In particular, Indian oil refineries no longer accept Russian tankers. And the accumulation of Russian diesel fuel in floating storage facilities is the highest since at least 2017. Buyers are avoiding this fuel due to sanctions.
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The Russian oil export machine that finances the Kremlin’s war in Ukraine is finally feeling the impact of sanctions, Bloomberg reports.
< >Indian oil refiners – Moscow's second-biggest customers after China after the 2022 invasion – are no longer accepting tankers owned by Russia's largest state-owned shipping company Sovcomflot due to the risk posed by sanctions.
Additionally, October, the United States included 40 individual Russian oil tankers on its list. Not a single sanctioned ship has been able to pick up cargo since it was placed on the US Treasury Department's sanctions list.
Meanwhile, Ukraine has begun blowing up Russian oil refineries, although it is unclear how much support there is for this strategy in Washington.
“We are definitely seeing increased US sanctions pressure on both Russian crude oil and exports,” Greg Brew said. , an analyst at Eurasia Group in New York
Despite this, Russia may still attract a so-called “shadow fleet” of ships assembled shortly after the 2022 invasion – often old ships without proper insurance and with uncertain ownership – to carry out your deliveries. By some estimates, there are around 600 such ships operating alongside Greek tankers that continue to serve trade under the G-7 price cap. At the same time, the cost of delivering Russian oil is enormous. Shipping cargo from the Baltic Sea to China costs about $14.50 per barrel, according to Argus Media.
Another setback for Moscow was problems with the sale of refined fuel. Russian diesel fuel is being accumulated in floating storage facilities. The volume of these savings is the highest since at least 2017. Buyers are avoiding this fuel due to sanctions.