Bloomberg reports U.S.-brokered deal halts Ukraine strikes on CPC
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Bloomberg reported Saturday, citing a U.S. official, that Ukraine agreed to halt strikes on the Caspian Pipeline Consortium's infrastructure and some tankers shipping Kazakh oil through the Black Sea, under a deal brokered by the United States. The agreement exempts vessels not under Ukrainian sanctions, not owned by Russian entities, and not carrying Russian oil. The deal follows a series of attacks that have disrupted loadings at the CPC terminal, which typically handles about 1.5-1.7 million barrels per day.
The Reported Agreement
Bloomberg reported Saturday, citing an unnamed U.S. official, that Ukraine agreed to halt strikes on the Caspian Pipeline Consortium’s infrastructure and certain tankers shipping Kazakh oil across the Black Sea. The deal, brokered by the United States, provides that vessels not targeted by Ukrainian sanctions, not owned by Russian entities, and not carrying Russian oil or cargo would be spared. Communication channels were established to allow shipping companies to relay vessel details and coordinate safe passage to the CPC terminal near Novorossiysk.
Attack Disruptions
The terminal faced a surge in attacks in late July, forcing U.S.-chartered commercial vessels to suspend loadings for several days from July 27. Operations briefly resumed before another strike on July 29. CPC loadings in July fell more than 20% below plan to about 1.2-1.3 million barrels per day, versus the usual 1.5-1.7 million bpd, according to Reuters. The pipeline is Kazakhstan’s main export route, handling about 2% of global oil supply, and the country has limited capacity to divert such volumes quickly.
What's Next
The U.S. and Ukrainian governments have not officially confirmed the reported agreement. It remains unclear whether the deal will hold, given that previous attacks resumed after a temporary halt in late July.
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Bloomberg reports U.S.-brokered deal halts Ukraine strikes on CPC
