Despite sanctions, Russia finds new "connection" to bring oil to the world

Data from analytics firm Kpler shows that Russia's crude oil supply increased by 50% this past spring, despite sanctions from the Group of Seven (G7).

'Mặc kệ' lệnh trừng phạt, Nga tìm được 'mối' mới đưa dầu vươn ra thế giới

Nearly 75% of Moscow's seaborne crude oil shipments in August were delivered without Western insurance. (Source: cepr.org)

The above information was published by the Financial Times (UK) on September 24.

Accordingly, the G7, the European Union (EU) and Australia agreed to impose a price ceiling of 60 USD/barrel on Russian oil in December 2022 to punish the country for its special military campaign in Ukraine.

However, Financial Times quoted estimates from the Kiev School of Economics (KSE) showing that oil revenue is still increasing thanks to continuously rising crude oil prices and Moscow reducing discounts on exported oil.

Under the price cap on Russian oil, the West continues to provide services such as shipping or insurance only when Russian oil is sold below the $60/barrel cap. But Russia has built up a fleet of tankers that can operate without Western insurance or other services.

Nearly 75% of Moscow’s seaborne crude in August was delivered without Western insurance, according to a Financial Times analysis of shipping and insurance records. This has helped drive higher prices for Russian oil, with the price of Russia’s Urals crude oil exports rising above $60 a barrel.

* According to Reuters news agency, recently, Russian oil has found a new market in the Middle East.

Russia has shifted crude exports to China, India and Türkiye in the past year, while Moscow’s oil companies have also found new customers in Brazil, Sri Lanka and Pakistan.

Russian oil company Lukoil and independent producer CenGeo have sold CPC Blend light sour crude to the United Arab Emirates' national oil company ADNOC. The order marks the first time the UAE has purchased a crude blend from Russia.

In early August, Lukoil delivered 123,000 tonnes of CPC Blend on the Delta Hellas tanker to the Ruwais terminal. CPC Blend is crude oil transported via a common pipeline through the Caspian Pipeline Consortium pipeline system.

The UAE has also traditionally imported different grades of oil for its domestic refineries to take full advantage of price differences.

Unlike Western countries, the UAE has not imposed sanctions on Russia since it began its military campaign in Ukraine in February 2022.

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