Mongolia Seeks Euro-5 Fuel From Kazakhstan Amid Export Limits

Marina Kovaleva

Mongolia plans to buy Euro-5 gasoline and diesel from Kazakhstan, China and South Korea as annual oil-product consumption rose to 3.1 million tonnes from 1.7 million tonnes in four years.

The decision, reported by the Union of Oil Service Companies of Kazakhstan in its Telegram channel, aims to reduce Mongolia’s dependence on Russian supply. The union said: “Mongolia has reported purchases of Euro-5 fuel from Kazakhstan, China and South Korea. The country seeks to reduce dependence on Russian supply as domestic consumption rises.”

Three major Kazakh refineries produce gasoline and diesel under the K-4 and K-5 standards, the domestic equivalents of Euro-4 and Euro-5. By November, confirmed deliveries from Russia to Mongolia totaled 70,000 tonnes.

Kazakhstan’s role in the procurement remains undefined. The parties have disclosed none of four principal commercial terms:

• Volume: The parties have not disclosed an export volume.
• Grade: They have not specified the gasoline or diesel grade for the proposed Kazakh supplies.
• Price: They have not announced a price or pricing formula.
• Route: They have not named a delivery route.

Supply and delivery constraints

Kazakhstan already restricts gasoline and diesel exports to protect its domestic market. The union said a new export channel will depend on approved supply arrangements and confirmed product surpluses.

The union’s main test is not simply production, but delivery to the buyer at a competitive price. Mongolia has already faced delays in unloading tank cars and limited storage capacity when switching to winter diesel.

Kazakhstan produces almost no winter diesel and imports it from Russia. That shortfall adds another constraint to any regular supply agreement with Mongolia.

What does the Mongolia prospect mean for suppliers?

KazService said regular exports could raise demand for “oil-depot and loading-rack servicing; tank-rail transport and repair; fuel-quality laboratory testing; tank-farm modernization; and digital inventory and shipment tracking.”

The union described Mongolia as a potential market for logistics and technical services, not a confirmed sales channel. Regular contracts and specific volumes have not been announced, so claims of large-scale exports would be premature.

The route’s value will depend on freight economics, supply stability and Kazakhstan’s ability to meet domestic demand. It may diversify sales, but those factors will determine whether volumes develop.

Domestic prices and export ban

Retail prices for AI-92 gasoline and diesel in Astana’s large fuel-station chains rose by 8 tenge per litre several days ago.

Energy Minister Yerlhan Akkenzhenov signed an order banning exports of gasoline, diesel and other petroleum products from 22 November 2026 through 22 May 2027. Any Mongolian exports would therefore require compliance with Kazakhstan’s export controls and access to surplus fuel.

Condensat’s Russian exposure

The Condensat refinery in Aksay, West Kazakhstan, processes Russian feedstock at a capacity of about 1 million tonnes a year. Akkenzhenov said in August that the plant will send 70% of its gasoline and diesel output to Russia and up to 30% to Kazakhstan.

The refinery retains the right to export beyond the Eurasian Economic Union (EAEU). Russia asked Kazakhstan for gasoline after drone attacks on Russian refineries, which contributed to a fuel shortage at those plants.

Condensat identified Latvian citizen Dzintars Puzaks as its ultimate owner in financial disclosures for 2025.

Unused quotas and grey exports

Traders said the Atyrau and Pavlodar refineries each received 17,500-tonne quotas to export gasoline to Russia in the third quarter. Neither used its allocation.

In late October, KazMunaiGas chief Askat Khasenov said the company’s priority remained the Kazakh domestic market, despite reports that two large refineries had received but left export quotas unused.

Kazakh authorities have also stepped up efforts against illegal or unreported fuel exports to Russia, Kyrgyzstan and Uzbekistan, where fuel prices are substantially higher. Drone attacks on Russian refineries have deepened the fuel deficit there, prompting the Russian government to request Kazakh assistance.

Outlook

For now, Mongolia remains a potential market for Kazakh refiners and oil-service companies, not a contracted export channel with disclosed commercial terms.