Russia finds way to increase oil exports through Baltic Sea, Reuters reports
Photo: an oil tanker (Getty Images)
Russia is rerouting Kazakh oil exports from the Baltic port of Ust-Luga to the Black Sea port of Novorossiysk. This will allow Moscow to free up capacity for its own exports amid the threat of attacks in the Black Sea, Reuters reports.
Moscow wants all of Kazakhstan’s transit volumes to be rerouted through the Black Sea from the end of August until at least the end of September.
The change in logistics will free up around 100,000 barrels per day of export capacity at the Baltic port of Ust-Luga, which Russia plans to use to export its own crude.
The move comes as Russian exporters face problems in the Black Sea. Due to Ukrainian drone attacks, many shipowners are reluctant to transport Russian oil from Black Sea terminals, leading to a shortage of tankers and loading delays.
Benefits for Kazakhstan and shipping safety
Kazakh KEBCO crude is considered safer for carriers, making it much easier to charter tankers. Ukraine previously pledged not to attack tankers carrying non-Russian crude from Black Sea ports.
Kazakh producers themselves support rerouting the shipments to Novorossiysk, as the Black Sea route is currently more profitable than the Baltic route.
Most KEBCO shipments go to refineries in the Mediterranean and to European refineries owned by KazMunayGas.
Earlier, the fuel shortage in Russia worsened again. Local authorities in at least 10 regions have tightened controls on gasoline sales at gas stations.
In recent months, drone attacks have knocked out up to 40% of Russia’s oil refining capacity. Against this backdrop, around a third of the country’s population has already faced fuel shortages.
