Greece becomes a hub for Russian oil

Increasing transshipment of Russian heating oil off the Greek coast leads to record levels.

The sanctions against Moscow are prompting traders to find new ways to export Russian oil via ship-to-ship (STS) cargoes, according to data from Refinitiv Eikon and sources.

Trade in Russian crude oil and oil products remains legal for now, as the European Union has yet to fully agree on a proposed embargo, but banking and other financial sanctions against Russia following the invasion of Ukraine on 24 February are making this trade increasingly difficult.

Almost 0.9 million tonnes of Russian fuel oil were delivered to Greece in April, about twice as much as in March, and new records could be set in May, according to data from Refinitiv. The Greek Energy Ministry declined to comment on the deal, which it said was carried out by private companies. According to traders, the fuel oil - a by-product of refining crude oil into lighter, cleaner products such as car fuels - is stored on board tankers and blended offshore and loaded for re-export via ship-to-ship transfer. Although it is not uncommon for fuel oil to be loaded off the Greek coast for export to other destinations, the scale is very high.

The tanker "Evridiki", which can load 130,000 tonnes, took on a Russian fuel oil cargo off Kalamata in mid-April and set off for the United Arab Emirates' oil hub in Fjairah. Russia has increased its fuel exports to this hub, with arrivals set to rise to around 2.5 million barrels according to data from oil analysis company Vortexa.

Another tanker, the "Okeanos", loaded heating oil by STS off Kalamata at the beginning of the month and is currently on its way to India. The "Kriti King", which loaded a 130,000 tonne cargo of fuel oil off the coast of Kalamata at the beginning of May, is currently on its way to China. Shipping sources told Reuters that Russian oil sellers have resumed STS operations in Rotterdam and near Ceuta, Spain, after EU sanctions and protests by activists brought these operations to a halt in Denmark.

Sources: Thomson Reuters, Edwards, Koutantou, Gaddar