Biden's order doesn't ban dealing in CPC Kazakh crude oil - U.S. embassy to Kazakhstan

NUR-SULTAN. March 10 (Interfax) - U.S. President Joe Biden's executive order banning the import of Russian oil, liquefied natural gas (LNG) and coal to the United States does not prohibit dealing in Kazakh crude oil of the Caspian Pipeline Consortium (CPC), the U.S. embassy to Kazakhstan said in a statement.

Biden signed an executive order on March 8 of this year, banning the import of Russian oil, LNG and coal to the U.S. over the events in Ukraine.

"This order does not prohibit dealing in Kazakhstani crude oil from the Caspian Pipeline Consortium (CPC) because distribution systems such as those within the CPC can segregate various sources of crude oil, allowing crude oil that is not of Russian Federation origin to be marked and loaded separately," the embassy said.

The import ban applies to the import of certain products of Russian origin to the U.S. and excludes imports that are not of Russian origin, even if such items transit through or depart from the Russia, it said.

"We continue to underscore that our sanctions are targeted at Russia's economy and designed to mitigate to the extent possible their impact on other economies. The United States remains committed to partnering with Kazakhstan on a wide range of issues, as we have for over 30 years," the embassy said.

The CPC is the main export route for Kazakhstan's oil, accounting for more than 80% of the volumes pumped through the pipeline. After the completion of its enlargement in 2018, the pipeline has the capacity to carry 67 million tonnes of oil per year.

The shareholders of the CPC are: Russia (24% managed by Transneft , 7% on the books) - 31%, Kazakhstan (represented by Kazmunaigaz - 19% and Kazakhstan Pipeline Ventures LLC - 1.75%) - 20.75%, Chevron Caspian Pipeline Consortium Company - 15%, LUKARCO B.V. - 12.5%, Mobil Caspian Pipeline Company - 7.5%, Rosneft-Shell Caspian Ventures Limited - 7.5%, BG Overseas Holding Limited - 2%, Eni International N.A. N.V. - 2%, and Oryx Caspian Pipeline LLC - 1.75%.