Almatinka meets with a five-story fall.
In a recent development, Kazakhstan's oil shipments through the Caspian Pipeline Consortium (CPC) terminals in Novorossiysk faced a temporary halt due to new Russian regulations requiring foreign vessels to obtain prior approval from the Federal Security Service (FSB) to access Russian Black Sea ports.
The new clearance requirement, effective July 21, 2025, initially stalled exports handled largely by the CPC system, which accounts for over 80% of Kazakhstan’s oil exports. However, following the issuance of clearances by the FSB, shipments have since resumed, and volumes for August are projected to remain stable around 6.5 million tons.
Amid these challenges, Kazakhstan is actively pursuing alternative export routes to reduce dependency on Russia. This includes boosting oil exports via the Baku-Tbilisi-Ceyhan (BTC) pipeline through Azerbaijan and Turkey. Kazakhstan has already shipped around 800,000 tons through BTC in the first half of 2025, with plans to increase this volume as part of broader diversification efforts.
However, the BTC route faces logistical constraints such as port modernization and tanker capacity. Despite these challenges, Kazakhstan remains committed to diversifying its export routes to mitigate vulnerability from Russian port regulations.
Nurlan Zhumaqulov, Director of the public fund Energy Monitor, commented on the situation, stating that there are issues with oil shipments and that negotiations between JSC "KazTransOil" and the Ust-Luga port operator are ongoing. He also added that currently, only one tanker is waiting at the Caspian Pipeline Consortium (CPC) terminal.
The initiative to tighten measures in Russia originated from the country's Security Council, following a series of unsolved incidents involving explosions on oil tankers. The operator of the Ust-Luga port is demanding a $1 billion liability insurance policy from Russian insurance companies, which are under sanctions.
The Ministry of Energy of Kazakhstan stated that oil shipments through Russian Federation ports were not halted, contradicting initial reports. The Ministry of Foreign Affairs reported the outcome of the negotiations in response to a request from CMN.KZ, and Kazakhstan sent an official position to the Ukrainian side after drone attacks on the Kropotkinskaya oil pumping station of the Caspian Pipeline Consortium (CPC).
In summary, the recent Russian clearance requirements have caused a brief halt in Kazakhstan's oil exports via CPC terminals at Novorossiysk. However, exports have since resumed, and volumes for August are projected to remain stable. Kazakhstan is accelerating efforts to diversify export routes, increasing shipments through the BTC pipeline to mitigate vulnerability from Russian port regulations. Despite diversification, CPC remains the dominant export route, making Kazakhstan's oil exports still sensitive to Russian policy decisions. This situation reflects ongoing geopolitical and logistical tensions impacting Kazakhstan's oil export infrastructure and highlights Moscow’s strategic leverage given its control of key transit points.
The new Russian regulations have resulted in Kazakhstan exploring alternative options in the finance sector, seeking to secure large insurance policies from non-sanctioned insurance companies to address logistical constraints in the energy sector, such as the port modernization and tanker capacity issues in the Baku-Tbilisi-Ceyhan pipeline.
Moreover, as Kazakhstan strives to reduce dependence on Russia, the country's finance and energy industries are closely monitoring the developments in the industry, particularly in relation to the oil sector, as the negotiation between JSC "KazTransOil" and the Ust-Luga port operator continues.
