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Tass 21 Nov 2017

Russia and Uzbekistan plan to discuss increase of Russian oil supplies via Kazakhstan at a meeting in Tashkent in late December, a source familiar with progress in talks told TASS on Tuesday.

A meeting in the Russian Ministry of Energy was held on this issue the day before. "The decision was made to hold the meeting in Tashkent in twentieth days, provisionally on December 25," the source said.

Uzbekistan wants to receive 1 mln tonnes from Russia over the longer term and increase deliveries to 3 mln tonnes of oil after 2020, the source said.

"They want to receive 3 mln tonnes from Russia in the longer run, when they will construct a refinery after the year of 2020 and 2 mln more from Kazakhstan," the source noted.

Free throughput capacity in direction of Uzbekistan is just 500,000 tonnes now, he said. The capacity of Shagyr oil loading rack involved in deliveries is 700,000 tonnes. Construction of a pipeline and two pump stations valued at 5 bln rubles ($84.1 mln) rubles each will be needed to increase supplies.

Negotiations are currently at the initial stage, Deputy Energy Minister of Russia Anatoly Yanovsky told TASS.

"They decided to build a refinery in Uzbekistan and are viewing options now," the official said.

Extra oil supplies totaling 5 mln tonnes can be in question, Yanovsky said. They may be supplied either from Russia or from Kazakhstan, he added.

Deliveries of Russian oil to Uzbekistan over the main pipeline system of Kazakhstan started on November 16 of this year.