Russian Oil Trader Expands to Mexico to Market Fuels

A trading unit of Lukoil PJSC is launching a Mexico operation as the oil giant seeks new markets for Russian products under widespread sanction.

(Bloomberg) — A trading unit of Lukoil PJSC is launching a Mexico operation as the oil giant seeks new markets for Russian products under widespread sanction.

The Lukoil subsidiary hired oil products trader Yuri Carreno in Mexico City, according to people with knowledge of the situation. Carreno, who previously spent 25 years as a senior gasoline trader at Petroleos Mexicanos’s trading arm PMI, started in July, said the people, who asked not to be identified discussing internal matters.

Lukoil and Carreno didn’t return multiple requests for comment.

The expansion into Mexico, which is Latin America’s largest fuel importer, would open up a new market for Russian fuels that are under sanction by G-7 nations following Russia’s war in Ukraine. While Mexico has imported from Russia only once since the war began, Russian shipments have been making other inroads into Latin America. Brazil has been importing record volumes of diesel from the nation. Argentina, too, has been buying naphtha and diesel.

If successful, the effort could see Russia displace the US as Mexico’s top fuel supplier. The US currently supplies 90% of Mexico’s gasoline and diesel imports.

–With assistance from Amy Stillman and Archie Hunter.

(Corrects story from Sept. 6 to clarify that the Lukoil unit discussed is not Geneva-based Litasco SA.)

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