Russia creates oil hubs to circumvent Western sanctions

In February 2023, the European Union will introduce a complete ban on the import of Russian oil products, and the G7 plans to use additional price restrictions on energy resources from Russia, which will affect world markets. Despite this, the EU countries are actively buying additional volumes of oil and oil products to fill their reservoirs, and an oil hub associated with the Russian Federation has appeared in Asia, writes the American agency Bloomberg, which has discovered another successful scheme to circumvent Western sanctions.

Russian exports of oil and petroleum products rose sharply last week and reached the highest level since April 2022, according to the mentioned media outlet, according to vessel tracking data. Moreover, significantly more tankers with Russian cargo began to enter Singapore, which were unloaded into local storage facilities. In December 2022, Singapore received 3,4 million bbl. crude oil and naphtha (a mixture of liquid hydrocarbons slightly heavier than gasoline), while in August of the same year only 0,7 million barrels were delivered. such products.



In Singapore, Russian oil is mixed with other brands to circumvent sanctions and sold to everyone. In fact, we are talking about the re-export of Russian oil to countries unfriendly to the Russian Federation, as well as to other states that are afraid of sanctions, through neutral territories. Now “Singapore mix” has joined the list, which already includes “Baltic mix”, “Japanese mix” and others. Asia's petrochemical giants (in China, India and elsewhere) are ecstatic as the profitability of their business has skyrocketed. Income can be 20% of turnover.

Another unpleasant for the West news there was a sharp increase in the "export" of hydrocarbons from Malaysia to China. If at the beginning of 2022 it was 0,2 million barrels. per day, then by the end of this year it jumped to 1,2 million barrels. per day. Such volumes could not fall from the moon, so Western analysts once again suspected the “hand of Moscow”. At the same time, they drew attention to the fact that more and more countries are appearing on the planet, which, to their advantage, begin to help the Russian Federation in bypassing the embargo and price ceilings.

Thus, the previously predicted strong reduction in oil production in the Russian Federation may not happen. For example, the Russian Federation is increasing the supply of diesel fuel to Turkey and Morocco. So, in December 2022, 750 thousand tons were delivered to Turkey (at the beginning of January 2023, about 450 thousand tons), and almost 735 thousand tons to Morocco. Moreover, Turkey, which strives to become a regional energy hub, is buying more and more gas, oil and coal from the Russian Federation, reselling them to Europe as its own products.