Russia’s New Rules Disrupt Kazakhstan Oil Shipments Via Black Sea

Kazakhstan’s oil exports have hit a temporary roadblock after Russia introduced new restrictions on foreign tankers in response to Western sanctions, Orda.kz reports.

According to Reuters, the new ban on loading foreign vessels at Russian Black Sea ports has effectively halted oil exports from Kazakhstan that are transported by a consortium involving American energy giants. The disruption affects shipments through the Caspian Pipeline Consortium (CPC), a key route jointly owned by Kazakhstan and Russia.

Roughly 80% of Kazakhstan’s oil exports — its so-called “black gold” — move through the CPC pipeline.

Reuters estimates that President Vladimir Putin’s new restrictions — issued in retaliation for the EU’s latest sanctions package — could affect about 2% of global oil supplies. Under the decree, foreign tankers must now obtain clearance from Russia’s Federal Security Service (FSB) before accessing Russian ports.

While Putin’s order has raised alarm over the future of Kazakhstan's oil exports, Reuters cites sources saying the issue is likely to be resolved within a few days.

Oil analyst Olzhas Baidildinov agrees that the new rules are unlikely to seriously impact Kazakhstan. He sees no indication that Russia intends to disrupt CPC operations or specifically target Kazakh shipments.

Under President Putin’s decree, all foreign oil tankers must now obtain clearance from the FSB before entering Russian ports. This is a formal procedure they’ll have to follow. Fortunately, the CPC has storage facilities both at the marine terminal and along the pipeline, which means operations can continue steadily for about a week even during this pause. explains Olzhas Baidildinov

For now, oil shipments from Kazakhstan through Russian Black Sea ports appear to be paused only until the required permits are issued.

Original Author: Nikita Drobny