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Ukraine war: Who is buying Russian crude oil and who has stopped
Here is the response by countries regarding purchases of Russian oil since the war in Ukraine started on Feb. 24 and how companies have acted.
Countries’ responses
Australia, Britain, Canada and the United States have imposed outright bans on Russian oil purchases but the 27 members of the European Union have not been able to agree on the embargo. The bloc is leaning toward a ban on imports of Russian oil by the end of the year as part of a sixth package of sanctions against Russia.
Germany, the EU’s largest economy, said it would be able to weather an EU embargo on Russian oil imports by the end of this year even though a stoppage could result in shortages. Hungary said it still opposed any European Union embargo on Russian oil and gas imports.
Many refiners in Europe, however, have stopped buying Russian crude voluntarily, or promised to do so when their long-term contracts expire. Major global trading houses are also planning to reduce Russian crude and fuel purchases from May 15.
As a result, Russian diesel exports from the Baltic port of Primorsk, a key supply source for Europe, were set to drop by more than 30% in May. China and India, which have refused to condemn Russia’s actions, continue to buy Russian crude.
Current buyers
Bharat Petroleum
Indian state-run refiner Bharat Petroleum Corp Ltd has bought 2 million barrels of Russian Urals for May loading from trader Trafigura, two people familiar with the purchase said. The company regularly buys Russian Urals for its 310,000 barrels per day (bpd) Kochi refinery in southern India.
Hindustan Petroleum
India’s state refiner bought 2 million barrels of Russian Urals for May loading, according to trading sources last week.
Indian Oil Corp
India’s top refiner has bought 6 million barrels of Urals since Feb. 24 and has a supply contract with Rosneft for up to 15 million barrels of Russian crude in 2022.
However, the refiner, which also buys crude on behalf of its Chennai Petroleum subsidiary, has excluded several high-sulphur crude grades, including Urals, from its latest tender, according to trading sources.
ISAB
Italy’s largest refinery, owned by Lukoil-controlled Swiss-based Litasco SA, has been forced to source nearly all of its crude oil from its Russian owner because international banks are no longer providing it with credit.
The Italian government is considering temporary nationalisation of ISAB as one of its options if sanctions are imposed on Russian oil, two government sources told Reuters.
Mangalore Refinery and Petrochemicals
The state-run Indian refiner has bought 1 million barrels of Russian Urals crude for May loading via a tender from a European trader, a rare purchase driven by the discount offered
Nayara Energy
The Indian private refiner, part-owned by Rosneft, has purchased Russian oil after a gap of a year, buying about 1.8 million barrels of Urals from Trafigura
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