35,000 metric tons in August: Kyrgyzstan imports crude oil via Kazakhstan for the first time
Central Asia Column “Steppe Ahead”
35,000 metric tons of crude oil in two weeks: In August, Kyrgyzstan imported more oil via a new route through Kazakhstan than it did in all of 2025. The Kazakh pipeline operator KazTransOil began transit shipments on August 15. The reason is a fuel crisis: Drone attacks are paralyzing Russian refineries, gasoline prices are rising in Kyrgyzstan, and some gas stations are running out of fuel.
New Route: Pipeline to Shagyr, then by rail tanker to Kyrgyzstan
KazTransOil announced the start of deliveries on September 3, according to the Azerbaijani news agency Trend. The oil first flows through the Kazakh pipeline network to the loading point in Shagyr. There, KazTransOil pumps it into rail tank cars, which transport it to Kyrgyzstan by rail. In August, 35,000 metric tons arrived via this route. The company stated: “The start of transit shipments to Kyrgyzstan opens up a new route for oil transport through Kazakhstan and expands the range of transit services offered by KazTransOil.” The English-language regional newspaper *Times of Central Asia* puts this volume into perspective: In all of 2025, Kyrgyzstan imported only 26,400 metric tons of crude oil. A single month thus exceeded the entire previous year’s total. According to the newspaper, the oil comes from Russia. At the same time, the figures show just how stagnant Kyrgyz oil refining has been: The country’s two major refineries can collectively process 1.3 million metric tons per year, but in 2025 they received only a fraction of that as feedstock. For KazTransOil, the route represents additional business: In the first half of the year, the company transported 22.9 million metric tons through its 5,196-kilometer network—643,000 metric tons more than a year earlier.
Fuel Crisis: Gasoline Prices Rise 12% in Three Months
The reason for the rush lies in Russia. According to the Ministry of Energy, Kyrgyzstan consumes approximately 1.6 million metric tons of fuel annually, 93% of which comes from Russia, reports the Kyrgyz financial portal Akchabar. This supply is now disrupted: Following a drone attack on August 11, the refinery in Orsk, Russia, came to a standstill; repairs could take up to six months, according to the Times of Central Asia. The consequences are evident at Kyrgyz gas stations. From May to August, the price of AI-92 gasoline rose from 78.4 to 87.9 som per liter—about 1 U.S. dollar. That represents a 12% increase in three months. AI-95 most recently cost 109.9 som, and diesel 99.9 som. Some gas stations temporarily ran out of AI-95. Import figures illustrate the extent of this dependence: According to the Times of Central Asia, from January through May, Kyrgyzstan imported 251,000 metric tons of gasoline, 235,150 metric tons of diesel, and 48,150 metric tons of kerosene from Russia. The government is therefore seeking new suppliers. On August 17, Deputy Chief of Staff Erlist Akunbekov negotiated with the Chinese conglomerate Sinopec in Urumqi regarding direct deliveries; more than ten Kyrgyz oil trading companies were also present at the table. The first shipment from China arrived by truck in July, but logistics across the mountain passes limit the volume. Kazakhstan has pledged 15,000 to 20,000 metric tons of heating oil per month, and agreements are in place with Belarus for diesel and kerosene.
Domestic refineries will continue to cover only half of the demand
Crude oil from the new route is intended to boost domestic refining capacity. The Junda refinery in Kara-Balta can process 800,000 metric tons per year; a $194 million retrofit is planned to bring it up to the Euro 5 emissions standard. The Kyrgyz Petroleum Company in Jalal-Abad has a capacity of 500,000 metric tons and is switching from AI-80 to AI-92 and AI-95. President Sadyr Japarov is nevertheless tempering expectations: According to the Times of Central Asia, even after modernization, both plants will cover only about half of the demand, which is why he is calling for two additional refineries. The new route also solves only part of the problem. Kyrgyzstan is replacing idle Russian refineries, not Russian oil: the raw material itself continues to come from Russia. If Russian production declines or new sanctions extend to crude oil exports, this will also affect the new route. It also remains unclear how much volume rail shipments from Shagyr can handle on a long-term basis and at what cost. Every transfer from the pipeline to rail increases the cost of delivery, and rail capacity between Kazakhstan and Kyrgyzstan is limited. The question of price also remains: Domestic processing protects against shortages of Russian finished gasoline, but not against rising crude oil prices. The direction is clear: Kyrgyzstan is shifting value creation to its own territory and making Kazakhstan the hub of its oil supply. If the ramp-up is successful, a refining industry will emerge in Kara-Balta and Jalal-Abad that will supply half of the domestic market and create jobs. If it fails, Bishkek will remain dependent on Russian refineries, whose outages it cannot control. For the country’s fuel market, the new route thus represents the biggest shift in years.
Source: Trend, Times of Central Asia, Times of Central Asia, Akchabar (all EN)