Kazakhstan. Counter deliveries are calculated on the basis of quarterly reconciliation statements and corrected with final statement signed at the end of year. The procedure also includes the pattern to calculate the price of supplied oil.