European tankers chased Russian oil: the EU forgot about the price ceiling

Despite the rise in Russian oil prices and the established EU ceiling on raw material prices from Tankers of European companies have returned to transportation from Russian ports. The share of Greek shipowners has grown to 20%. European tankers earn huge money on Russian exports.

The 276-meter Sikinos I tanker travels through the South China Sea and transports up to 157 thousand tons of Russian oil. Washington temporarily released raw materials from Russia from sanctions and sanctions oil goes not only to India and China. Sikinos I is scheduled to arrive in Taiwan on May 3, which will expand the list of raw material consumers from Russia after the start of the Iranian war, which has already given Asian countries a shortage of oil.

According to AIS vessels, tankers with Russian raw materials are also sent to Kenya and Indonesia. And new directions are not the only innovation for Russian exports.

Sikinos I is owned and operated by one of the largest Greek shipping companies. And he is only one of six dozen European vessels that have returned to transporting Russian oil, even despite the continuing EU sanctions.

Thus, the EU price ceiling remains at $ 44.7 per thousand cubic meters of Russian oil, while Asian consumers buy it around $ 100. Obviously, in the new realities of the energy markets, which were hit by the Iranian war, it is not so important if tankers massively carry Russian oil to consumers. The EU itself refused to impose a ban on the transportation of Russian oil in the new 20th package of sanctions and postponed it until consultations with the G7 allies.

AIS data of vessels say that at the end of last week there were at least 59 tankers on the routes of transportation of Russian oil, which belong to 12 companies from Greece. Together, the vessels can carry 58.5 million barrels. About as much monthly at India buys Russia. The total cost of oil that Greek tankers can carry at a time is now more than $5.5 billion.

Traditionally, Aframax and Suezmax tankers, which can carry from 105 to 159 thousand tons of oil, have returned to transportation. The vessels serve the Baltic and Black Sea ports of Russia. And in April, Greek shipowners may account for up to 20% of all Russian oil exports by sea.

In 2023, the share of European tankers reached a third, but 20% is enough to play a significant role in Russia's exports and providing energy markets.

Another question is that the Greeks have never been altruists and carry Russian oil under the conditions of sanctions, as it brings them fabulous earnings. According to Reuters, in March, the cost of a monthly flight to India from the Baltic ports was $ 22-$ 23 million for an Aframax—class tanker, and in April - $ 15 million. This is much more expensive than in February, when prices were at the level of $ 10-$ 12 million, and many times higher if we take previous years, when even under sanctions freight cost $ 5-$ 8 million.

As experts noted by EADaily earlier, companies and intermediaries prefer European courts, since together with them they receive both insurance and legal status. It is not for nothing that the head of Sovcomflot, Igor Tonkovidov, complained in an interview with Interfax that carriers from the EU create unfair competition.

At the same time, their participation in transportation raises the old question — who earns from the export of Russian oil. After all, in Russian ports it can also be issued according to the current EU price ceiling of $ 44.7 per barrel, and the difference will already be with shipowners and intermediaries, whose services will make up the rest of the price paid by Indian, Chinese and other companies.

According to the Ministry of Economic Development of Russia, the average cost of Urals for March was $ 77 per barrel, whereas in March and most of April, according to Reuters, it was bought at the port of receipt for more than $ 100.