Oil firm Shell and power dealer Vitol have been accused of prolonging the struggle in Ukraine by exploiting a “loophole” within the EU sanctions regime to carry merchandise derived from Russian oil into Europe by way of Turkey.
Oleg Ustenko, Ukrainian president Volodymyr Zelenskiy’s financial adviser, has urged the power firms to decide to a deadline to halt the commerce of a “Russian-origin oil merchandise” to cut back Vladimir Putin’s struggle coffers, the Guardian can reveal.
The EU applied a ban on importing seaborne Russian crude oil on 5 December – the identical day as a G7 value cap on Russian seaborne exports – and the ban was prolonged to subtle merchandise equivalent to diesel and gasoline oil on 5 February.
Nonetheless, refineries in India and Turkey have ramped up their imports from Russia for the reason that begin of the struggle and have been accused of offering a “again door” for Russian oil exports to be refined, re-badged and exported world wide.
Evaluation of information from commodity tracker Kpler by non-profit group International Witness discovered that Shell had imported greater than 600,000 barrels of refined merchandise into the Netherlands from Turkish refineries identified to import Russian oil since 5 December.
Whereas it can’t be proved whether or not the merchandise have been positively derived from Russian crude, Turkish refineries are importing huge portions from Russia which may then be instantly refined or blended with crude from different nations.
The International Witness research confirmed that in 2022 Turkey imported 143m barrels of crude from Russia, a 50% improve from 2021. One refinery dominated that commerce – Star in Aliaga, on Turkey’s Mediterranean coast.
The refinery is owned by the Turkish division of Azerbaijan’s state oil agency Socar. It took greater than 60m barrels of crude from Russia in 2022, 73% of its imports.
The Izmit and Aliaga refineries, owned by Tüpraş, the most important refinery firm in Turkey, additionally dealt with Russian-origin crude.
Vitol, the world’s largest impartial power dealer, sourced 2.77m barrels from the Star and Izmit refineries for supply to Latvia, Cyprus and the Netherlands for the reason that begin of the struggle in Ukraine, the evaluation discovered.
Shell introduced its “intent to withdraw from its involvement in all Russian hydrocarbons” final March shortly after the outbreak of struggle in Ukraine.
In a letter to new Shell chief govt Wael Sawan, seen by the Guardian, Ustenko acknowledged Shell had not damaged any sanctions however mentioned importing merchandise from Turkish refineries “awash” with Russian oil “flies within the face of Shell’s pledge to withdraw from its involvement in Russian crude oil and petroleum merchandise, and exploits a loophole within the EU sanctions regime”.
He added: “If western firms preserve shopping for Russian-derived refined merchandise, there’ll no incentive for refineries world wide to cease importing Russian crude.”
Shell introduced document annual income of £32bn earlier this month, aided by a spike in commodity costs linked to the struggle in Ukraine.
Vitol mentioned in April 2022 that it “intends to stop buying and selling Russian origin crude oil and product”.
“We name on Vitol to decide to a date by which it would honour its personal pledge to stop buying and selling Russian-origin oil merchandise,” Ostenko mentioned. The Swiss-based multinational has additionally seen document income in the course of the power disaster.
Signal as much as Enterprise Right this moment
Get set for the working day – we’ll level you to all of the enterprise information and evaluation you want each morning
Privateness Discover: Newsletters might comprise data about charities, on-line adverts, and content material funded by outdoors events. For extra data see our Privateness Coverage. We use Google reCaptcha to guard our web site and the Google Privateness Coverage and Phrases of Service apply.
after e-newsletter promotion
Information reveals that the EU imported 5m barrels of refined merchandise from Turkey since 5 December, and 20m barrels from refineries which deal with Russian oil throughout 2022. Star alone offered 17m barrels of refined merchandise into the EU in 2022.
Europe continues to import about 250,000 barrels a day through pipeline from Russia because it makes an attempt to steadiness hurting the Russian financial system with considerations over provides and gasoline costs.
A Shell spokesperson mentioned: “We stay totally dedicated to our pledge and have stopped purchases of Russian origin crude, in addition to cargos of refined merchandise exported from Russia.
“It’s a choice we made with conviction, rigorously aligned with authorities steerage and in compliance with sanctions, which don’t exclude buying merchandise refined from Russian crude in third nations the place that is legally permitted.”
Vitol mentioned: “Product exported from Turkish refineries just isn’t Russian origin, based on all worldwide laws.”
It mentioned its volumes of Russian crude oil and merchandise traded have fallen by greater than 90% for the reason that first quarter of 2022 and “volumes at the moment are negligible”.
“We proceed with our coverage of minimising purchases of Russian origin merchandise, in full compliance with all relevant laws and regulation in relation to sanctions,” Vitol mentioned, including that it continued to have a presence in Ukraine and supposed to put money into the nation long run.
Socar declined to remark. Tüpraş didn’t reply to requests for remark.
