Kazakh oil exports halted after drones hit CPC terminal
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- Kassym-Jomart Tokayev, sitting with Vladimir Putin in Omsk, called to 'freeze this conflict' and return to 'Istanbul formula 2.0,' praising Putin's 'diplomatic flexibility' and naming Russia among 'great powers' that could guarantee peace in Ukraine.
- Kazakhstan slashed oil production after drone attacks blamed on Ukraine forced the CPC marine terminal at Novorossiysk to suspend shipments; the Foreign Ministry on July 19 called the strikes an 'unacceptable encroachment' on its economic interests.
- Oil and gas account for roughly a fifth of Kazakhstan's GDP, and 80 percent of its oil exports are at risk, according to regional expert Daniil Kislov, who called it 'a direct strike on the economy and budget.'
- Romania, which gets more than 60 percent of its crude from Kazakhstan, could see gasoline production drop by up to 15 percent if shipments don't resume, interim Prime Minister Ilie Bolojan said on Thursday.
- Chevron CEO Mike Wirth approached White House officials earlier this week to resolve the matter, prompting the Trump administration to warn Ukraine against attacking non-Russian ships in the Black Sea, the Wall Street Journal reported.
- The Novorossiysk terminal is also a target of Ukraine's campaign against Russia's 'shadow fleet'; Kyiv has hit almost 200 tankers and cargo ships in the Sea of Azov and Black Sea in recent weeks, while the port now reportedly shelters Russia's Black Sea Fleet after it fled Crimea.
Why it matters: The CPC pipeline is the EU's second-largest crude source and supplies over 60 percent of Romania's oil, with officials warning of up to a 15 percent drop in gasoline output if flows don't resume — while 80 percent of Kazakhstan's oil exports sit at risk. Western majors Chevron, ExxonMobil, and Shell own consortium stakes, which is reportedly why the White House stepped in to pressure Kyiv off the target.
