Ukraine agrees not to strike Kazakh oil tankers in Black Sea

Ukraine has reached an agreement not to target specific non-Russian-owned tankers and infrastructure associated with the Caspian Pipeline Consortium (CPC), according to reports from Bloomberg on August 8. The CPC plays a crucial role in Kazakhstan's oil exports, as the nation lacks sufficient capacity to transport oil through alternative routes.

The CPC terminal located on the Black Sea coast in Russia is integral to Kazakhstan's oil shipments, providing approximately 2% of the global oil supply, which European refineries heavily rely on. A U.S. official, speaking anonymously, revealed that Ukraine has established contact points to assist shipping companies and ensure the safe passage of their vessels.

This agreement followed a meeting between high-ranking U.S. officials and Ukrainian leadership. Under the terms of the deal, Ukraine has pledged to refrain from striking CPC infrastructure and vessels destined for the terminal, unless those tankers are subject to Ukrainian sanctions, carry Russian cargo, or belong to Russian individuals or entities.

Despite the agreement, it is uncertain whether it will fully restore export volumes or alleviate shipping companies' concerns, as past protective measures have not provided complete security guarantees. Following a series of drone strikes in early July, commercial vessels chartered by American companies temporarily ceased loading at the terminal.

Operations resumed on July 27, but drone attacks struck the terminal again just two days later. Following the disruptions, exports of CPC Blend crude oil are projected to decrease by around one-third this month.