In the period 2017-2018 the price of transit from Russia to China was $11.36/ton, including $3.11/ton to Atasu and $8.25/ton to Alashankou.
Our view
Transit traffic from Russia to China accounts for a relatively small (compared to export) volume of KTO traffic — 10mn tons (22% in 2017). Despite this, we rate the news as clearly positive for KazTransOil shares and reiterate our Buy recommendation with 12M target price of T1582/share.
