Kazakhstan has offered to supply oil to Belarus's two refineries after Russia failed to agree new terms for deliveries, Kommersant reports Thursday citing the Kazakh ambassador in Minsk.
Kazakhstan plans to become a shareholder in the two refineries, which had been targeted by Russia's biggest producers OAO Rosneft (ROSN.RS) and OAO Lukoil (LKOH.RS), the paper reports, adding that analysts believe the move is political and may not be practical.
The Kazakh ambassador told the paper that his country has proposed supplying oil to Belarus's refineries in the past, but that it only became viable at the beginning of this year with a customs union between the countries. He didn't tell the paper how Kazakhstan was considering shipping its oil to Belarus.
Russia began reducing supplies to Belarus' domestic market after a pricing deal between the two countries expired Dec. 31.