Mazhilis approves bill on cooperation in supplying petroleum products to Armenia

04.05.2022, 17:24

Kazakhstan and Armenia will expand the trade and economic ties in the area of oil product deliveries to Armenia. The Lower House of the Parliament passed the bill, sending the document to the Senate for review. Trade between EAEU countries was previously conducted without payment of export customs charges or customs supervision, according to Minister of Energy Bolat Akchulakov. The agreement also establishes a practical regime for petroleum products trade, as well as procedures to oversee export of petroleum products from Kazakhstan to Armenia.

“The agreement will also regulate the export of oil products from Kazakhstan and protect the internal market against uncontrolled oil product flows into the nations of the Eurasian Economic Union. In addition, the agreement states that, if necessary, Kazakhstan may unilaterally stop or limit duty-free petroleum product supplies to Armenia if the export volumes exceed those approved by indicative balances, in cases of force majeure, as well as to ensure national security and protect the domestic market, or if Armenia violates its obligations by exporting Kazakh oil products from its territory to other countries, including the EAEU countries. Thus, there are no risks for the domestic market,” the minister noted.

According to Bolat Akchulakov, the supply of Kazakhstan’s internal market with domestic oil products is guaranteed by the law on government regulation of the production and circulation of different types of oil products. The plan for the provision of oil to the local market is approved every month by the relevant department. Only if there is a surplus, oil products could be delivered to Armenia, said the minister.

 

Translation and editing by Galiya Khassenkhanova