Ukraine Agrees Not to Attack Non-Russian Tankers, Bloomberg Reports

Ukraine has reportedly agreed to refrain from attacking non-Russian tankers, a move brokered by the United States aimed at stabilizing maritime trade in the region.

The agreement, detailed by Bloomberg, involves Ukraine establishing contact points for commercial carriers to exchange information and ensure shipping safety. This arrangement is seen as a potentially significant step to boost oil flows, which have been hampered by recent attacks on several vessels near the Caspian Pipeline Consortium (CPC) terminal.

The CPC terminal plays a vital role in Kazakhstan's oil exports, as the country lacks sufficient capacity for alternative export routes. Approximately 2% of the world's crude oil is exported via the CPC terminal, and European refineries rely heavily on oil imports from this region.

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This agreement, reached during a meeting of high-ranking U.S. and Ukrainian officials, is a potentially important step towards increasing oil flows in the region after recent attacks on several ships near the Caspian Pipeline Consortium terminal reduced activity.

Under the U.S.-mediated deal, Ukraine has committed to not targeting the CPC's infrastructure or tankers heading to the terminal, provided they are not Russian-affiliated. Kyiv has issued guidelines to shipping companies specifying which vessels are permissible targets. Tankers are reportedly safe unless Ukraine has imposed sanctions on them, they are carrying Russian oil or cargo, or they are owned by Russian individuals or entities.

However, Bloomberg notes uncertainty about whether this agreement will be sufficient to normalize oil flows or reassure cargo carriers concerned about attacks. Previous agreements to protect transit cargo have proven inadequate, with some companies whose ships were on lists provided to Ukraine still suffering from Ukrainian strikes.

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It is unclear whether this agreement will be enough to normalize oil flows or reassure cargo carriers fearful of attacks, as previous agreements to protect transit cargo have proven insufficient. Some companies that provided Ukraine with lists of ships that should not be attacked have still been hit by Ukrainian strikes.