Russia uses Chinese supertankers to circumvent sanctions
16.01.2023 - 13:10
At least 4 Chinese supertankers deliver russian Urals oil to China due to the refusal of Western companies to insure raw materials from russian federation.
Due to Western sanctions on russian oil, the aggressor country quickly redirected the export of raw materials from Europe to Asia. However, the Rosneft price cap, introduced in December by the G7 countries, still prohibits insuring cargoes of russian fuel unless they are sold for less than $60.
So, in order to circumvent sanctions, russian federation is forced to use VLCCs that belong to China. Russian federation is transshipping the Urals from its ice-class tankers to the supertankers Lauren II, Monica S, Catalina 7 and Natalina 7. All Panamanian-flagged vessels are bound for China, Reuters reports citing Eikon data.
It is noted that the Lauren II is owned by the Chinese company Maisie Ltd, the tanker Catalina 7 is owned by the Hong Kong company Canes Venatici Ltd, and the Natalina 7 is owned by the Hong Kong-based Astrid Menks Ltd. The vessel Monica S belongs to the Chinese Gabrielle Ltd. In total, from December 22 to January 23, Chinese VLCCs carrying Rosneft made five voyages to China and India.
Long flights, low commodity prices and record high freight rates have reduced the terrorist nation’s profits, but the use of supertankers on Asian routes could significantly reduce export costs.
The head of a Chinese firm involved in the supply estimated that in 2023, 18 supertankers and another 16 Aframax-sized vessels would be needed to transport Rosneft. This number of tankers is enough to transport 15 million tons per year or about 10% of the total exports of the Urals.
“Given that Urals prices are well below the ceiling price, buying Urals is essentially legal,” commented an executive at a Chinese supply firm.
At the same time, India will buy oil wherever it can secure the lowest price, Indian Oil Minister Hardeep Singh Puri said. Sources in the industry report that Indian oil refiners “knocked out” a discount of 15-20 US dollars per barrel for russian oil.
