Hoot of the Day: Russian Oil Gets to US Via Sanction Loophole

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Upcoming sanctions on Russian oil are set to be "really disruptive" for energy markets if European nations fail to set a cap on prices, analysts warned.

The 27 countries of the European Union agreed in June to ban the purchase of Russian crude oil from Dec. 5. In practical terms, the EU — together with the United States, Japan, Canada and the U.K. — want to drastically cut Russia's oil revenues in a bid to drain the Kremlin's war chest following its invasion of Ukraine.

However, concerns that a complete ban would send crude prices soaring led the G-7 to consider setting a cap on the amount it will pay for Russian oil.
...
A price limit would see G-7 nations buy Russian oil at a lower price, in an effort to reduce Russia's oil income without raising crude prices across the globe.
...
... Officials at the Kremlin have repeatedly said a price cap is anti-competitive and they will not sell their oil to countries that have implemented the cap.

They're hoping that other major buyers — such as India and China — won't agree to the limit and so will continue to purchase Russian oil.
...
Click to expand...

www.cnbc.com

Russian oil sanctions are about to kick in. And they could disrupt markets in a big way

Upcoming sanctions on Russian oil are set to be "really disruptive" for energy markets if European nations fail to set a cap on prices, analysts warned.
www.cnbc.com www.cnbc.com
 
The EU is still buying Russian oil in spite of the sanctions. How? They sell it to the Greek shippers. Then it goes through a circuitous route with changing flags on ships and ports of call before arriving at a much higher price than if they trucked, or pipelined it direct.

Almost as washed as US money sent to Ukraine, then FTX'd to the D party con.
 
their oil blockade has been beaten soundly - from every direction -- it's funny as hell
 
Same thing when the families set up the garbage business in NY & NJ.
 
pmbug said:
Sanctions on Russian oil are supposed to take effect on December 5 (Monday). I just posted an article (post #6) talking about the issue.
Click to expand...
If Russian oil sanctions don't go into effect until this coming Monday, why when I do a quick search as to when Russian oil sanctions started, I get the following.


When were Russian oil sanctions imposed?

The United States, the United Kingdom, Canada, Australia, and the European Union (EU) quickly introduced an import ban on Russian crude and refined products after the invasion. The US banned all Russian oil and gas imports in March 2022.Sep 29, 2022

Google says the sanctions (outright ban) on purchasing Russian oil have been in effect for many Months now.
....or are these new sanctions the ones where they really mean it, this time?
 
EU sanctions, not USA sanctions
 
pmbug said:
EU sanctions, not USA sanctions
Click to expand...
From March 8th of this year.

Today, (March 8th 2022) President Biden will sign an Executive Order (E.O.) to ban the import of Russian oil, liquefied natural gas, and coal to the United States

www.whitehouse.gov

FACT SHEET: United States Bans Imports of Russian Oil, Liquefied Natural Gas, and Coal | The White House

Today, President Biden will sign an Executive Order (E.O.) to ban the import of Russian oil, liquefied natural gas, and coal to the United States – a
www.whitehouse.gov www.whitehouse.gov


From the EO:
Today’s Executive Order bans:

  • The importation into the United States of Russian crude oil and certain petroleum products, liquefied natural gas, and coal. Last year, the U.S. imported nearly 700,000 barrels per day of crude oil and refined petroleum products from Russia and this step will deprive Russia of billions of dollars in revenues from U.S. drivers and consumers annually.
 
@Joe King - you are posting about the USA sanctions. The EU sanctions were declared a while back, but set to take effect on Monday. Are you even reading what's been posted? See paragraph 2 of post 6.
 
pmbug said:
@Joe King - you are posting about the USA sanctions. The EU sanctions were declared a while back, but set to take effect on Monday. Are you even reading what's been posted? See paragraph 2 of post 6.
Click to expand...
This thread is about Russian oil still making it here to the US, is it not?

Thread title says that is what it is about.

Russian Oil Gets to US Via Sanction Loophole​

How can that be so, if Russian oil imports were banned in march?
 
My mistake. You quoted my post, so I thought you were responding to what I had posted.
 
The EU doesn't fart w/o the US being involved. The ruse is they're independent.
 
pmbug said:
My mistake. You quoted my post, so I thought you were responding to what I had posted.
Click to expand...
I was at the time. I had no idea that Eu hadn't done the same as the US had.
...but that still leaves the question of how, if Russian oil imports were already banned, that their oil was still making it here. Sounds as though it was a ban that included a wink and a nod.
 
Joe King said:
I was at the time. I had no idea that Eu hadn't done the same as the US had.
...but that still leaves the question of how, if Russian oil imports were already banned, that their oil was still making it here. Sounds as though it was a ban that included a wink and a nod.
Click to expand...

From the article in post #1:

1669949380701.png
 
So the sanction on oil was a buncha bs. All they did was a slight of hand move by refining the oil someplace else. Kinda like how we dealt with the ban on gain of function research. Ie: just do it somewhere else and call it good.
 
Joe King said:
So the sanction on oil was a buncha bs. All they did was a slight of hand move by refining the oil someplace else. Kinda like how we dealt with the ban on gain of function research. Ie: just do it somewhere else and call it good.
Click to expand...
Perhaps not. When the sanctions in the EU take effect on Dec 5th, none of that "refined in Italy" oil will be coming to the U.S.A. any longer. In fact, they say the Lukoil refinery in Italy may have to shut down since over 90% of the oil it has been refining comes from Russia and that will no longer be happening beginning the 5th of December.

Keep an eye on the price of gasoline at your local station and see if this has any impact here in the USA. Even if the volume coming from Italy isn't enough to dramatically raise the prices here, the situation may still be used as an excuse for retailers to raise the price.

As with most things, time will tell.
.
 
Unca Walt said:
Why are all the people running this world congenital idiots?
Click to expand...
In my opinion, they're not all idiots. But those folks face the wrath of the idiots. But then again, some would say I am a Russian bot or a Putin fanboy or some other nonsense.
:ROFLMAO:
 
sanctions against commodities = idiocy

india china others buy russian oil = less demand for non-sanctioned oil, but zero change on overall demand (price) to total market

market unaffected, functions as if the sanctions dont exist

it's all there in a single word -- commodity
 
...
Energy market participants remain wary about the European Union's sanctions on the purchases of the Kremlin's seaborne crude exports on Dec. 5, while the prospect of a G-7 price cap on Russian oil is another source of uncertainty.

The 27-nation EU bloc agreed in June to ban the purchase of Russian seaborne crude from Dec. 5 as part of a concerted effort to curtail the Kremlin's war chest following Moscow's invasion of Ukraine.

Concern that an outright ban on Russian crude imports could send oil prices soaring, however, prompted the G-7 to consider a price cap on the amount it will pay for Russian oil.

No formal agreement has yet been reached, although Reuters reported Thursday that EU governments had tentatively agreed to a $60 barrel price cap on Russian seaborne oil.
...
Click to expand...


So the EU sanctions/price caps are specific to seaborne crude? Pipeline crude is either addressed by a different sanctions package or not addressed at all (I haven't investigated to find out).
 
(farking clowns)

not my bold

The Black Market For Oil Is Booming | ZeroHedge

ZeroHedge - On a long enough timeline, the survival rate for everyone drops to zero
www.zerohedge.com www.zerohedge.com

  • Sanctions on key oil exporters have given rise to a lucrative black market for crude.
  • The EU embargo on Russian crude oil imports and the price cap on Russian crude are set to further increase illicit shipments of oil.
  • Russia is already thought to be amassing a “dark fleet” of tankers to ship its oil outside the price cap regime.
The sanctions on the oil exports of Venezuela and Iran, and now Russia, have given rise to a lucrative under-the-radar oil trade in which less scrupulous vessel owners, shipping firms, and traders continue to sell sanctioned oil to those willing to take the risk to buy it.
 
Buying sanctioned oil these days with the Fives Eyes global surveillance is playing with fire. Fuck around and find out I guess.
 

Complex Russian Price Cap Makes Maritime Visibility a Must​


PUBLISHED DEC 14, 2022 3:15 PM BY WINDWARD

Many commentators and analysts are speculating about the potential impact the Russian seaborne oil price cap will have on organizations and entities throughout the maritime ecosystem. With the December 5, 2022 deadline now upon us, the truth is that no one really knows. There are too many variables and unanswered questions.

Will Russia and Russian vessels cooperate with the price cap, or actively try to subvert it? And if an entity in India receives crude oil from Russia and a U.S. entity is interested in purchasing that oil, does the U.S. entity need to ask the Indian entity if the oil was price capped? Also, who is going to enforce adherence to the regulators’ set price?

These are just three examples of open issues. The way forward will depend on the resolution of the many unanswered questions that currently exist, as well as organizations’ respective appetites for risk. But one thing is clear: to even have a chance at compliance, organizations must be proactive in executing due diligence and detecting related deceptive shipping practices (DSPs

Full article here:
maritime-executive.com

Complex Russian Price Cap Makes Maritime Visibility a Must

Many commentators and analysts are speculating about the potential impact the Russian seaborne oil price cap will have on organizations and entities t...
maritime-executive.com maritime-executive.com
 
From the link:

The U.S. Treasury Department said late on Wednesday that shipments facing the G7's upcoming price cap on oil products such as diesel and gasoline from Russia will have a grace period to arrive at their destination.

www.marinelink.com

US Gives Grace Period to Cargoes Under Russia Oil Product Price Cap

The U.S. Treasury Department said late on Wednesday that shipments facing the G7's upcoming price cap on oil products such as diesel…
www.marinelink.com www.marinelink.com
 
Looks like Ghana is buying Russian oil with gold:
The first consignment of the Gold for Oil Policy by the government to stem the increasing depreciation of the cedi against the major currencies has arrived at the Tema Port and discharged into the receptacles of Bulk Oil Storage and Transportation Company (BOST), Graphic Online has gathered.

The 41,000 metric tonnes of the petroleum products delivered by SCF YENISEI would be sold by BOST to bulk distributing companies (BDCs) around Ghana, a source has told Graphic Online.
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Click to expand...


SCF YENISEI is a Russian tanker.
 

Is Singapore Laundering Russian Crude?​

By Elizabeth Low (Bloomberg) Demand is soaring for oil storage tanks in Singapore, in a sign that a flood of Russian fuel is being blended and re-exported globally.

Tank space in the city-state is being snapped up due to a rise in interest and profits from mixing cheap fuel supplies from Russia with shipments from other sources, according to an executive from a tank operator and a consultant who advises traders on the matter. That process can help to obscure the cargoes’ origins, they said.

More:
gcaptain.com

Is Singapore Laundering Russian Crude?

By Elizabeth Low (Bloomberg) Demand is soaring for oil storage tanks in Singapore, in a sign that a flood of Russian fuel is being blended and re-exported globally. Tank space in...
gcaptain.com gcaptain.com
 
gcaptain.com

Russian Crude Exports Flow to Asia

MOSCOW, Jan 30 (Reuters) – Asian markets are showing no let up in their demand for Russian oil, absorbing a big rise in seaborne exports of Urals crude this month and helping...
gcaptain.com gcaptain.com
 
From the link above:
...
The European Union has pledged to stop buying Russian oil via maritime routes from Dec. 5 as part of wider sanctions over Ukraine.

The Soviet-built Druzhba pipeline remains exempt from sanctions, but Germany's refineries in Leuna and Schwedt, connected to the pipeline, have not ordered any Russian crude for this year.

Transneft said in December that Kazakhstan's KazTransOil had requested 1.2 million tonnes of capacity on the Druzhba pipeline for 2023 to facilitate extra oil shipments to Germany.
Click to expand...

Looks like the sanctions applied by the west were never a complete shutout/shutdown measure. They are full of holes.
 
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