The transfer of Russia’s flagship Urals oil at sea — a key part of the nation’s petroleum supply chain since the war in Ukraine — has all but ground to a halt.
(Bloomberg) — The transfer of Russia’s flagship Urals oil at sea — a key part of the nation’s petroleum supply chain since the war in Ukraine — has all but ground to a halt.
There has been just one so-called ship-to-ship transfer of the nation’s top export grade so far in July — a tiny switch of about 140,000 barrels — according to tanker-tracking data observed by Bloomberg. There were 14 last month.
Officials from two shipping firms, both of which have transported some Russian oil in the past year, said a mix of regulatory scrutiny, less-expensive freight, and the fact that Russia doesn’t need to keep ice-strengthened ships near its western ports during summer were likely contributors to the decrease.
There was a similar pause in September last year before the activity picked up again over winter. The practice came to a full stop at Ceuta, a Spanish exclave off the coast of Morocco, in April.
Back in May, the European Union banned ships from its ports if they are involved in illegal ship-to-ship transfers. Not all ship-to-ship transfers, including of Russian oil, break EU rules, especially if the cargo cost less than $60 a barrel — a level that Urals has recently exceeded.
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