KAZAKHSTAN BANS JET FUEL EXPORTS THROUGH END OF

UNCLAS ALMATY 003072 SIPDIS SENSITIVE E.O. 12958: N/A TAGS: KZ MOPS PREL ENRG ECONOMIC SUBJECT: KAZAKHSTAN BANS JET FUEL EXPORTS THROUGH END OF 2005 REF: ALMATY 1932 ¶1. (U) On August 20, the government of Kazakhstan imposed another temporary ban on the export of aviation fuel, to last through December 31, 2005. According to the GOK decree, the ban on jet fuel was imposed "for the purpose of saving the required aviation fuel for economic needs of the republic and in accordance with item 2 of article 8 of the Customs code." ¶2. (SBU) A Red Star source recently told DATT that the company has not purchased any fuel oil from Kazakhstan since the first Kazakhstani fuel ban in April. Thus, while the ban tightens an already-difficult regional market, it does not present Red Star with any new, overnight supply issues. ¶3. (SBU) Comment: This decision appears to have been made for economic rather than political reasons, and thus should not be interpreted as an intentional hindrance to OEF operations at Manas airport in Kyrgyzstan. Our petroleum sector contacts confirm that consumption of jet fuel in Kazakhstan exceeds production, necessitating increasing imports to meet demand. Post will underscore the potential negative impact on OEF operations to the GOK and seek an exemption for OEF-related shipments. Given that no shipments are presently pending, however, the GOK is unlikely to waver. End Comment. ASQUINO NNNN