The oil products tanker Nord and a bulk carrier sail near the crude oil terminal Kozmino in Nakhodka Bay near the port city of Nakhodka, Russia, December 4, 2022. REUTERS/Tatiana Meel/File Photo
In a significant development, three prominent Greek shipping companies have ceased the transportation of Russian oil in recent weeks to evade U.S. sanctions targeting firms involved in carrying Russian oil, as reported by four traders and shipping data reviewed by Reuters. This cessation deals a blow to Russia, narrowing the pool of shipping firms available for transporting Russian oil to consumers in regions like Asia, Turkey, the Middle East, Africa, and South America. Despite this setback, traders noted that Moscow still retains a sufficient number of shipping firms for the time being.
Among the Greek shippers discontinuing the transportation of Russian oil are Minerva Marine, Thenamaris, and TMS Tankers, as disclosed by the four traders. While Thenamaris declined to comment on commercial matters, Minerva Marine and TMS Tankers did not respond to requests for comments. These firms, previously active in shipping Russian oil and fuels, began scaling down their involvement around September-October, according to the traders and shipping agent data obtained by Reuters. Notably, all three companies rejected requests for vessel services for loading Russian crude in November and beyond.
The withdrawal of Greek shippers from this trade aligns with the imposition of tighter U.S. sanctions on Russian oil shipments. In October, the U.S. imposed initial sanctions on tanker owners in Turkey and the United Arab Emirates involved in carrying Russian oil above the G7’s designated price cap of $60 per barrel. Last week, further sanctions were imposed on three additional ships. The G7 countries had introduced the price cap in late 2022 to limit Russian export revenues, allowing Western firms to provide shipping and insurance services as long as the oil was sold below the specified threshold.
Despite the challenges posed by these sanctions, Russia has managed to cope by relying on its shipping company Sovcomflot and numerous lesser-known shipping firms registered in various locations, including the UAE, India, Hong Kong, Seychelles, and Ghana, as indicated by traders and shipping data. These vessels bear flags from Liberia to the Cook Islands, forming what is colloquially known as the “dark fleet” — shippers moving oil from sanctioned regions like Russia and Iran, not covered by Western insurance.
However, the altered trade dynamics are evident as Russian oil now takes 8-10 weeks to reach customers in Asia, compared to the two weeks before sanctions when oil was primarily sold in Europe. This increased transit time necessitates more tankers for the trade. While Russia currently appears to manage with alternative shipping companies, the situation underscores the evolving challenges and adjustments in the global oil transportation landscape.
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