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Ukraine has agreed to a private US request to refrain from attacking certain non-Russian oil tankers and Black Sea infrastructure critical to the export of Kazakh crude, Bloomberg reports, citing a US official.
The understanding was reached after talks between senior US and Ukrainian officials and is intended to help restore oil flows that were disrupted by a series of recent attacks near the Caspian Pipeline Consortium (CPC) terminal in Novorossiysk.
Under the arrangement, Ukraine has set up communication channels for commercial vessels to provide information needed to ensure their safe passage through the area.
The CPC terminal is a key export route for Kazakh oil, as Kazakhstan has limited alternatives for transporting its crude to international markets. The consortium typically handles about 2% of global crude supplies, while European refineries rely significantly on oil from the region.
Ukraine has intensified attacks on Russian oil infrastructure in recent months, including strikes on vessels near the CPC terminal. The attacks disrupted loading operations and prompted some shipowners to keep their vessels away from the area.
Conditions for vessels to avoid attacks
Under the US-backed arrangement, Ukraine has agreed not to target CPC infrastructure or non-Russian vessels heading to the terminal, provided that the ships:
- are not subject to Ukrainian sanctions;
- are not carrying Russian oil or other Russian cargo;
- are not owned by Russian individuals or companies.
It remains unclear whether the agreement will be enough to restore oil shipments to normal levels or reassure shipowners following previous incidents involving vessels that had reportedly been identified as protected from attack.
The initial wave of drone strikes on July 20 prompted commercial vessels chartered by US companies to suspend loading operations at the CPC terminal. Operations resumed on July 27, but two days later, commercial vessels loading at the terminal were again targeted by drones.
CPC exports expected to decline
The disruptions are expected to reduce exports of CPC Blend crude by roughly one-third this month, although the exact impact remains uncertain because some July cargoes were postponed until August.
The risk of entering the terminal has also pushed tanker freight rates sharply higher. Only a limited number of shipowners are willing to call at the Russian port, with recent attacks adding to concerns over security.
Daily earnings for tankers carrying CPC crude to the Mediterranean exceeded $400,000 on Friday, according to Baltic Exchange data, marking the highest level recorded for the route.
The disruptions come as Ukraine continues to target Russia's oil sector, putting additional pressure on Moscow's ability to balance domestic fuel demand with crude export revenues.
