Ukraine Agrees to Avoid Targeting Certain Black Sea Oil Infrastructure and Tankers

Ukraine has agreed to refrain from targeting some non Russian oil tankers and Black Sea infrastructure critical for exporting Kazakhstan crude oil, according to a US official. The agreement follows strikes on vessels in July that halted loadings and was secured after meetings between senior US and Ukrainian leadership. The commitment specifically covers the Caspian Pipeline Consortium terminal in Novorossiysk, Russia, which handles approximately 2 percent of global crude supplies and is vital for Kazakhstan because the country lacks significant alternative export routes.

Under the terms of the arrangement, Ukraine will not target vessels bound for the terminal provided they are not owned by Russian individuals or entities, are not carrying Russian cargo, and are not subject to Ukrainian sanctions. Ukraine has also established points of contact to provide instructions to commercial shippers to ensure safe passage. These measures come as European refineries remain heavily reliant on volumes from the region and global oil flows face pressure from other geopolitical tensions.

Despite the agreement, shipping activity remains below normal levels. Recent drone attacks near Novorossiysk have increased tanker costs and caused Russian authorities to halt loadings during drone alerts. Some companies previously provided Ukraine with lists of ships to avoid, yet some of those vessels were still attacked. Consequently, exports of CPC Blend are expected to decrease by about a third this month.