Ukrainian President Volodymyr Zelensky halted drone strikes on oil tankers using Russia’s Novorossiysk port following a request from U.S. Vice President JD Vance during a July 31 call, according to multiple reports.
Ukraine has not conducted any strikes on tankers bound for the Caspian Pipeline Consortium (CPC) terminal at Novorossiysk since the request, Ukrainian officials confirmed to the Financial Times. The pause applies to non-Russian vessels not subject to Ukrainian sanctions and not transporting Russian cargo. Chevron and ExxonMobil—both U.S. energy firms with stakes in Kazakhstan’s oil sector—operate infrastructure linked to the CPC terminal, which serves as a key export route for Kazakhstani crude to European markets.
Ukraine’s recent strikes on Russian energy infrastructure—including a reported drone and missile attack on the Novorossiysk naval base on August 12—have been framed by Kyiv as efforts to deprive Russia of revenue to fund its military. However, the U.S. administration has expressed concern that such attacks were disrupting global oil markets and harming American economic interests, prompting Vance’s intervention.
U.S. officials cited CPC’s role as an alternative to Russian energy supplies when warning Ukraine to cease targeting non-Russian vessels and CPC infrastructure. A U.S. official told Reuters that the administration views the terminal as a “vital conduit of Kazakhstan-origin energy for European markets.” The CPC terminal has been a “regular part of the conversation” between U.S., Ukrainian, and Kazakh officials, according to a senior Ukrainian official quoted by the Financial Times.
Ukraine’s drone campaign had intensified in July, with attacks on tankers near Novorossiysk reducing CPC oil loadings by up to 20% in the month, per four sources cited by Reuters. Kazakhstan’s oil production reportedly dropped 14% in July compared to June, though the extent to which Ukrainian strikes contributed to this decline remains unclear. The CPC terminal, which handles roughly 1.2 million barrels per day, has faced repeated disruptions since the war began.
Ukrainian officials emphasized compliance with U.S. requests. A senior Ukrainian official told the Financial Times: “We very carefully listen to our American partners,” adding that Kyiv had established “mechanisms” to respond to Vance’s demand. The U.S. State Department and Vance’s office did not immediately respond to requests for comment.
Background: U.S.-Ukraine tensions over energy strikes
In February 2024, the U.S. State Department flagged concerns over Ukrainian strikes on Black Sea tankers, with Ambassador Olga Stefanishyna stating that Washington’s objections were tied to “American economic interest” rather than military targets. At the time, the U.S. clarified that its stance did not extend to Russian military or energy infrastructure, which Ukraine has continued to target.
The latest developments follow reports that the Trump administration warned Ukraine to “cease and desist” from attacking non-Russian vessels and CPC facilities, framing the terminal as critical to reducing Europe’s reliance on Russian energy. The CPC is majority-owned by Russian state-controlled companies, with Western firms holding minority stakes.
Impact on global oil markets
The CPC terminal’s role in transporting Kazakhstani crude—primarily from the Tengiz oilfield, where Chevron (50% stake) and ExxonMobil (25% stake) are major investors—has made it a focal point for U.S. economic interests. Analysts note that disruptions to the terminal could increase pressure on global oil prices, particularly in Europe, where alternative supply routes remain limited.
Ukraine’s strategic shift
While Ukraine has paused strikes on non-Russian tankers, it has escalated attacks on Russian military and energy targets elsewhere. Zelensky’s August 12 announcement of a drone and missile strike on the Novorossiysk naval base—300 kilometers from the front line—underscored Kyiv’s ongoing campaign to weaken Russia’s logistical and financial capacity. The Ukrainian military described the operation as targeting the “last major stronghold of the Russian fleet in the Black Sea.”
No immediate response from U.S. or Russian officials
Neither the U.S. State Department nor Vance’s office provided on-the-record comments in response to inquiries from Reuters. The Kremlin has not publicly addressed Ukraine’s pause in strikes on non-Russian tankers, though Russian officials have repeatedly condemned Ukrainian drone and missile attacks on its Black Sea ports as “terrorist” acts aimed at civilian infrastructure.