Kazakhstan replaces Urals with KEBCO in oil pricing methodology for Black Sea and Baltic routes
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Kazakhstan's government amended its crude oil pricing methodology on August 26, 2026, replacing Urals quotes with the KEBCO-linked Skebco spread for Black Sea and Baltic export routes. The change applies retroactively from January 1, 2026, and extends to Aktau–Makhachkala and Aktau–Baku/Sangachal–Batumi routes. Urals remains in the methodology for Caspian FOB deliveries and the Druzhba pipeline.
Key Facts
- Government Resolution No. 763 of August 26, 2026, removes Urals quotes from the pricing formula for the Atyrau–Samara Black Sea route and Baltic Sea routes.
- The new Skebco spread is linked to KEBCO (Kazakhstan Export Blend Crude Oil), a brand Kazakhstan introduced in June 2022.
- The resolution applies retroactively from January 1, 2026, and automatically extends to the Aktau–Makhachkala and Aktau–Baku/Sangachal–Batumi routes.
- Urals quotes remain in the methodology for Caspian Sea FOB deliveries and the Druzhba pipeline export formula.
- The official list of market price sources is now approved by a 2023 Ministry of Finance order instead of a 2009 government resolution.
Pricing Methodology Change
Kazakhstan's government amended the crude oil pricing methodology through Resolution No. 763 dated August 26, 2026. The formula for the Atyrau–Samara route via Black Sea ports and for Baltic Sea routes no longer references Urals quotes. A new Skebco spread tied to KEBCO replaces Urals in those formulas. The Aktau–Makhachkala and Aktau–Baku/Sangachal–Batumi routes reference the Black Sea formula, so the replacement extends to them automatically. The resolution takes effect retroactively from January 1, 2026.
Scope and Exclusions
Urals quotes remain in the methodology for Caspian Sea deliveries on FOB terms. The Druzhba pipeline export price formula is built entirely on Urals spreads—Rotterdam, Mediterranean, Ex-Novo, Ex-Baltic—and is not affected by this resolution. The change is a partial replacement of Urals in state regulation, not a complete abandonment. The official list of market price sources is now approved by a 2023 Ministry of Finance order, replacing a 2009 government resolution.
KEBCO and Tax Context
Kazakhstan introduced the KEBCO brand in June 2022 to sell oil physically identical to Urals under a Kazakh name and distance itself from sanctions against Moscow and the G7 price cap. KEBCO has traded at a premium to Urals since then. The new Tax Code effective from early 2026 gives oil companies the right to choose between Dated Brent, KEBCO, and Urals for mineral extraction tax and export rent tax. PwC Kazakhstan reports ongoing disagreements between the Ministry of Finance State Revenue Committee and exporters over taxation of KEBCO exports.
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Kazakhstan replaces Urals with KEBCO in oil pricing methodology for Black Sea and Baltic routes
