Ukraine halts Black Sea tanker strikes at Vance’s request

Ukraine has paused drone strikes on oil tankers using Russia's Black Sea port of Novorossiysk after US Vice President JD Vance asked President Volodymyr Zelenskyy to stop the attacks during a phone call on July 31, the Financial Times reported on Wednesday.reuters+1

Washington grew alarmed that Ukraine was destabilizing oil markets and harming American companies by targeting tankers carrying crude piped from Kazakhstan to the Caspian Pipeline Consortium terminal at the port. US energy giants Chevron ↗ 0.56% and ExxonMobil Exxon Mobil Corporation ↘ 0.71% own stakes in the CPC, which is Kazakhstan's main oil export route.jpost+2

Terms of the Agreement

Ukrainian officials told the Financial Times that Kyiv agreed not to target CPC infrastructure or non-Russian vessels, provided the ships are not under Ukrainian sanctions and are not carrying Russian oil or cargo. "We very carefully listen to our American partners," one senior Ukrainian official told the newspaper.aa+2

A US official confirmed to the Financial Times that the administration had warned Ukraine to stop attacking non-Russian vessels in the Black Sea, describing the CPC as a "vital conduit of Kazakhstan-origin energy for European markets that serves as an alternative to Russian energy supplies".jpost

Oil Market Disruption

Black Sea drone attacks took out as much as a fifth of CPC oil loadings in July, as the war spilled over to hit sales by Kazakhstan and Western oil majors. Kazakhstan cut production by 14 percent in July from June, according to sources cited by the Financial Times. On July 17, a ship chartered by Exxon was hit in a Ukrainian strike while waiting to load at the port.english.nv+2

The Wall Street Journal News Corp ↗ 0.77% had reported on July 25 that the Trump administration warned Ukraine against attacking non-Russian vessels, after Chevron CEO Mike Wirth discussed protecting the company's Kazakhstan operations with administration officials.english.nv

Broader Context

People familiar with the call told the Financial Times that Zelenskyy agreed to halt the strikes in part because he is still seeking a US license to produce Patriot missiles, which President Trump publicly pledged earlier this summer. Zelenskyy reportedly stressed to Vance that Patriot missiles and other air defense interceptors were a "top priority" for Ukraine.jpost

Ukraine has continued strikes on other Russian energy infrastructure. In August alone, Ukrainian drones have hit three Russian oil refineries, an airfield, and a warehouse belonging to Russian shipping giant Wildberries.jpost