Kazakhstan to extend its oil export ban until early 2027

Kazakhstan’s Ministry of Energy will extend the ban on exporting oil products (gasoline and diesel fuel) outside the Eurasian Economic Union (EEU) until Jan. 1, 2027. This decision, drafted as an order by the ministry, has been coordinated with other public agencies such as the ministries of finance, trade and integration, and national economy.

The draft decision, posted for public discussion, states:

«To impose a ban until Dec. 31, 2026, on the export from the territory of the Republic of Kazakhstan outside the customs territory of the Eurasian Economic Union of certain types of petroleum products listed in the annex to this order.»

Under the current order, the ban on the export of oil products from Kazakhstan outside the EEU is set to expire on Dec. 31, 2024.

The extension follows a directive issued in July by First Deputy Prime Minister Roman Sklyar and aligns with a decision by the council of heads of authorized bodies of EEU member states in the energy sector, which supported Kazakhstan’s proposal to delay the launch of the EEU’s common markets for gas, oil and oil products until Jan. 1, 2027.

Previously, it had been expected that these common markets within the EEU would open on Jan. 1, 2025. However, this presented the risk of sharp price increases in Kazakhstan due to significant differences in fuel costs between Kazakhstan and other EEU member states. Kazakhstan’s authorities have been cautious about liberalizing retail prices for fuels, lubricants and liquefied gas, a popular fuel in the country, which has experienced slower price growth than AI-92 gasoline.

The Ministry of Energy reports an unusual rise in the domestic consumption of AI-92 gasoline and diesel fuel. According to the Financial Monitoring Agency, monthly volumes of «gray» exports and cross-border flows of fuels and lubricants — disguised as other similar goods — reach 10,000 tons. This increase is largely driven by price discrepancies, as Kazakhstan’s fuel prices are 17% to 107% lower than those in neighboring countries.

Additionally, Kazakhstan, under its oil and oil product supply agreement with Russia, must import Russian oil products on duty-free terms and comply with Russia’s requirement to prohibit the re-export of these fuels outside the EEU. As a result, the extension of the export ban aims to strengthen oversight of petroleum product exports, particularly those leaving under the guise of «cover goods,» the ministry explained.

According to the ministry, maintaining the ban on exporting oil products outside the EEU will help fill unused capacity at domestic refineries, thereby reducing gasoline shortages within the country. It will also allow Kazakhstan to meet duty-free supply conditions and prevent the re-export of imported petroleum products before creating common EAEU markets for oil and oil products.

In early October, reports indicated that Kazakhstan would extend its ban on the export of oil products by road for an additional six months and implement a new ban on their export by rail.