Kyrgyzstan may give Gazprom Neft subsidiary fuel-import monopoly for 2012
BISHKEK. Feb 27 (Interfax) - A Kyrgyz parliamentary committee approved on Monday the draft of an intergovernmental agreement with Russia giving OJSC Gazprom Neft subsidiary Gazprom Neft Asia monopoly rights in the supply and distribution of oil products on the Kyrgyz market in 2012.
"The ratification of the bilateral intergovernmental agreement gives Kyrgyzstan the opportunity of securing Russian oil products in 2012 via Gazprom company lines without export duties," Kyrgyz Energy Minister Askarbek Shadiyev said during a meeting of parliament's international affairs committee on Monday.
"Russia has the suspicion that some of the oil products received would be re-exported to neighboring Tajikistan, so they wish to control the distribution of fuels and lubricants themselves. If this agreement is signed, then oil product imports into Kyrgyzstan will increase this year, and if not, then oil products will increase in cost by 11-12 som per liter," Shadiyev said.
A number of parliamentarians expressed dissatisfaction with the terms of the agreement. Ar-Namys party deputy Nurlan Torobekov said that Russia would gain a big lever for putting economic pressure on Kyrgyzstan, which would raise the specter of interference in the country's internal affairs. "The agreement on supplies of oil products by Russia ties Kyrgyzstan's hand and is a cabal in nature," he said.
However, a majority approved the agreement.
The president of Oil Traders Association of Kyrgyzstan, Zhumakadyr Akeneyev, told Interfax that the republic requires roughly 1 million tonnes of oil product per year.
"Our republic is completely supplied with this amount of fuels and lubricants by means of imports. Last year, 700,000 tonnes came into the republic via Gazprom company lines. The other 150,000 tonnes was brought from Russia by national oil traders. However, according to the draft agreement, now without permission from the company Gazprom Neft Asia our companies will not have the right to import fuels and lubricants into the republic. At the negotiations with Gazprom representatives, it was said that this measure is associated with control over the sale of fuels and lubricants in Kyrgyzstan to combat smuggling," Akeneyev said.
The association has suggested to that the government address an option under which Kyrgyz oil traders are able to acquire fuels and lubricants from Gazprom Neft Asia "from the cost quota set for the republic." "Imported fuels and lubricants do get smuggled out of Kyrgyzstan to Tajikistan. But this is not a large-scale phenomenon. So the allegation that a large amount of Russian oil products is re-exported out of Kyrgyzstan abroad is not really supported. The issue is residents in border areas reselling fuels and lubricants in neighboring population points in Tajikistan, and it is this form of trade with which the appropriate state structures ought to be struggling. But it is not a great amount," Akeneyev said.
The amount of Russian fuels and lubricants to be supplied to Kyrgyzstan this year has yet to be determined, he said. "We figure it will be at least 850,000 tonnes in 2012," he said.
Gazprom Neft Asia is the biggest oil-product importer in Kyrgyzstan at this point and also boasts the largest filling station network in the country. There are also other independent private oil-product traders in the republic.
The official exchange rate for February 27: 46.8953 som/$1.