Kazakhstan tries to come to an agreement with oil exporters about quota

/IRBIS, Jan.24, 00/ - REUTERS informs, with the reference to the head of Strategic planning agency Kairat Kelimbetov, that the government of Kazakhstan, which set oil export quotas for year 2000, will try to come to an agreement with oil exporters that were against any kind of restrictions. "The Ministry of energy, industry and trade conducts intensive consultations with major oil producers, and probably reasonable consensus will be found", he said at the press-conference. In 2000 oil exports were reduced to 22 mln tons by Kazakhstan in an attempt to load three domestic refineries. Foreign oil companies were against such actions, since it is more profitable for them to sell oil in external markets at higher prices. The actions taken by the government of Kazakhstan violate clauses of the contracts signed between them, said the investors. "The government, probably, would understand and have a look at its contracts with major oil producers, and some mechanisms may be found there", said the head of the agency. He said the government has found the current situation as a paradox, since the country could not provide its refineries with enough oil, and therefore, the government had to take these steps. A strict fiscal policy towards oil exporters, who hide their taxable income received due to an increase in world prices for metals and energy, are planned to be introduced by the government of Kazakhstan this year. "That is, actually companies try not to pay taxes both in Kazakhstan and their home countries, by paying, you know, through off-shores. I believe such practices will end this year", said Kelimbetov. Kazakhstani government could not realize distinctive features of the activities of such subjects. He said the law on transfer prices could possibly be used here. Earlier, general prosecutor informed of the facts with currency losses of the exporters. Kazakhstani legislature has no distinct requirements for selling exported goods at world prices, it was said. Kelimbetov said the government was preparing corresponding amendments to the law. Among all three Kazakhstani refineries Shymkent refinery was the only one to work stable last year, while all of them were utilizing one third of their capacities. Production of oil reached 26.6 mln tons last year. Official sources inform the country can produce up to 30 mln tons of oil a year. Kazakhstan's exports reached 21.2 mln tons in 1999.