Russia turns to Kazakhstan's Kondensat refinery to process crude as domestic capacity collapses

With domestic refining capacity crippled by Ukrainian drone strikes, Russia has arranged to send crude to Kazakhstan's Kondensat refinery in Zhanaozen for processing, with roughly 70% of the output shipped back to the Russian market and Kazakhstan retaining the remainder for domestic use. Kazakh Energy Minister Yerlan Akkenzhenov announced the arrangement on Aug 25; Kondensat has processed Russian oil delivered via Tatneft's TANECO refinery since 2024, an arrangement renewed in 2025 after UK sanctions hit Tatneft. Analysts were skeptical of the deal's impact: the plant can produce at most ~200,000 tonnes of gasoline a year — equivalent to only about 0.3% of Russia's daily summer gasoline demand of up to 120,000 tonnes. John Roberts of the Atlantic Council called it 'a question of sheer desperation by Russia... It helps, but it doesn't solve the problem,' while Ukrainian energy analyst Hennadii Ryabtsev said Central Asian contributions would remain 'a drop in the ocean for the Russian market.' Ukraine's sanctions commissioner Vladyslav Vlasiuk warned prospective suppliers risk Western sanctions for aiding Russia's fuel supply.