Page 11 - FSUOGM Week 49 2022

FSUOGM POLICY FSUOGM

Turkey defends checks on oil tankers,

Western leaders seek resolution

EUROPE OIL tankers continue to queue up in Turkish (CPC) pipeline through Russia and is sold as
waters, with Turkey’s maritime authority saying Moscow’s flagship Urals blend, which could
The issue could be on December 8 that it would continue to block explain why tankers carrying Kazakh crude
connected with the fact the passage of ships without appropriate insur- are facing extra scrutiny. Kazakhstan launched
that Kazakh crude is ance letters, describing the checks as “routine plans in June to create its own separate blend,
still marketed as Urals procedure.” Kazakhstan Export Blend Crude Oil (KEBCO),
oil. The shipping delays follow the EU and G7’s to distinguish its supplies from Russian volumes,
introduction of a price cap on Russian seaborne partly to avoid the hefty discount to Brent that
oil supplies on December 5, prohibiting com- Urals now trades at due to sanctions and reduced
panies within their jurisdictions from insuring demand in the West.
tankers carrying Russian crude unless it is sold Likewise, the European Commission has
at no more than $60 per barrel. The UK, the US insisted that there is no connection with the oil
and the EU are in talks with Ankara to resolve the price cap, as there is a 45-day wind-down period
issue affecting traffic through the Bosphorus and starting on December 5 for insurers and shipping
Dardanelles straits linking the Black and Medi- companies to comply.
terranean seas. Moscow has also expressed concern about the
The deputy secretary of the US Treasury, blockage.
Wally Adeyemo, told Turkish Deputy Foreign “We are aware of this situation. Of course
Minister Sedat Onal on December 7 that the it causes us concern from the point of view
price cap only applied to oil originating from of the interests of our operators,” Russian
Russia and “does not necessitate additional Deputy Foreign Minister Alexander Grushko
checks on ships passing through Turkish terri- said on December 7. “This problem is being
torial waters.” But according to reports, many discussed with transport and insurance com-
tankers that have been held up this week were panies. After all, insurance companies insure,
carrying Kazakh rather than Russian oil. not the state. If the problem is not solved, of
Notably, the majority of Kazakh oil is course, there will be involvement on the polit-
exported via the Caspian Pipeline Consortium ical level.” ™

Week 49 12•December•2022 www. NEWSBASE .com P11