Ukraine agrees to avoid targeting some tankers and Black Sea oil infrastructure

Ukraine has reached an agreement to refrain from targeting certain non-Russian oil tankers and Black Sea infrastructure used for exporting Kazakhstan's crude through the Caspian Pipeline Consortium (CPC) terminal near Novorossiysk, Russia, according to a U.S. official cited by Bloomberg. The commitment, which emerged from discussions between senior U.S. and Ukrainian officials, aims to restore oil flows through the terminal.

Ukraine has established contact points to facilitate the sharing of vessel information and ensure safe passage for commercial ships. Under the agreement, Kyiv will not attack CPC infrastructure or vessels carrying non-Russian cargo if they are not sanctioned by Ukraine and are not owned by Russian individuals or entities. Ukrainian authorities will also guide shippers on which vessels may be targeted.

The CPC route, which handles around 2% of global crude supplies and serves as Kazakhstan's primary oil export channel, is crucial for European refiners. Recent drone attacks near Novorossiysk disrupted loading operations and discouraged some shipowners from using the facility. CPC Blend exports are projected to decline by approximately one-third in August, though uncertainty remains due to delayed July cargoes.

Despite recent resumption of operations, commercial vessels chartered by U.S. companies faced additional attacks in early August. The implementation of these safeguards may provide some reassurance to tanker operators, although the security risks persist. The new agreement could help alleviate global supply concerns, as Kazakhstan's exports and the Iran war, coupled with restricted traffic through the Strait of Hormuz, are contributing to market tightness.