Russian and Kazakhstan sign deal on oil transit to China

Russian and Kazakh Presidents Vladimir Putin and Nursultan Nazarbayev have concluded negotiations, resulting in signing of an inter-governmental deal on transit of Russian oil to China through Kazakhstan, News Azerbaijan.

The sides have also signed a protocol on amendments to the oil transit agreement of 2002 and a protocol on amendments to the inter-governmental agreement on trade-economic cooperation in shipments of oil and petroleum to Kazakhstan (signed in 2010).

Rosneft President Igor Sechin said that his company will pump 7 million tons of oil a year in 2014. Russia will earn $2.3-2.5 billion a year by exporting oil to China through Kazakhstan.

Russia and Kazakhstan will start oil swaps on January 1, 2014. The deal on customs-free shipments of oil between Russia and Kazakhstan expires on January 1, 2014. The sides signed a preliminary agreement on oil transportation through Kazakhstan and transit guarantees in November.