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    Economics

    “Trilateral gas union with Russia and Kazakhstan is useful in case of transit to China”- expert

    “Trilateral gas union with Russia and Kazakhstan is useful in case of transit to China”- expert

    The Russian company "Gazprom" intends to distil gas and transport it to Uzbekistan via Kazakh pipelines. The countries agreed to a two-year deal. Fuel will be distributed beginning October 1. Daryo's correspondent in Astana decided to investigate the advantages and disadvantages of acting as an intermediary between Russia and Uzbekistan.

    Gazprom is understood to have struck a contract with the Kazakh business Qazaqgaz. The agreement requires gas transportation services to be provided.  Shaimerden Chikanaev, an oil and gas sector specialist claims Russia has chosen to enhance gas supply to Central Asian countries.

    "President Putin even proposed on November 28, 2022, the idea of creating a "tripartite gas union" of Russia, Kazakhstan, and Uzbekistan, with the ultimate goal, apparently, of allowing Kazakhstan and Uzbekistan to export all of their natural gas to China at a higher price. And to purchase gas at a reduced cost in Russia for home consumption, " argues Shaimerden Chikanaev.

    Shaimerden Chikanaev informs that Russia should find a way to deal with gas prohibitions in the face of European Union sanctions. He claimed that Uzbekistan is already suffering from a gasoline scarcity, but is still required to meet contractual obligations to supply to China.

    As a result, ensuring the supply of Russian gas to Kazakhstan's north and east would be easier and more profitable. It is more cost effective not to build a pipeline from gas-producing areas.

    "The proposed trilateral gas union could benefit Russia, Kazakhstan, and Uzbekistan economically. However, this is only possible if it is used for transit to China," expert believes.

    Meanwhile, the EAEU, according to Chikanaev, sees this union as yet another way to avoid sanctions.

    21.06.2023, 15:51   Comments (0)   1304
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