Sanctions create chaos in Russian oil trade, ships are denied – News
2 min read
Russian oil producers are delaying sales offers due to a shortage of buyers, while importers in Europe and Asia are rejecting Russian boats. Sanctions were imposed on Moscow for the war against Ukraine.
Following the Russian invasion of Ukraine last week, the West and many other countries moved swiftly to impose sanctions on Russian companies, banks and individuals. Moscow classifies its operations in the neighboring country as “special operations”.
Oil company Surgutneftegaz added 80,000 tons of oil to the March shipment schedule at the Black Sea port of Novorossiisk and delivered the goods in public supply, with traders saying previous attempts to sell the goods through concessions had failed.
“It will not be exported by sea in March. No one wants to buy, carry or store Russian oil. This is a big problem, ”said a Russian oil trader.
The Malaysian government has said an oil tanker with a Russian flag, targeted by US sanctions, could not enter the port of Kuala Linux, underscoring the global pressure to strangle Moscow-linked companies over the occupation of Ukraine.
Russia’s energy supply is not a direct target of sanctions, but there are growing concerns that oil and gas exports could be affected by the effects of restrictions on other sectors.
“They said there are no direct barriers to energy, but it is not possible to open a letter of credit for business activities,” said one trader.
Energy companies BP and Shell have given up billions of dollars in positions in Russia, while banks, airlines, automakers and other exporters have cut ties, sealed alliances and branded Moscow as unacceptable.
Russia’s pipeline monopoly Transneft plans to increase its oil supply from 35.7 million tonnes in February to 40.3 million tonnes through its network in March, the RIA news agency reported.
Transneft, which handles more than 80% of Russia’s total oil production, plans to increase exports to China via the Espo pipeline this month from 2.22 million tonnes in February to 2.48 million tonnes, the TASS news agency reported.
Copyright © Thompson Reuters.
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