Ahead of full sanctions, European tanker owners rush to transport Russian oil

PRAGUE – Owner tanker transport Russian crude oil more anticipating energy sanctions against Moscow begins to take effect in December 2022, next. Since the Russo-Ukrainian War broke out in February, Western countries have pledged to wean themselves off from crude oil coming from Moscow.

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The looming sanctions have raised concerns among processors and shipowners Europe will be blacklisted for dealing with Russian gasoline. Meanwhile Asian shipments have experienced a rapid spike.

China nearly doubled Russia’s crude consumption to an average of 1.13 million bpd in June, from 670,000 bpd in February, according to electricity information supplier Vortexa. India took in about a million bpd as of the end of last month, from around zero in the first two months of this year.

Greek tanker owners, who manage the 3rd largest fleet worldwide, moved about half of Russia’s crude volumes in May and June, according to brokerage data. Lloyd’s Listing Intelligence estimates that over the past two months, Greek-operated vessels made 151 calls at Russian ports in the Black and Baltic seas.

This is an increase compared to the previous year’s interval, which recorded 89 calls. Greek tankers also sail as far as Siberia, for the conventional protection of Chinese and Russian shipowners.

Legend Kriti, owned and operated by Avin Worldwide, arrived July 12 at the port of Laizhou in China after lifting crude from Kozmino in Russian Siberia, according to information from supplier MarineTraffic. Avin did not return a request for comment, as reported by the Wall Street Journal.

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Meanwhile, European Union (EU) sanctions will begin to take effect on December 5 regarding a ban on Russian oil shipments to Europe. Shipping outside the continent by tanker operators is not prohibited, but the ships will not be able to get insurance coverage, making any voyage unlawful under maritime regulations worldwide.

Excessive oil demand after the invasion of Ukraine has pushed shipping costs for the medium-sized Aframax tanker to $40,000 a day, as opposed to $10,000 in January, the transport broker said.

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