Kazakhstan continues shipping oil through Russian ports

ASTANA. July 24 (Interfax) - Shipments of Kazakh oil through Russian seaports were not suspended after the Russian president issued a new decree, the country's Energy Ministry told Interfax.

"As of today, shipments of Kazakh oil through the seaports of the Russian Federation have not been suspended," the Kazakh ministry said.

"KazTransOil is holding negotiations with Neva Pipeline Company on the situation at the Ust-Luga port, in connection with the introduction of additional measures to increase the security of transport infrastructure," the ministry said.

Reuters previously reported, citing sources, that oil exports from Kazakhstan via the port of Novorossiysk on the Black Sea had been suspended owing to the Russian authorities' latest demand that foreign vessels obtain permission from the country's security services to enter ports. Implementing this requirement temporarily prohibits foreign oil tankers from loading at Russian ports on the Black Sea, which effectively blocks oil exports from Kazakhstan, the ministry said.

Kazakhstan exports oil through Black Sea ports via the Caspian Pipeline Consortium (CPC) system that connects oilfields in western Kazakhstan and Russian oilfields on the Caspian shelf to the marine terminal in Novorossiysk. The route is 1,511 km long. The system is the main export route for Kazakh oil, accounting for more than 80% of the volumes pumped through the pipeline from Kazakhstan.