Russian federation uses small firms to circumvent sanctions

The number of small companies that transport russian oil on decommissioned vessels has increased on the world market.

“A lot of new companies are being created or smaller companies are growing significantly. We see that all the vessels that would normally have been scrapped are being bought and used to transport this fuel. Frankly speaking, this is unacceptable in today’s world. Oil from russia is delivered to remote regions of Asia on outdated ships. This increases the risk of transport errors and accidents,” said Trafigura CEO Jeremy Weir.

Russian seaborne exports of crude oil to Asia rose about 31% year-on-year to an average of 1.6 million bpd in the first 10 months of this year. In particular, at the expense of China and India. The supply of oil to China from russian federation increased by 36% (to 780,000 b/d), India’s purchase of Rosneft jumped to 450,000 b/d in the same period compared to 90,000 barrels per day last year.

USM recently wrote that russian federation was building up a “shadow” fleet to export oil at the current level.