Belarus and Kazakhstan are drafting an intergovernmental agreement on trade and economic cooperation regulating the supplies of oil and oil products to Belarus, BelTA learnt from Ambassador Extraordinary and Plenipotentiary of Belarus to Kazakhstan Valery Brylev.
The draft agreement is to be discussed at the forthcoming session of the Belarus-Kazakhstan intergovernmental commission on trade and economic cooperation in Taldykorgan, Kazakhstan, in September 2012.
"The document is rather complicated, because it should be countersigned by Russia as well; after all, oil will be transported using Russian pipelines," the diplomat said. The project will help balance out the trade between Belarus and Kazakhstan.
The imports from Kazakhstan started shrinking in 2011 after the termination of oil products supplies for secondary refinement at Belarusian oil refineries in May 2011. In 2011, their imports were estimated at 54,700 tones ($34.5 million), while in 2010 the figure stood at over 650,000 tones ($314.5 million). Those were supplies of Kazakhstan-made gas oil and fuel oil.
Oil processing depth stands at about 50% in Kazakhstan, while in Belarus it approaches 90%. "Kazakhstan is seeking to increase the processing depth, they are running projects to upgrade oil refineries in a bid to raise the processing depth and produce new types of oil products. Everyone understands that it is more profitable than producing crude oil. Therefore, Kazakhstan seeks to balance out its trade with Belarus. This can be done using oil supplies. Therefore, we are set to develop the intergovernmental agreement on trade and economic cooperation that would regulate the supplies of oil and oil products to Belarus. This energy project is underway now. We are going to discuss it at the upcoming session of the intergovernmental commission in Taldykorgan," the diplomat said.
Valery Brylev noted that in 2012 Belarus started exporting a small amount of its oil products to Kazakhstan, including gasoline, oils, and paraffin oil. Belarus provides transit to Kazakhstan oil bound for Europe. In 2011 it made up 2.2 million tonnes, down by almost 70% compared to 2010. The reduction in oil transit is attributed to a lower export of Belarusian services to Kazakhstan, the diplomat noted.
The ambassador informed that the overall commodity exports to Kazakhstan increased considerably. In January-May 2012 the bilateral trade was estimated at $387 million, up by 21% over the same period a year before. Belarus' exports to Kazakhstan exceeded $335 million, up 1.4 times. Belarus' imports from Kazakhstan shrank by a third (30.3%) down to $52.4 million.
Belarus' exports to Kazakhstan included over 500 commodities in 2011. The major exports were vehicles, including tractors, truck tractors, and trucks, which total supplies were estimated at $116.4 million, up 1.9 times over the previous year. These products contributed to the overall increase in Belarus' exports, Valery Brylev said. Belarus-made machines, instruments and equipment, including harvesters, also sold well in Kazakhstan. Belarus expanded the supplies of elevators and refrigerators, dairy and meat products, cables, road and construction machines, lighting equipment.
In 2011 Belarus started exporting over 100 new commodities to Kazakhstan, first of all, freight cars which export was estimated at $2.4 million. Belarus started exporting vegetables and newsprint. All in all, the bilateral trade made up almost $800 million in 2011; if services are included the figure exceeded $1 billion.