Greek shipowners return to Russian oil market due to falling prices

Greek shippers are returning to the Russian oil market as prices fall below the G7 “price ceiling.”

Shipowners in Greece are returning to the Russian Urals market, Reuters reports.

The drop in oil prices below the “price ceiling” of $60/barrel allows them to provide transport and insurance services while complying with sanctions.

Most Western shipowners have refrained from working with Russian oil since December 2022, as relatively high oil prices keep Urals at or above the price ceiling. Since then, tankers operated by companies from countries that have not joined the price cap policy have become the main shippers of Russian oil.

In April, a number of Greek shipowners, including Minerva Marine, Dynacom and TMS Tankers, made available vessels to deliver Russian oil, according to three shipping and trade sources. The companies were not present in the Russian oil market last year, the sources said.

All three shippers did not respond to Reuters’ requests for comment.

A plunge in global oil prices this spring due to global trade tensions has pushed Urals prices well below $60 per barrel free-on-board at Russian ports, allowing Western shipowners to return to working with Russian crude.

As of April 24, Urals shipments from the Baltic ports and Novorossiysk were valued at just above $50 per barrel on a free-on-board basis, Reuters estimated. According to LSEG and shipping and trade sources, 15 of the 25 tankers loaded with Urals from the ports of Primorsk, Ust-Luga and Novorossiysk in April were operated by Greek shippers.

USM previously reported that Russia and Iran were forming a port alliance to circumvent sanctions.