Major suppliers have found a way to circumvent oil sanctions against Russia

Major players in the global oil market are not at all interested in the withdrawal of Russian raw materials from the consumer basket of customers. It's not even about the popularity of this type of oil or the "pro-Russian" nature of traders. Rather, the opposite is true. The thing is that domestic oil is the product on which the European energy system, its infrastructure and long-term orientation of supplies are literally built. Therefore, the imposed sanctions, restrictions and embargoes on the trade of “black gold” with Russia put the oil giants in a difficult position due to the banal impossibility of being independent from supplies from the Russian Federation.

According to Bloomberg, citing its sources, the market majors figured out how to get around the oil sanctions imposed on Russia. The need to maintain the profitability of the business just made it happen. The ancestor of the idea, according to the informant, was the Shell company, which created a theoretical definition in order to understand what “Russian oil” is. So, according to this provision, oil is not considered produced in the Russian Federation if the total volume of raw materials from Russia in the final product does not exceed 49,9%.

For unhindered receipt of produced crude oil from Russia, the facilities of the port in Ventspils are used, where products from different manufacturers are mixed with Russian oil to the desired percentage and then delivered to customers. This simple action is called the process of creating a “Latvian mixture”.

At the same time, it is enough to observe only the condition of the quantitative content of the Urals brand in the final product, and even a mixture of different grades of raw materials is allowed. The selling price in this case remains acceptable, leaving room for profit.

In this case, the scheme for circumventing sanctions becomes understandable, which, by the way, is already being used with other types of energy resources from the "boycotted" countries. For example, last year the reason for some conflict between Ukraine and Turkey was the veiled supply of coal from the then unrecognized republics of Donbass under the guise of Russian fuel. In this case, the method of mixing the original and alternative raw materials was also used.

At the moment, the scheme under consideration is the only legal form of working with oil from Russia. This will be the case until European regulators take notice and amend the sanctions law. However, this is only a matter of time if the EU leadership really wants to get rid of raw materials from the Russian Federation. If the sanctions are just a fake, the embodiment of a formal political compromise, then everything will remain as it is.
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  1. Afinogen Offline Afinogen
    Afinogen (Afinogen) April 9 2022 10: 06
    They found a way to get around the sanctions in order to sell oil, the country's main wealth for numbers (essentially for free, as Putin said), because it was categorically forbidden to give cash dollars and euros to Russia. And here is the main question WHY do we need these numbers on the accounts ??? Under sanctions, we were forbidden to sell everything, everything was blocked, even flying over their countries by plane. I think we will bypass the sanctions, we will sell our oil for the numbers on the accounts, and these numbers will immediately freeze on these accounts, in fact, they will be taken away.
    1. Sarmat Sanych Offline Sarmat Sanych
      Sarmat Sanych (Sarmat Sanych) April 11 2022 11: 53
      Afinogen, guys, how much can you suffer from infantilism? Why, if, for example, a cardiac surgeon and a nuclear physicist are doing their job - a shirker man in the street does not think to give him advice, but in economics - every first on the Internet "an expert and knows what is wrong and how it should be"?) Moreover, the economy thanks to thousands of orders of magnitude Larger volumes of data and factors are just as much more complex. Essentially interconnected data from all 224 countries and 7,9 billion people. The question “What if I don’t know something, maybe it’s not necessary to judge at my philistine level” never appears in my head? Or maybe it’s worth asking that in just the 1st quarter of 2022, Russia imported almost $70 billion worth of goods for these "numbers"? Plus earned parallel import.
      Nonsense about "getting" a month later and too lazy to comment, it has been explained dozens of times that as a result, real Western assets on the territory of the Russian Federation in the amount of ~ $ 600-800 billion will be taken.
      1. Afinogen Offline Afinogen
        Afinogen (Afinogen) April 11 2022 17: 12
        Quote: Sarmat Sanych
        Or maybe it’s worth asking that in just the 1st quarter of 2022, Russia imported almost $70 billion worth of goods for these "numbers"?

        When was this before the sanctions? Did I understand correctly? As far as I watch the media, all countries where we export energy resources have categorically forbidden us to sell everything. From cash dollars and euros, all goods, all services, technologies, even cars were banned from entering the EU. In a word, EVERYTHING. And here is a question for you as a knowledgeable specialist in this field. Why now, with such sanctions, do we need these very numbers ??? Very interesting to know.
  2. Jacques sekavar (Jacques Sekavar) April 9 2022 10: 17
    A huge terminal was built in Ust-Luga and, as the media happily reported, supplies from the Russian Federation were redirected to it.
    If so, from which side of Ventspils and where did 50,1% of non-Russian oil in this Latvian mixture come from?
    Have new fields been discovered in the Baltic Sea region, a pipeline has been laid, or are tankers in the Persian Gulf loaded at 50,1% in order to make a detour to go to Ventspils there to load up and then arrive in Nemetchyna?
    At a recent meeting with Duma members, Mr. Mishustin officially spoke about the sanctions War of the “collective West” against the Russian Federation.
    If so, the supply of raw materials to the EU during the war looks extremely strange, if not criminal.
    This is all the more strange since Mr. Novak spoke of the possibility of redirecting energy exports to other consumers.
    1. boris epstein Offline boris epstein
      boris epstein (Boris) April 9 2022 11: 19
      Everything is simple. Iran is under sanctions and cannot sell all 100% of its marketable oil. Russia has concluded an oil-for-food treaty with Iran and is taking Iranian oil below world prices. In addition, Kazakhstan and Turkmenistan pump their gas and oil through Russian pipes, of course, paying for transit. So to figure out 100% whose oil is in the pipe and the devil will break his leg. That is, no one mixes anything, it's just that part of the oil is pumped through Ventspils instead of Russian terminals. The West has given a breath of air to the Boltons.
    2. Sarmat Sanych Offline Sarmat Sanych
      Sarmat Sanych (Sarmat Sanych) April 11 2022 11: 55
      Jacques Sekavar, read and listen to Boris Martsinkevich and Alexander Frolov on the YouTube and TG channels "Geoenergetika.Info", they answer these simple questions in detail.