A third of Russian oil exports at risk as Greek shippers refuse to carry Urals crude

Greek tanker companies, which the Brookings Institution has estimated ship one-third of Russia's seaborne oil exports from its western ports, have begun refusing to work with Russian oil producers because of sanctions imposed by US President Donald Trump.

Source: The Moscow Times, an independent Amsterdam-based news outlet

Details: Greek shipowners exported between 10 and 20 million barrels of Russian oil per month this year, but they have now reduced their involvement to the minimum.

The transportation of Urals crude is now mostly being handled by the shadow fleet. Freight rates have risen sharply since sanctions were tightened.

Sources told Reuters that it now costs over US$8 million to transport a single Urals shipment from Primorsk or Ust-Luga to Indian ports, up from US$7 million at the start of the month. Some carriers have raised prices to US$10 million per voyage.

On 22 October, US President Donald Trump imposed sanctions on Rosneft and Lukoil – Russia's two largest oil companies, responsible for half of the country's production and every second barrel exported. The European Union simultaneously blacklisted a further 117 shadow fleet tankers under its 19th sanctions package, bringing the total to 558.

Background:

• It was reported earlier that the US had imposed measures targeting two of Russia's largest oil companies, Rosneft and Lukoil, and their subsidiaries.
• On 23 October, the EU also formally adopted its 19th Russia sanctions package.

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