Exclusive: Kazakhstan to seek damages from Transneft for tainted oil loaded in Ust-Luga

Exclusive: Kazakhstan to seek damages from Transneft for tainted oil loaded in Ust-Luga

FILE PHOTO: An oil storage tank of Russian oil pipeline monopoly Transneft is pictured at the Baltic Sea port of Ust-Luga, Russia February 26, 2018. REUTERS/Vladimir Soldatkin/File Photo

NUR-SULTAN/MOSCOW (Reuters) – Kazakh oil flowing via Russia to be loaded on tankers at the Baltic Sea port of Ust-Luga has been contaminated and Kazakhstan plans to seek compensation from Russian pipeline monopoly Transneft, a senior Kazakh energy official said.

Six tankers with 598,000 tonnes of tainted oil were loaded at Ust-Luga, Deputy Energy and Mineral Resources Minister Aset Magaulov told Reuters.

“First, companies that sold the oil will talk to buyers about a discount, then … (Kazakh pipeline operator) Kaztransoil will have separate talks with Transneft,” Magaulov said.

Russia’s oil export flows have been disrupted since April when high levels of organic chloride were found in crude pumped via the Druzhba pipeline to the Baltic port of Ust-Luga and other European countries.

Reporting by Mariya Gordeyeva in NUR-SULTAN and Alla Afanasyeva in MOSCOW; Writing by Katya Golubkova; Editing by Dale Hudson

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