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Who is still buying Russian crude oil -Breaking

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© Reuters. FILE PHOTO – A view of railroad freight cars and oil tanks in Omsk (Russia), May 1, 2020. REUTERS/Alexey Malgavko

(Reuters] – After Moscow invaded Ukraine, Australia and Canada have imposed strict bans on Russian oil purchase from the United States. But, the European Union members are divided.

On Monday, EU foreign ministers were unable to reach an agreement on sanctions against Russian gas and oil supply. They account for 40 percent and 27% of each of these commodities.

Germany, which is the EU’s biggest user of Russian products, and the Netherlands (a key trading hub), argue that the EU cannot reduce its dependency on Russian supply overnight.

While Hungary opposed the ban on Russian energy imports from Russia, Bulgaria indicated that it might seek an exemption in case such a ban was approved.

Some refineries located in the East of Europe or Germany that are landlocked depend almost exclusively on Russian crude oils via pipelines.

To avoid potential legal problems or reputational damage, European and other buyers have opted not to purchase Russian crude. Traders also warned of possible shortages.

Vitol Gunvor, Trafigura, and Gunvor, the chief executives of major energy traders, said that their businesses have stopped spot buying Russian oil but are looking at longer-term deals.

Trafigura estimated that the loss of Russian crude and other products has been between 2,000,000 and 2.5 Million barrels per daily (bpd). Vitol and Gunvor stated that the decline is difficult to quantify, however they didn’t expect it to surpass 3 million bpd.

According to FGE consulting, preliminary data last week showed that Russian crude oil imports had fallen by approximately 0.5million bpd. These numbers could rise to 1.5 million to two million bpd next week.

Rystad energy reported on Monday that crude cargo departures out of Russia’s major western ports have fallen by at least 1.5million bpd following the invasion. There has been no report since March 12, according to Rystad Energy.

China, India and China, who have not criticized Russia’s invasion in Ukraine, continue to purchase oil from Russia. Turkey is also trying to broker between Kyiv, Moscow.

These are major Russian crude oil takers:

NEFTOCHIM BURGAS

Russian oil company Lukoil has a Bulgarian refinery that continues to refine Russian crude.

MIRO

Russian crude still accounts for around 14% of Germany’s biggest refinery Miro. This is 24% owned Rosneft.

PCK SCHWEDT

Rosneft (54% of Germany’s refinery) receives crude oil through the Druzhba pipe.

LEUNA

TotalEnergies is majority owner of the Leuna oil refinery located in eastern Germany. The Druzhba pipeline also supplies Russian crude to this location.

HELLENIC PETROLEUM

Greece’s largest oil refiner relies on Russian crude for 15% of its daily intake. A company from Saudi Arabia secured supplies for the company last month.

ISAB

The largest Italian refinery is owned by the Lukoil-controlled, Swiss-based Litasco SA. It processes both Russian and non-Russian crudes.

MOL

Hungarian Oil Group, which has three oil refineries in Hungary and Slovakia, is still supplied by Druzhba. The sanctions against Russia are opposed by Hungary.

PKN Orlen

The largest Polish refiner continues to purchase Russian crude oil for its refineries located in Lithuania, Poland, and the Czech Republic. However, it stated that it is preparing for an abrupt halt.

According to shipping data, PKN bought three or more cargoes from Norway’s Johan Sverdrup crude, in March, in order to replenish its refinery in Lithuania.

ZEELAND REFINERY

Lukoil is 45% owner of the Dutch refinery. The Dutch company declined to discuss whether or not it used Russian crude oil.

ROTTERDAM REFINERY

Exxon Mobil (NYSE:) did not comment whether the Dutch Refinery at Rotterdam used Russian crude oil.

HINDUSTAN PERROLEUM

According to trade sources, India’s state refiner purchased 2 million barrels Russian Urals in May loading.

INDIAN OIL

Trade sources reported that India’s largest refiner purchased 3 million barrels Urals in May for delivery.

Here are the names of those who have stopped purchasing Russian oil.

BP (NYSE -:)

British oil company Royal Oil will end its Rosneft stake and won’t enter into any new contracts with Russian shipping companies to load at Russian ports unless it is “essential” for supply security.

ENEOS

Japan’s largest refiner stopped purchasing crude oil from Russia. However, some containers that were signed under prior agreements will still arrive in Japan up until April.

ENI (MI:)

Italian oil giant, which is 30% owned by it, has stopped buying Russian oil.

Bayernoil, Germany’s oil refinery in Germany, won’t use any Russian crude. Eni and Rosneft own stakes.

EQUINOR

Norway’s state-owned majority energy company has stopped trading Russian oil, as it shuts down its activities in Russia.

GALP

All new Russian oil products and Russian-related companies have been canceled by the Portuguese oil and natural gas company.

NEST

Finnish oil refiners have Russian oil contracts through the end of this year but are not entering into any new supply arrangements.

PREEM

Mohammed Hussein al-Amoudi is the Saudi billionaire and Sweden’s biggest refiner. He has “paused new Russian crude orders” to replace them with North Sea oil barrels.

REPSOL

Spanish firm has stopped buying Russian crude oil from the spot market.

SHELL

The biggest petroleum dealer in the world will no longer buy Russian crude oil. It will also cease its involvement with all Russian hydrocarbons.

TOTALENERGIES

French Oil Major, a French company that deals in oil, has vowed not to sign any new agreements and will stop purchasing Russian crude oil and other petroleum products before the year ends.

VARO ENERGY

Swiss oil refiner Bayernoil, which has 51.4% ownership in Germany, stated that it does not plan on entering into any new agreements to buy Russian crude.

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