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IPFS News Link • Oil

Tanker Companies Race To Ship Russian Oil Ahead Of New Sanctions

• Zero Hedge

By Tsvetana Paraskova of OilPrice.com

Western sanctions have so far failed to crush Russia's oil exports as Moscow is redirecting crude to its more than willing Asian buyers, China and India.  European vessel owners, especially private Greek operators, are moving a lot of the Russian oil in the months before the EU ban on seaborne Russian oil imports kicks in at the end of this year. Greek tanker owners have increased their exposure to Russian oil shipping in the past two months as they race to profit from the higher demand for heavily discounted Russian oil in China and India. 

Once EU sanctions on seaborne imports of Russian oil take effect this December, Greek tanker operators will have to stop shipping Russian oil. A much bigger blow to Russian oil exports that will have dramatic consequences on the global oil tanker market and oil prices comes from provision number two in the sixth sanctions package - EU operators will be prohibited from insuring and financing the marine transportation of Russian oil to third countries. 


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