SOCAR suspended deliveries of Rosneft to the plant in Turkey

Azerbaijan’s state oil company SOCAR has suspended purchases of russian oil for its refinery in Turkey.

Turkish refineries, including SOCAR Star, increased purchases of russian oil after the russian invasion of Ukraine on February 24. Factories in Turkey have become more profitable partners for russian manufacturers than Asian refineries.

Turkey did not join the agreement on limiting Rosneft prices to $60/barrel, so russian companies could sell oil to the country without taking into account this limit.

But last month, russian flows to Turkey began to fall to their lowest level since February. Socar is currently reviewing the situation to stay within the limits of Western sanctions, Reuters reports. This may indicate that restrictions are starting to spread beyond the US and Europe.

Flows of russia’s main export grade, Urals, to Turkey were 170,000 barrels per day in November, compared with more than 300,000 barrels per month in August-October, according to Refinitiv Eikon vessel tracking data.

The Star refinery consumed only 73,000 barrels per day in November, compared with 170,000 barrels per day in the previous three months. The last batch of Rosneft for the Star plant was sent on November 20.

We will remind, on December 5, the decision of the Council of the EU to establish a price limit for Russian oil at the level of $60/barrel came into force. The G7 countries also joined the restrictions.