SerpApi.Org
An agreement to build the refinery, which will have an annual capacity of 450,000 metric tons, was recently signed with Kyrgyz-Chinese company Central Asian Energy LLC. The company will finance the project.
The refinery will produce gasoline and diesel, as well as bitumen and motor oil.
The first stage of construction is expected to be completed in fall 2026.
“Kyrgyzstan depends on imports of petroleum products, purchasing more than 90% of its gasoline from Russia,” Reuters reported. “Russia has faced fuel shortages since late May as production declined following Ukrainian drone attacks on its refineries.”
The Kyrgyz Association of Oil Traders reported shortages of AI-95 and AI-98 gasoline in late June, caused by limited Russian supplies and a seasonal increase in demand, the outlet added.
Kyrgyz authorities have taken several steps in recent weeks to stabilize the fuel market, including introducing temporary price controls, later lifting state regulation of AI-95 gasoline prices and banning petroleum-product exports.
Kyrgyzstan is also expecting fuel deliveries from China and Belarus.
The Energy Ministry separately said it had reached an agreement with neighboring Uzbekistan to process some of Kyrgyzstan’s petroleum products at Uzbek refineries before shipping the finished fuel back to Kyrgyzstan.
Kyrgyzstan, which imports more than 90% of its fuel from Russia, is also negotiating purchases of fuel and lubricants from Belarus, Azerbaijan, Kazakhstan, Uzbekistan and Turkmenistan.
Oil refining volumes at Russian refineries fell to their lowest level in more than 21 years following a wave of Ukrainian attacks, deepening fuel shortages inside Russia.
Russian gasoline production fell in early July to a level equivalent to only about 65% of average seasonal consumption after Ukrainian drone strikes forced several major refineries to suspend operations.
The fuel crisis caused by Ukrainian strikes on Russian oil infrastructure has brought the effects of the war into the lives of more Russians than ever before. The shortages directly affect about 50 million people, or 35% of Russia’s population.
The Russian government reintroduced a ban on gasoline exports by producers on April 2, extending it through the end of July. Russia also banned diesel exports through the end of July.
Read also: Fuel shortages expose cracks in Putin’s bargain with the Russian public
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Read the original article on The New Voice of Ukraine
Section: Business
Author: Дем'ян Шевко
