Obscure traders ship
FROM PAGE B4
The new players have shipped at least half of Russia’s overall crude and refined products exports of 6-8 million barrels per day (bpd) on average this year, turning the little-known companies collectively into some of the world’s largest oil traders, according to Reuters calculations based on private information from the 10 trading sources and Eikon data.
The companies began appearing after Russia’s February 2022 invasion of Ukraine, which Moscow calls a special military operation, with as many as 30 middlemen involved in trades over the course of last year, according to the tally.
The network marks a major departure from the handful of well-established oil majors such as BP and Shell and top trading houses including Vitol, Glencore, Trafigura and Gunvor that handled Russian crude and oil products for decades.
There is no suggestion the trades break sanctions, although they may make it difficult for sanctions enforcement agencies in Europe and the United States to track Russian oil transactions and prices.
Earlier this month, Urals prices jumped above a price cap of $60 a barrel on Russian exports imposed by the Group of Seven nations, Australia and the European Union from December 5 that was intended to punish firms involved in any trade above that level.
When prices are above the cap, the rapidly changing trading network could make it hard to identify those involved in moving the oil, five traders involved in handling Russian oil said.
The reporting shows that in May, Russia, one of the world’s top three oil producers, supplied record volumes to China and India, which have not imposed sanctions on Moscow and became its leading buyers after sanctions by Europe, the United States and other powers limited their own purchases.
Neither Guron Trading or Bellatrix Energy, the company that originally chartered the Leopard I and bought the cargo from Russian oil company Rosneft, responded to requests for comment. Rosneft did not respond to questions.
The websites for Guron Trading and Bellatrix Energy appeared to have been taken down recently. Both were online prior to the companies being contacted by Reuters.
Along with the emergence of the new companies, once rare multiple trades while ships are at sea have become widespread, the five sources involved in Russian oil trading said. The sources described at least 10 such trades, which happen with little public documentation and aim to make Russia’s oil exports more difficult to track, they said.
One buyer of Russian oil likened the rise and fall of the new traders to the brief careers of TikTok stars, while another trader described a “kaleidoscope” of new players. In some cases, a single cargo will pass through at least three traders, the oil buyer said.
Under the previous system, oil cargoes were generally handled by one well-known trader from source to destination. Reuters could not establish the ultimate owners of the new trading companies.
The growing network of pop-up traders overlaps with a booming market for old oil tankers supplied by new companies to carry Russian oil that Western shippers are avoiding.
The new trading network and practices raise financial risks for Russian oil companies dealing with unknown entities with limited credit history. Some of the companies that emerged as major traders of Russian oil last year, such as Coral Energy and Everest Energy, have since exited the business.
Responding to questions from Reuters, both denied they left the trade because of sanctions risks. Everest said “it was a strategic business decision based on various factors specific to our company”. Coral said “we made a decision to source outside of Russia thanks to the diversified footprint in MENA region’.