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Kazakhstan calls for canceling state regulation of oil transit tariffs

Transportation accounts for 3% to 5% of the price of oil

ASTANA, October 1 (Itar-Tass) - Kazakh Prime Minister Serik Akhmetov ordered his deputy Kairat Kelimbetov to bring forward a proposal for review by the Eurasian Economic Commission (EEC) on cancelling state regulation of tariffs on oil transit and oil transportation for exports.

"Kazakhstan's position in EEC on this issue should be clearly defined, so I'm instructing Deputy Prime Minister Kelimbetov together with our experts in EEK to consider and bring forward this decision for review by the Commission," Akhmetov told a cabinet meeting on Tuesday.

The issue of cancelling state regulation of tariffs on the transportation of oil intended for exports and its transit via Kazakhstan was raised by chief of the Samruk Kazyna National Welfare Fund Umirzak Shukeyev.

"The exports and transit tariffs are a subject of talks between those who provide services and those who consume them, i.e. users of mineral resources. Transportation accounts for 3% to 5% of the price of oil, which is an insignificant amount in actual fact," Shukeyev said adding that "tariffs on exports and transit of natural gas are not regulated in Kazakhstan."

Head of the Agency for Regulation of Natural Monopolies Murat Ospanov supported him, saying "we are for cancelling the regulation of exports and transit, as /is the case/ with gas."

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