The Caspian Cabals investigation introduced collectively reporters from 27 information retailers to probe the Kremlin’s management and Western pursuits in a essential Russia-Kazakhstan oil pipeline, and the way its affect and affect unfold from Central Asia into Europe, the USA and past.
Journalists in additional than a dozen international locations lined matters starting from oil corporations overlooking corruption and problematic offers within the identify of revenue, to nationwide governments looking for to shore up oil provides whilst war-related sanctions loomed over Russia.
Listed below are a few of their tales:
Netherlands’ ‘poisonous and shaky’ relationship with Kazakh oil
Over the previous two years, oil imports from Kazakhstan into the Netherlands have elevated eightfold, in keeping with ICIJ’s Dutch media accomplice NRC, largely pushed by growing sanctions on Russian oil. However the relationship between the Netherlands and the Kazakh oil trade is “poisonous and shaky,” NRC present in its Caspian Cabals reporting.
The Netherlands has lengthy had a stake in Kazakhstan’s pure sources sector by way of Dutch vitality large Shell, which in 2023 made an virtually $1.5 billion revenue in Kazakhstan. NRC spoke with Shell workers and different locals who alleged widespread corruption within the Kazakhstan operations, from partnerships with problematic native corporations to fumbled social tasks leading to huge price overruns, and business tenders rife with suspect calls for and situations from native authorities.
“We regarded one another within the eye after we noticed a few of these contracts and stated, ‘In fact this can be a corrupt mess.’ I knew it, all people knew it,” one former Shell worker advised NRC of a contract linked to the corporate’s oil undertaking in Kashagan.
Shell declined to reply to questions for the investigation, however a spokesperson advised NRC and ICIJ that the corporate doesn’t tolerate bribery in any type.
Learn extra: Corruption, air pollution and repression: how Dutch corporations revenue from Kazakhstan’s poisonous oil trade (NRC)
Germany’s Kazakh-Russian balancing act
In Germany, the small Bavarian city of Burghausen is flourishing because of a strong native refinery that performs a pivotal position in processing crude for Germany’s petrochemical trade, in keeping with reporting by ICIJ’s German media companions Der Speigel and ZDF.
At the very least a few of that incoming oil comes from Kazakhstan by way of a 939-mile pipeline, managed by the Caspian Pipeline Consortium, that runs although that runs by way of Kazakhstan and Russia to the port of Novorossiysk on the Black Sea the place it’s loaded onto tankers sure for Trieste in Italy. From there, the crude travels by pipeline into Germany.
After invading Ukraine in 2022, Russia was subjected to varied embargoes and sanctions from authorities around the globe, and lots of international locations started to cut back or remove Russian oil imports — a key supply of funding for the battle. Nonetheless, after a profitable lobbying effort supported by Germany and different governments and business operations, the CPC was exempt from any sanctions or embargoes and the oil, ostensibly from Kazakhstan, continued to stream.
In accordance with the reporting by ZDF and Der Spiegel, whereas Germany could have stopped importing Russian oil, the nation’s ongoing use of Kazakh oil from the CPC signifies that the Russian authorities continues to profit from the commerce — by way of dividends paid to state pipeline firm Transneft, which owns a big stake within the CPC, and thru taxes paid by the CPC to the Russian authorities.
Regardless of this, Germany stays dedicated to importing oil from Kazakhstan each as a means to make sure constant provide, but additionally out of concern of pushing the Central Asian nation again into Russia’s arms, ZDF and Der Spiegel reported.
“Cooperation with Kazakhstan was and is necessary with a purpose to diversify our provide,” Michael Kellner, state secretary for Germany’s Ministry for Financial Affairs advised ZDF. “An embargo of Kazakh oil, alternatively, would drive the nation in Russia’s arms.”
Learn extra: Trotz Sanktionen: Deutschland füllt weiter Kreml-Kriegskasse (ZDF)
Burghausen: Wie die Kleinstadt in Bayern an importiertem Öl verdient – und Russland mit (Der Spiegel)
Cheaper Russian oil flows to India
Because the world’s third-largest client of crude oil, India depends upon imports to fulfill the majority of its necessities, in keeping with reporting by ICIJ’s Indian media accomplice The Indian Categorical.
Whereas solely about 10% of the oil flowing by way of the CPC pipeline is Russian, The Indian Categorical reported, its connection to India has grown considerably over the previous two years. Whereas a lot of the Kazakh crude is bought to Europe, India has emerged as the most important marketplace for CPC-Russia oil over the previous two years, following Russia’s invasion of Ukraine.
The rationale, in keeping with The Indian Categorical, possible comes down to cost: since early 2022, closely discounted Russian oil has turn out to be a less expensive choice for the ravenous Indian market.
“We purchase oil from many international locations and lots of corporations. As prospects, we will solely be certain that our offers are clear. What occurred or what could occur internally in a supplying firm or nation is one thing past our management and most frequently additionally past our data,” one oil trade supply in India advised the newspaper.
Learn extra: Earlier than Russia-Ukraine battle, Western oil corporations ‘reduce offers’ to favour Moscow’s allies (The Indian Categorical)
Extra tales from ICIJ’s media companions: