22 December 2022 | Macroeconomics

Germany's pivot to Kazakh oil looks like a pipe dream

In a few days, Germany will stop importing oil from Russia. This creates pressure on countries to look for alternatives.

One option is to use Russia’s pipeline system to import oil from Kazakhstan. It is worth noting that at the moment there is speculation about a test shipment in early 2023.

But getting Kazakh crude oil will be challenging for several reasons. First, the pipeline through which the oil would have to flow is Russian (the Druzhba oil pipeline). Second, any decision on oil deliveries can only be made by Moscow. So far, Russian oil pipeline operator Transneft PJSC has not received a single request from Kazakhstan for fuel delivery to Germany.

Third, German refineries are accustomed to receiving black gold, according to the characteristics of Urals. This kind of black gold has tight parameters for density and sulfur content.

Another question is: where would Kazakhstan find enough crude oil to transfer to East Germany.



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