Jonathan Saul

(Reuters) – Five industry sources told Reuters that Russian fuel suppliers have stopped selling marine fuel to vessels carrying the Russian flag at key European hubs like Spain and Malta. This is a further blow for Moscow’s exports.

According to shipping sources, Russian oil tankers traveling from Baltic ports to Asia face major logistical challenges if they lose access to the Mediterranean Sea refuelling stations. There are also safety concerns about being trapped at sea with potentially explosive cargoes.

Russia’s banks are under severe sanctions. Oligarchs, foreign companies and other entities have cut ties following Russia’s invading of Ukraine. This was referred to by Russian President Vladimir Putin as a “special military operation”.

There are many factors that have led to the suspension of refuelling service. Some of these include what some sources call “self-sanctioning,” where companies refuse to sign contracts with Russian entities in order to keep ahead of any new wave of sanctions.

Problems with payment due to restrictions on banking have also contributed to problems when it comes to deals for marine fuel. This is usually priced in U.S. Dollars and paid for.

One source said Russian-flagged ships couldn’t secure marine fuel in Malta, the British overseas territory of Gibraltar or neighbouring Algeciras in Spain – all major bunkering, or refuelling, zones in the Mediterranean.

Another source, who knew the movement of one of these tankers said that “many tankers had to make a longer trip to bunker fuel in other countries” after European ports were closed.

According to a government official from Malta, no Russian-flagged ship can be allowed to Malta’s ports.

According to Spain’s Merchant Marine spokesperson, it is “possible” that specific providers may adopt these measures themselves.

The spokesperson from Gibraltar said that port authorities would reject any calling request by ships owned or operated in Gibraltar by anybody connected to the country. This includes bunkering requests, according to UK regulations.

According to the spokesperson, Russian cargoes on foreign vessels will not be affected as they were in Britain.

Doing business is not an option

Russia’s maritime sector has already begun to deal with the closing of services such as ship certification by top foreign providers. This is vital for accessing ports, and protecting insurance.

Sources in the shipping industry say that it is difficult to see how Russian companies could operate when multiple services are being pulled out, given the complexity of world seaborne trade.

Monjasa, a Danish shipowner and marine fuels supplier Monjasa stated that it suspended trading and supplies with Russian-flagged ships, Russian registered businesses and individuals with ties to Russian ownership. This was effective from February 25, the day following Russia’s invasion.

Bunker Holding, Denmark’s Danish company that handles Russian shipping claims, stated it has stopped any deliveries to Russian ports since March 1, and added that Dan-Bunkering and its subsidiaries had “ceased to engage in new obligations with Russian counterparties”.

Bunker Holding stated in a statement that they are fully aware of the difficulties this decision to suspend trade with Russian counterparties poses to clients and counterparties around the globe, however with the dire situation in Ukraine it is imperative to swiftly take decisive action against Russia.

Gibraltar bunker supplier Peninsula, which is active elsewhere in the Mediterranean and other locations, said in a LinkedIn post it was “not doing business with Russian vessels, ports, companies – owned or majority owned – suppliers and financial institutions”.

Britain issued sanctions earlier in the month against Russia’s largest shipping firm Sovcomflot.

Although a ban is being considered on Russian ships from EU ports, Russia’s exporters of oil and other products have had difficulties obtaining charters for vessels and insurance.