Junda Chinese oil refinery in Kara-Balta will get duty-free Russian oil only in case of production of fuel for domestic use. Deputy Prime Minister of Kyrgyzstan Oleg Pankratov announced today at a meeting of the parliamentary committee on economic and fiscal policy.
He told that the country has agreed with Russia on duty-free supplies of not only fuel, but also crude oil. The agreement was ratified. The fuel balance is being revised now.
"We are negotiating with the management of Junda refinery. They have to clearly say how much oil they need. The question is that they will get duty-free oil from Russia only under the condition that it will produce fuel for Kyrgyzstan. If they want to export it, they can buy raw materials on a common basis, with payment of all taxes and duties," Oleg Pankratov said.
Initially, during the construction of Junda Kyrgyz authorities have promised the Chinese investors to solve the problem with the supply of oil. However, the agreement was signed only in June 2016, during the Prime Minister of Russia Dmitry Medvedev's visit to Kyrgyzstan. Since its launch, the oil refinery in best case is working at a third of its capacity.