Facts: Russian oil exports for 136 billion in January
Russia’s exports of oil products – not least to China and India – rose to 8.2 million barrels in January. This was before the EU embargo and the G7 price ceiling came into effect. In terms of volume, exports of Russian crude oil increased by almost 300,000 barrels per day compared to December, despite shipments to the EU falling by 450,000 barrels per day.
Russia’s income from oil exports during the month is estimated to have amounted to 13 billion dollars (136 billion kroner). It is slightly more than in December, but 36 percent lower than in January 2022, according to one report from the OECD countries’ energy advisory body IEA.
The world market price of oil has certainly fallen from peaks above $120 a barrel since last summer. But compared to January last year, the oil price is slightly higher this year. This means that the fall in income from last year is about large discounts on Russian oil on the world market.
It is difficult to establish that the so-called “ghost ships” used in the transshipments actually commit sanctions violations. Greek authorities see the possibility of intervention as limited.
— But this is something you do to avoid being discovered. This is done so that it will not be possible to trace the Russian oil, says Christian Kopfer.
Hundreds of ships carry Russian oil
EU sanctions against Russia for the Ukraine war state that companies in the EU have a duty to investigate the origin of oil cargoes and ensure that any Russian oil has not been bought at prices above the price ceiling that the G7 countries have introduced. In addition, it is the responsibility of authorities in EU countries to carry out checks and supervision of the activities of the companies involved.
Pumping oil from one vessel to another often requires, among other things, special systems with fenders and in some cases pilots – services that are usually purchased from neighboring countries. But where the oil service companies that assist outside of Greece come from is unclear.
The explanation from the Greek side that they have not stopped or carried out checks on the transshipments is that they take place outside the country’s sea border. Similar transfers of Russian oil cargoes between ships have also taken place off Ceuta, the Spanish enclave in North Africa, according to Bloomberg.
According to oil trading group Trafigura, a total of around 600 tankers are currently used in a so-called ghost fleet around the world to ship Russian oil.
Russia has decided to cut its oil production by 500,000 barrels per day, as punishment for the latest round of EU sanctions against the oil industry.
— Although this can also be seen as a result of the Russians finding it difficult to get a market for their oil. I rather believe in the latter, says Kopfer.
EU sanctions against Dubai shipping company
Since December, the EU has had an embargo against Russian crude oil and since February also an import ban on refined oil products from Russia – with the exception of Russian oil that is delivered via onshore pipelines to Eastern Europe.
In order to reduce Russia’s opportunities to circumvent sanctions, the EU has in its tenth sanctions package – clubbed in connection with the anniversary of the full-scale Russian attack on Ukraine – put the Dubai-based shipping company Sun Ship Management on the sanctions list. This means frozen assets and a ban on financing the shipping company.
Among other things, Sun Ship manages 92 cargo ships that were previously owned directly by the state-owned Russian shipping company Sovcomflot, which in turn has been on Western sanctions lists since February 2022.
According to previous decisions, EU sanctions also prohibit the sale of insurance and financial services to Russian oil shipments, unless it can be proven that the Russian oil was purchased at prices below the G7 countries’ price ceiling. Since December 3, the ceiling has been 60 dollars per barrel.