A Russian appeals court in Krasnodar on Monday overturned a decision by a lower court that ordered the suspension of most of Kazakhstan’s crude oil exports from a Russian port on the Black Sea.
Last week, a Russian court ordered the Caspian Pipeline Consortium (CPC), which operates the main export route for two-thirds of Kazakhstan’s crude oil, to suspend operations for 30 days, citing environmental violations.
The export takes place from the Russian port of Novorossiysk on the Black Sea. While the port is in Russia, 90 percent of CPC exports are Kazakhstan crude and only 10 percent Russian oil.
The 1,500km CPC pipeline from the massive Kazakh oil fields to Novorossiysk moves more than two-thirds of all Kazakhstan’s export oil along with crude oil from Russian fields, including those in the Caspian region, CPC says. The consortium said in response to the court’s ruling last week that it is “acting within the legal framework of the Russian Federation and is compelled to carry out the court’s ruling”.
The Krasnodar court today lifted CPC’s business suspension for 30 days and fined the consortium $3,195 (200,000 Russian rubles), the consortium said in a statement.
For reference, CPC said that “immediate suspension of its activities could lead to irreversible consequences for the operational process, the emergence and development of an unfavorable and uncontrollable process in a technical facility, including its destruction, as the process requirements for oil transportation do not allow the immediate and simultaneous cessation of operation.”
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The Russian court’s ruling last week came days after Kazakhstan’s President Kassym-Jomart Tokayev offered the EU to buy more oil from Kazakhstan instead of Russia.
The Kazakh president “expressed his concern about the risks to global energy security and emphasized Kazakhstan’s willingness to use its hydrocarbon potential to stabilize the situation in the world and European markets,” the president’s website said in a telephone conversation. with the president. of the European Council, Charles Michel, last week.
By Tsvetana Paraskova for Oilprice.com
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