russia oil cap ignored

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Fraser921
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russia oil cap ignored

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Nearly 30 tankers with European connections left Russia’s Far East over two months carrying crude that may have breached the price cap, according to rights group Global Witness.

Western trading, shipping and insurance firms had connections to nearly half of the trades of ESPO crude that left the port of Kozmino after the European Union import ban on Russian crude began on 5 December, it said, adding that Greek shipowners were linked to one in five cargoes.
Global Witness said shipments with European involvement amounted to 20m barrels from 5 December 2022 to 31 January when it was priced at an average of $76 per barrel. That valued the oil at $1.5bn.

It said: “British and European companies are involved in the trade of Russian oil selling at $76 per barrel, in apparent breach of the cap.

“Our findings show how the cap’s opaque design allows Western companies to continue business as usual with little concern for penalties.”

Crude oil that left Russia’s Baltic ports fell below $60 per barrel after 5 December, according to New York-based Trading Economics, because of the impact of the ban and price cap. Russia was able to redirect the cargoes to other buyers, but only with a sharp discount.

However, oil shipped from the Far East was less affected by the ban and cap, and prices held up. ESPO crude is moved by pipeline from Russia’s Siberian oilfields to Kozmino, from where it is shipped, mainly in aframaxes, to Far Eastern markets, predominantly China.

Data from Refinitiv Eikon showed that the price never dropped below $68 over that period from Kozmino, according to Global Witness.
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