9 Mar 2022 11:36

Sanctions on oil imports do not extend to CPC - U.S. Treasury Dept

MOSCOW. March 9 (Interfax) - The U.S. executive order banning imports and new investments will not affect Caspian Pipeline Consortium (CPC) operations, the U.S. Treasury Department said in a statement on its website.

"Distribution systems such as those within the CPC can segregate various sources of crude oil, allowing crude oil that is not of Russian origin to be marketed and loaded separately. The importation prohibition of E.O. of March 8, 2022 applies to the import of certain products of Russian origin to the United States and excludes imports that are not of Russian origin, even if such items transit through or depart from Russia," the statement reads.

As reported, on March 8, U.S. President Joe Biden signed a decree banning the import of Russian oil, LNG and coal.

The CPC is the main export route for Kazakh oil, accounting for more than 80% of the volumes pumped through the pipeline. After the completion of an expansion project in 2018, the capacity of the pipeline is 67 million tonnes of fuel per year.

CPC's shareholders are Russia with 31% represented by Transneft with 24% and CPC Company with 7%; Kazakhstan with 20.75% (represented by KazMunayGaz with 19% and Kazakhstan Pipeline Ventures LLC with 1.75%); Chevron Caspian Pipeline Consortium Company with 15%; Lukarco B.V. with 12.5%; Mobil Caspian Pipeline Company with 7.5%; Rosneft-Shell Caspian Ventures Limited with 7.5%; BG Overseas Holding Limited with 2%; Eni International N.A. N.V. with 2%; and Oryx Caspian Pipeline LLC with 1.75%.