Trump administration warns Ukraine over Black Sea tanker strikes

The Trump administration formally warned Ukraine on Wednesday, July 22, to stop attacking non-Russian vessels in the Black Sea, after drone strikes hit four tankers near the Russian port of Novorossiysk that were loading oil produced in Kazakhstan, according to The Wall Street Journal News Corp ↗ 0.52%.wsj+2

The diplomatic intervention came after Chevron CEO Mike Wirth and other oil industry executives met with senior administration officials this week to discuss protecting their operations in Kazakhstan, where Chevron is a major stakeholder in the Tengiz oil field and holds a 15 percent stake in the Caspian Pipeline Consortium.tengrinews+1

Drone Strikes Disrupt Global Oil Supply

The CPC marine terminal near Novorossiysk handles nearly two percent of the world's daily oil supply, transporting crude from landlocked Kazakhstan to export markets. On July 19, drones struck two tankers — the Liberian-flagged Asia and the Marshall Islands-flagged Nissos Ios — while they were loading at the terminal. The Asia was carrying oil from Tengizchevroil, in which Chevron is a major shareholder.spglobal+1

Earlier in July, a Chevron-chartered tanker called Yasa Polaris was also hit by a drone near the CPC terminal on July 7, though Reuters Thomson Reuters Corporation ↗ 1.02% reported the vessel was empty and the crew was safe. S&P Global ↘ 0.30% reported that CPC loading operations were disrupted again on July 20 after a fourth tanker was attacked.reuters+1

Kazakhstan Cuts Production as Exports Stall

The attacks forced Kazakhstan to reduce oil production after CPC suspended crude loadings, leaving the country with insufficient storage capacity. Kazakhstan's foreign ministry condemned the strikes as "an unacceptable encroachment on the country's economic interests".themoscowtimes+1

ExxonMobil Exxon Mobil Corporation ↘ 0.12%, which holds a 7.5 percent stake in CPC through an affiliate, also has operations at risk. The disruption to supply pushed Brent crude prices up approximately two percent on July 21, reaching $91 per barrel.tengrinews

The warning marks the second time the Trump administration has cautioned Ukraine over strikes affecting American energy interests near Novorossiysk. In February, Ukrainian Ambassador Olga Stefanishyna publicly confirmed the US had communicated concerns about strikes impacting American investments in Kazakhstan, telling reporters: "We received a communication from the State Department advising us to avoid targeting American interests".cnn