CUSTOMS UNİON AND KAZAKHSTAN’S POLİCY İN ENERGY SECTOR
Export-import and transit of energy resources have always been one of the key issues for Customs Union member states. Due to strategic and economic interest that Russia input in energy resources, a major supplier of energy resources to the Customs Union’s energy market and beyond, member states of the Union cannot agree on complete reduction of export duties for key sources of energy (out of more than 100 types of products only few are excluded from common regulations including oil and light oil product, natural gas in its gas form and electricity). There is almost no energy supply between Belarus and Kazakhstan. It is Russia that supplies energy resources to Belarus. Belarus used to benefit a lot from the re-export of Russian resources and from producing oil and gas products from Russian resources and selling them further to Europe. However, Russia has secured its interests by introducing export duties on Russian energy resources that are being re-exported to external markets. Kazakhstan has a dual position when it comes to energy supply relations within the Customs Union and beyond. Even though Kazakhstan is also a major oil and gas producer within the Customs Union, it imports more energy from Russia than exports it to other member states. In this sense, representing mainly importing state’s interest, Kazakhstan wants stable and reliable energy supplies and thus advocates for the reduction of export duties for crude oil and light oil products, natural gas and electricity. However, as a major exporter of energy resources to external markets Kazakhstan’s position coincides with Russian. Money transfers to the budget of Kazakhstan from export duties imposed on re-export of Kazakh energy resources are in the interest of this country. On the one hand, Russia considers energy resources to be a strategic commodity and thus does not want to leave it to (Customs Union) market forces alone. On the other hand, other member-states do not want to leave such an important sector out of the Customs Union regulations. In order to smooth tensions between Russia and Belarus as well as Russia and Kazakhstan regarding this issue, Russia is offering certain preferences on the bilateral agreements. And according to the latest statement by the representatives of the Eurasian Economic Commission common energy market within the Customs Union and later the Eurasian Economic Union will not be formed until 2025. This means that Kazakhstan will continue bargaining for better terms and protection of its energy interests with Russia on the bilateral basis.