Russia shifts Kazakh oil exports to Black Sea to boost Baltic capacity
Russia plans to reroute Kazakh crude exports from Baltic to Black Sea from late August through September, freeing capacity for Russian oil.
Russia is redirecting Kazakhstan's crude oil exports from the Baltic port of Ust-Luga to the Black Sea port of Novorossiysk, according to four sources familiar with the matter. The move, expected to last from late August until at least the end of September, aims to free up Baltic export capacity for Russian oil.
Kazakhstan currently ships crude through both Novorossiysk and Ust-Luga. Under the new arrangement, Moscow wants all Kazakh transit volumes to go via the Black Sea, allowing Russian barrels to replace Kazakh cargoes at Ust-Luga. At least two cargoes of Kazakh KEBCO crude scheduled for late August loading at Ust-Luga have already been redirected to Novorossiysk, and no KEBCO loadings are planned at the Baltic port for September. This shift frees roughly 100,000 barrels per day of export capacity at Ust-Luga for Russian crude.
The rerouting comes as Ukrainian drone attacks have made it harder for Russian exporters to secure tankers for Black Sea loadings. Many shipowners are reluctant to carry Russian crude in the region due to security concerns, leading to delays in cargo loadings. Kazakh crude is perceived as lower risk, making it easier to charter vessels. Ukraine has pledged to halt strikes on tankers carrying non-Russian crude from Black Sea ports, as reported by the Financial Times.
Sources said Kazakh producers support the arrangement because Black Sea exports are currently more profitable than Baltic shipments. Most KEBCO crude is sold to Mediterranean refiners or supplied to European refineries owned by Kazakhstan's state oil company KazMunayGas. Russia's Energy Ministry and Kazakhstan's Energy Ministry did not immediately respond to requests for comment.