Politics 2024-04-15T05:09:19+03:00
Ukrainian news
Tanker owners en mass refuse to transport Russian oil due to sanctions – media

Tanker owners en mass refuse to transport Russian oil due to sanctions – media

Russia, sanctions, russian, oil, tanker, refuse, Owner


Owners of oil tankers are en mass refusing to transport Russian oil because of the EU oil embargo, which is coming into force these days. As a result, prices for sea transportation of raw materials from the Russian Federation increased 1.5 times, writes Bloomberg.

Those who are still willing to ship Russian oil demand a higher risk premium. So, if earlier the freight rate of a vessel for supplying oil from the Baltic Sea to India was USD 9-11.5 million, now it may increase to USD 15-20 million (USD 20 per barrel), shipbrokers told the agency.

The increase in the shipment price reflects the problems that Russian oil carriers will face after December 5, when EU sanctions on Russian oil will come into effect. For example, some of Greece's largest tanker owners will stop transporting Russian oil.

Fewer available vessels and the need to divert Russian oil from traditional buyers in Europe to new ones in Asia and the Middle East are driving up rates.

"The increase in the cost of freight greatly affects the cost of Russian Urals oil. Its price has already fallen by almost 30% since the beginning of November - twice as much as that of the North Sea brand Brent. The cost of barrels, when shipped from the ports of Novorossiysk and Primorsky, is up to USD 52 - the level of the end of 2020, as the few remaining buyers began to demand an increase in discounts to almost 40%. At the same time, the full cost of production in the Russian Federation, including taxes, is just about USD 50 per barrel," said Dmytro Polovyi, the director of Investments of Lokoinvest Asset Management.

As a result, budget revenues from oil exports have been falling, hitting new lows since the start of the war, with oil export duty collections holding below USD 120 million for the third week in a row, despite exceeding USD 150 million every week in late September.


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