BAKU, Azerbaijan, January 20
By Nargiz Sadilkhova - Trend:
The impact of large-scale protests in Kazakhstan will play out over many months and years to come, Ashley Sherman, principal analyst on Wood Mackenzie’s Russia and Caspian upstream team said, Trend reports citing the WoodMac.
Sherman noted that early 2022 has brought the most traumatic events in Kazakhstan’s 30 years of modern independence.
“Widespread protests and civil unrest led to unprecedented scenes of violence on the country’s streets. Especially in Almaty, the largest city. More than 225 lives have been lost,” he said.
What began as peaceful demonstrations against a sharp increase in the price of LPG fuel in resource-rich western regions spiraled into wider economic and political demonstrations. Before suddenly turning violent. The security situation has now stabilized, with the help of military support from the regional Russia-headquartered Collective Security Treaty Organisation (CSTO). These troops withdrew by late January.
“For the global and regional energy sector, Kazakhstan’s stability matters. It produces about 2 million b/d of oil and condensate (2 percent of global output) and is the second-largest non-OPEC participant in ongoing production cuts. It remains a top-tier location for upstream volume and value among the Majors. Around 12 percent of China’s gas supply is piped across the country, primarily transit volumes from Turkmenistan. To say nothing of a world-leading uranium industry that covers almost 40 percent of international demand,” Sherman said.
In his words, what’s clear is that the impact of recent events will play out over many months and years to come.
“Not least the long list of fundamental political questions that now hang in the air,” Sherman added.
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