European energy traders are continuing to be major buyers of refined oil products from Russia, according to recent customs data. Vitol and Gunvor, two of the world’s largest energy traders, are reportedly among the top ten buyers of Russian refined oil products, such as petrol and diesel. Despite their pledge to reduce business with the sanctions-hit country, both companies have remained significant buyers.
The Financial Times analyzed export records filed with Russian customs in the first four months of 2023, revealing that Gunvor was the eighth-largest buyer by value, shipping a million tons of petroleum products worth about $540 million. Vitol, on the other hand, was the tenth-largest buyer, shipping around 600,000 tons worth about $400 million.
The data reviewed by the outlet shows that a total of 50 companies exported a combined $16 billion worth of refined petroleum from Russia during the first four months of the year. However, trading in Russian refined fuels is not prohibited under Western sanctions as long as traders comply with restrictions.
In December 2022, the European Union (EU), G7 nations, and their allies introduced a collective ban on Russian seaborne oil exports, along with a price cap of $60 per barrel. Additionally, another embargo banning almost all imports of refined Russian oil, as well as introducing price caps on diesel and other petroleum products, came into force on February 5.
Both Vitol and Gunvor have stated that they have stopped trading in Russian oil, but they confirmed they are still regular buyers of refined fuels from the sanctioned country. However, they dispute the accuracy of the customs data reported by the FT. Gunvor claims that its own records show that the company purchased just over 700,000 tons during the stated period, with a value of about $330 million. Vitol also argues that the customs declarations do not match its internal figures but did not provide its own data. The company explains that Russian customs records are sometimes filed after cargoes leave the country, meaning that Vitol shipments from December, for example, may have been recorded for January.
Both companies emphasize that their exports of refined Russian petroleum products comply with regulations. The FT also notes that the other eight biggest buyers are a mixture of Russian-controlled traders and recently established entities in the United Arab Emirates, Hong Kong, or Singapore.
In conclusion, despite their pledge to reduce business with Russia, European energy traders Vitol and Gunvor have continued to be significant buyers of refined oil products from the country. The customs data reviewed by the Financial Times shows that these companies, along with others, are exporting billions of dollars worth of Russian petroleum products. While trading in Russian refined fuels is not prohibited under Western sanctions, there are restrictions that traders must comply with. Vitol and Gunvor dispute the accuracy of the customs data but maintain that their exports comply with regulations.
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