Kazakhstan says it is in talks with Moscow to process Russian oil at Kazakh refineries

Kazakhstan said on Thursday, 30 July 2026, that it is in talks with Moscow to process Russian oil at Kazakh refineries, with part of the resulting fuel sold on Kazakhstan's domestic market and part sent back across the border to Russia. No volumes, commercial terms or refineries have been named, and Kazakhstan's Energy Ministry said market participants would decide where the products go.

Ukraine has spent months attacking Russian refineries, storage sites, export terminals and other oil infrastructure. The latest round included the Omsk refinery, Russia's largest, located deep in Siberia near the Kazakh border. The damage has created fuel scarcity in several Russian regions, and on Thursday the Russian government extended its restrictions on gasoline and diesel exports through 31 January 2027.

Kazakhstan had already begun supplying some refined products to Russia, and processing Russian crude would widen that workaround, although its Energy Ministry has not said how much spare capacity it holds. No deal has been concluded. The point is that Russia is not short of crude oil, it is short of working refineries. The arrangement would do little to loosen the global diesel market, because fuel kept in Kazakhstan or shipped back to Russia will not reach other buyers, in a market already tight after refinery outages in Russia and West Asia.