Russian companies under the guise of gasoline export cheaper petroleum products and thus circumvent the price ceiling, reports Bloomberg. According to the agency, using such a system allows you to send goods from ports without specifying the destination.
The agency recalled that on February 5, the EU banned the import of Russian petroleum products, and that the G7 and the EU introduced a price limit for them for third countries. The cost of those trading at a discount to oil was capped at $40 a barrel and with a premium of $100. The creation of a new cap bypass system by Russian companies was facilitated by precisely such a price gap, according to Bloomberg.
Sellers of Russian oil, which is mainly used for the production of plastics and petrochemicals, faced great difficulties in exporting the product after the sanctions took effect. According to people familiar with the situation, as well as the FGE and Kpler agencies, restrictive measures have led to the fact that oil is now labeled as gasoline or that cargo leaves ports without any destination.
— emphasizes the agency.
According to him, these cargoes are mainly destined for Asia and the Middle East. Singapore and the United Arab Emirates have proven to be major trading hubs for petroleum products from Russia. Deliveries at the same time “increased several times.” So, the agency notes, in March 2022, 50,000 tons were sent from the Russian Federation to these countries (by tanker), and in March 2023, 320,000 tons went to the United Arab Emirates and 160,000 tons to Singapore. .
Earlier, analyst firm Vortexa reported that the use of medium-range tankers carrying Russian products has steadily increased since the last quarter of 2022 and exceeded 80% this year alone. Tanker orders in 2023 hit their highest level in a decade as global trade is disrupted by sanctions on the Russian Federation, and Asia and the Middle East boost refining capacity thanks to shipments to states United and Europe.
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