Russia is rerouting Kazakhstan's crude oil exports from the Baltic port of Ust-Luga to the Black Sea port of Novorossiysk, freeing up capacity for more Russian oil exports from the Baltic amid heightened Black Sea security risks, four sources said.
Kazakhstan exports crude through both Novorossiysk and Ust-Luga, but Moscow wants all Kazakh transit volumes routed through the Black Sea from late August until at least the end of September, the sources familiar with the matter said.
The move would allow Russia to replace Kazakh barrels at Ust-Luga with its own crude exports, while Ukrainian drone attacks make it more difficult for Russian exporters to secure tankers for Black Sea loadings.
At least two cargoes of Kazakh KEBCO crude due to load at Ust-Luga in late August have been redirected to Novorossiysk, three of the sources said. They added that no KEBCO loadings are currently planned at the Baltic port in September, freeing up about 100,000 barrels per day of export capacity at Ust-Luga for Russian crude.
Russia's Energy Ministry and Kazakhstan's Energy Ministry did not immediately respond to requests for comment.
Russian exporters are struggling to secure tankers for Black Sea loadings because many shipowners are reluctant to carry Russian crude in the region due to security concerns, two of the sources said. The vessel shortage has delayed cargo loadings.
Kazakh crude is seen as carrying lower risks, making it easier to charter tankers. Ukraine has pledged to halt strikes on tankers carrying non-Russian crude from Black Sea ports, the Financial Times reported.
The two sources said Kazakh producers support the arrangement because exports through the Black Sea are currently more profitable than shipments from the Baltic. Most KEBCO crude is sold to Mediterranean refiners or supplied to European refineries owned by Kazakhstan's state oil company KazMunayGas.
