Ukraine agrees to spare non-Russian tankers in Black Sea oil deal

Ukraine has agreed not to target certain non-Russian oil tankers or infrastructure used to export Kazakhstan’s crude via the Black Sea, Bloomberg reported, citing a U.S. official familiar with a private understanding between Washington and Kyiv.

The commitment followed discussions between senior U.S. and Ukrainian officials and could facilitate a recovery in oil flows through the Caspian Pipeline Consortium (CPC) terminal near Novorossiysk, Russia.

As part of the arrangement, Ukraine has established contact points enabling commercial shipping companies to share vessel information and coordinate safe passage, the official said.

Under the terms of the understanding, Kyiv will refrain from attacking CPC infrastructure and vessels bound for the terminal, provided they are not sanctioned by Ukraine, do not carry Russian cargo, and are not owned by Russian individuals or entities. Ukrainian authorities are also advising shippers on which vessels may still be at risk of being targeted.

The CPC route typically handles around 2% of global crude supply and serves as Kazakhstan’s primary oil export corridor. European refiners rely heavily on crude shipped from the terminal.

Recent drone strikes near Novorossiysk disrupted loading operations and prompted some shipowners to avoid the facility. Exports of CPC Blend crude are expected to decline by roughly one-third in August, although delayed cargoes from July have introduced uncertainty into the forecast.

Commercial vessels chartered by U.S. companies suspended loading during a wave of attacks in the week of July 20. Operations resumed on July 27, but vessels at the terminal were struck again two days later.

It remains unclear whether the new safeguards will be sufficient to reassure tanker operators. Previous arrangements designed to protect commercial shipping failed to prevent attacks on some vessels that had been included on no-target lists.

Heightened security risks have driven tanker rates sharply higher. Earnings for ships transporting CPC crude to the Mediterranean exceeded $400,000 per day on Friday, according to the Baltic Exchange, marking a record high for the route.

Any rebound in Kazakhstan’s exports could help ease global supply concerns at a time when conflict involving Iran and restrictions on traffic through the Strait of Hormuz continue to limit availability of other crude supplies.

By Tamilla Hasanova