Kazakhstan Could Stop Sending Its Oil to Europe

Kazakhstan is ready to change export routes for its oil when the European carbon tax will enter into force. Among the best substitutes for the EU’s market are South Asian countries and China, according to Zhumabay Karagayev, the vice-minister of energy in Kazakhstan.

Currently, a large part of all the oil produced in the country goes to Europe.

«We believe that when a new tax code will be adopted, it may harm our oil and gas industry. Therefore, we consider such alternatives as China and South Asian countries,» he said at a briefing in Nur-Sultan.

The European Commission has come up with an idea to bring carbon emissions to zero rates by 2050, which will require significant economic changes in the entire organization. As part of the initiative, the EU has suggested adopting new tariffs on the import of steel, iron (including pipes and rails), aluminum, cement, fertilizers, and electricity.

According to this plan, a so-called transit period will be implemented between 2023 and 2025. Every importer will be obliged to report to the EU about carbon emissions associated with imported goods and every payment for these emissions in any other country. However, companies will have to pay for carbon emissions starting from the year of 2026 only, when the whole mechanism will be fully approved.