Aktau, 21 October. The National Security Committee uncovered a scheme in Mangystau region to export oil products illegally: from 2019 to 2023 more than 160,000 tonnes of fuel worth a total of about 45 billion tenge were shipped through Aktau port disguised as furnace fuel.
According to the KNB, the scheme was run by a businessman from Mangystau region. He signed contracts with oil producers to buy crude, which was then processed at two mini-refineries, Standart Petroleum and Mangystau Oil Refining. Fake quality certificates were issued for the finished products, which were passed off as furnace fuel and shipped abroad by tanker through Aktau seaport. Through Batys Nefte Trade LLP alone, according to the agency, more than 160,000 tonnes of oil products were illegally exported over four years.
Property of those involved in the criminal case was confiscated, including both mini-refineries and the tanker used to carry the products; the state recovered more than 2 billion tenge in illegal income and unpaid taxes. The Aktau city court had earlier sentenced five members of the organised criminal group, including the heads of the mini-refineries and of the trading company, to eight years in prison. The alleged organiser of the scheme remains at large and has been put on an international wanted list.
Furnace fuel is a heavy fuel for boilers and stoves: its export is regulated differently from petrol and diesel, which Kazakhstan restricts and bans from export to keep fuel on the domestic market. Passing off one oil product as another therefore makes it possible to get round these restrictions and sell fuel abroad for more than at home.
What it means: For several years fuel that should have stayed in Kazakhstan left the country by sea under another name; the scheme has now been uncovered and the refineries and tanker taken from those involved.
Who benefits: The scheme brought income to its organisers, who sold fuel abroad at higher prices; the losers were the domestic market, which export restrictions are meant to protect, and the budget. Uncovering the case benefits the state, which recovers part of the damage and the confiscated property.
Background: Kazakhstan regularly restricts exports of petrol and diesel because domestic fuel prices are lower than in neighbouring countries; the KNB announced that the scheme had been uncovered on 21 October.
List of sources used: Ulysmedia
Artificial intelligence was used in preparing this material.
