Another reason for this decision may be the complicated sale of oil from the port of Novorossiysk. Traders are avoiding the Russian oil as international insurance companies are refusing to insure tankers loaded with the Russian oil due to international sanctions.
In general, Azerbaijani oil in the port of Novorossiysk is mixed in the Russian Urals. Since the Urals brand oil, which is diluted in the Azerbaijani one, is sold for almost $ 30 less than the market price, SOCAR is selling at a lower price than the cost of its oil. It should be noted that after the shutdown of the terminal in the port of Novorossiysk on March 22 due to the storm, the Kazakh oil supplies have also been significantly reduced in this direction.
Western sources claim the opposite - it was good weather in the Black Sea region on March 22 and the Russians deliberately damaged the terminal to prevent the Kazakh oil from entering the European market, which would make it easier for the West to give up the Russian oil.
Due to these circumstances, Kazakhstan had to reduce oil production at its two largest fields.