Major global oil traders plan to reduce oil and fuel purchases from Russian state-owned oil companies as early as May 15 to avoid violating EU sanctions on Russia. inform Reuters, citing sources.
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Trading companies are restricting purchases from Russia’s energy group Rosneft in an effort to enforce EU sanctions aimed at restricting Russia’s access to the international financial system.
The wording of EU sanctions on oil purchases from Rosneft or Gazprom Neft also poses difficulties for traders. They are included in EU legislation as “strictly necessary” to ensure Europe’s energy security.
Such wording should not apply to the purchase and sale of Russian oil by intermediaries.
As a result, traders are reducing purchases to ensure compliance by 15 May, when EU restrictions come into force.
Trafigura’s edition confirmed that sales will continue to decline from May 15.
Oil refineries in Europe are processing less and less Russian oil. This has already eroded Russian exports, although purchases from India and Turkey have partially offset the shortfall. Sales to China also continue.
According to the shipment plan, Rosneft and Gazprom Neft had 29 million barrels in April, which is more than 40% of total crude oil exports from Russia’s western ports in April.
Read also: Indian Oil suspends Russian oil purchases after Baiden-Modi talks
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