Russia’s decision to restrict fuel exports will not affect Tajikistan

Asia-Plus

The decision of the Russian government to temporarily ban exports of gasoline and diesel to all countries except members of the Moscow-led Eurasian Economic Union (EAEU) will hardly affect Tajikistan.

 

Agreed in advance

The Russian Federation provides the bulk of Tajikistan’s fuel imports.  Tajikistan imports petroleum products mainly from the Omsk and Orsk oil refineries.  

According to data from Tajikistan’s Antimonopoly Agency, Tajikistan has imported about 452,000 tons of petroleum products over the first six months of this year, with 85.4 percent of them imported from the Russian Federation.  A totaled reportedly included 175,000 tons of gasoline.

Gazpromneft-Tajikistan Limited Liability Company  (LLC) has accounted for 60 percent of Tajikistan’s fuel imports made in January-June this year, the Agency on the State Material reserves under the Government of Tajikistan – 7.0 percent, Seganj LLC – 4,0 percent, and 27 other suppliers have accounted for the remaining 29 percent of the country’s fuel imports made over the reporting period. 

Since 2013, more than 90 percent of all petroleum products have been imported into Tajikistan from Russia on concessional terms.

In accordance with amendments made to the government-to-government agreement between Tajikistan and Russia on petroleum product deliveries to Tajikistan, Tajikistan should provide its proposals on formation of the indicative fuel balances to Russia every year until September 5

Relevant bodies of the two countries should coordinate Tajikistan's internal fuel consumption volumes for the next year and sign indicative balances until October 1.

Besides, Tajikistan should provide information on implementation of indicative balances for nine months and the expected implementation of them during the current calendar year to Russia every year until November 15.

The sides can change the volumes of provided duty-free petroleum products for the current year until August 20 taking into account the reasonable change of internal consumption in Tajikistan.

Recall, Tajikistan was exempted from paying Russian tariffs on oil and gas exports from 1995-2010 and Russia cancelled Tajikistan’s tax exemption on May 1, 2010 that resulted in gasoline prices rising in the country.

The agreement on duty-free Russian oil product deliveries to Tajikistan was signed between the governments of Russia and Tajikistan in Moscow on February 6, 2013

Under this agreement, the sides consider and endorse the indicative fuel balance for the next calendar before October 1 of each year.  Fuels delivered in addition to the indicative fuel balance will be liable to export duty.

Russian petroleum products delivered to Tajikistan in the volumes not exceeding those agreed on indicative balance are not subject to re-export to the third countries.

Under the indicative fuel balance for 2022, Tajikistan could receive 830,000 tons of petroleum products, while the volumes of duty-free petroleum products for this year reportedly increased to 1 million tons.  

According to data from Tajikistan’s Ministry of Energy, Tajikistan last year imported about 853,000 of petroleum products.

A totaled included 387,000 to diesel fuel, 320,000 tons of gasoline, 60,000 tons of jet fuel, 40,800 tons of

 

 

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