Ukraine Agrees Not to Attack Tankers and Oil Infrastructure in the Black Sea

Ukraine has agreed to refrain from attacking the infrastructure of the Caspian Pipeline Consortium and non-Russian vessels heading to its terminal in Novorossiysk, provided they are not under Ukrainian sanctions, do not carry Russian cargo, and are not owned by Russian individuals or legal entities. This commitment was made by Ukraine following a meeting between U.S. officials and Ukrainian leadership. Kyiv has established contact points for commercial shippers to relay information to ensure the safe passage of vessels. Ukraine is providing clarifications on which ships may become targets. The agreement concerns the transportation of Kazakh oil through the CPC terminal, which accounts for about 2% of global crude oil supplies. After attacks in the terminal area, some shipowners temporarily halted loading. The first wave of attacks starting July 20 led to the suspension of loading on certain vessels. Operations resumed on July 27, but two days later, ships were attacked again. Due to disruptions, CPC Blend exports in August may decrease by about a third. The risks have affected freight rates: tanker earnings on the route from CPC to the Mediterranean exceeded $400,000 per day on Friday, a record high. It remains unclear whether the new agreement will be sufficient for the full normalization of shipments.

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