MOSCOW/LONDON/NEW DELHI : A Liberian-flagged oil tanker set sail in May from Russia's Ust-Luga port carrying crude on behalf of a little-known trading company based in Hong Kong. Before the ship had even reached its destination in India, the cargo changed hands.
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. 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.
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. 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'.
The official also said Washington was unconcerned that sanctions were resulting in more trades in currencies other than the dollar - after a rise in the use of yuan and UAE dirham to settle Russian oil transactions as Moscow finds itself shut out from international banks.
From March to June, the top traders who bought oil from Rosneft, Surgutneftegaz and Gazprom Neft included Dubai-based Petroruss, Hong Kong registered Guron Trading, Bellatrix Energy and Covart Energy, Dubai-registered Voliton, Demex Trading, Nestor Trading, Orion Energy and Singapore-headquartered Patera, according to the five traders, shipping data and company registers.