Greek Shipping Firms Put the Brakes on Russian Oil Shipping Amidst Sanctions

Restructuring the Oil Trade Greek Shippers Withdraw from Russian Market Under Increased U.S. Price Cap Scrutiny

Greek shippers stop trading Russian oil due to increased U.S. price cap scrutiny

MOSCOW/LONDON, Nov 23 (ANBLE) – Brace yourselves, oil enthusiasts, because three major Greek shipping firms have hit the brakes on transporting Russian oil. Why? Well, it seems they’re trying to avoid the wrath of U.S. sanctions that are currently being imposed on shipping firms involved in the Russian oil trade. Traders and shipping data have confirmed this disappointing development.

This is a significant blow to Russia as it limits the number of shippers willing to transport Russian oil to eager consumers in Asia, Turkey, the Middle East, Africa, and South America. Don’t worry, Russia still has enough shipping firms in its pocket for now, but it’s definitely taken a punch to the gut.

The three ship-sinking Greek shippers known as Minerva Marine, Thenamaris, and TMS Tankers have decided to stop playing Russian oil shipping games in recent weeks. And they’re not talking, folks—no comment from Thenamaris, and not a peep from Minerva Marine and TMS Tankers.

But it’s not just a sudden change of heart from these companies. Oh no, they’ve been active players in the Russian oil game up until September-October, when they gradually started backing away. The evidence is clear—shipping agents’ data and traders who have worked hand-in-hand with these three Greek giants can vouch for it.

The traders, who have had past dealings with these companies, have disclosed that all three firms turned down requests for vessel services related to Russian crude loading in November and beyond. It’s a categorical rejection, my friends.

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So why, you may ask, have these Greek companies jumped ship? Well, tighten your seatbelts because the reason is none other than stricter U.S. sanctions lurking on the horizon. In October, the United States imposed its first set of sanctions on tankers owned by Turkey and the United Arab Emirates that were boldly carrying Russian oil—above the G7’s agreed price cap of $60 a barrel. And just last week, three more ships felt the painful slap of U.S. sanctions.

You see, the G7 countries put a price cap on Russian oil in late 2022 to limit Russia’s export revenues. But, here’s the kicker—it was hardly enforced till now. The cap ensures that Western firms can offer shipping and insurance services for Russian crude, but only if the oil is sold below $60 per barrel. A clever strategy, if you ask me.

However, things started going haywire as Russia’s main export grade, Urals, has been consistently trading above the magical $60 per barrel cap since mid-July. Why, you ask? Well, because of production cuts by the oil-producing countries in the OPEC+ group. Even Russia’s Pacific ESPO Blend crude oil grade has danced over the cap, according to the U.S. Treasury data. Looks like the cap is getting a little too tight for Russia’s liking.

Now, let’s talk about the three Greek firms that have had a long, passionate affair with Russian oil. While most Western companies decided to play it safe and avoid running the risk-filled Russian oil routes, these Greek companies stayed put. They were fearless, but they’ve finally thrown in the towel.

And oh boy, were those routes profitable! The Russian oil trade has brought record-breaking revenues to these courageous shippers who dared to swim against the current risks. But make no mistake, dear readers—it didn’t come easy. Freight rates for Russian oil transportation soared to a mind-boggling $15 million per tanker voyage from Baltic ports to India last winter. Why the hefty price tag? Because these fearless shippers were charging exorbitant rates due to the extreme risk involved. Talk about making the most out of a high-stakes situation! These rates were several times more expensive than those for non-sanctioned crude shipments.

Just imagine—these three Greek companies operate over 100 oil tankers that can handle almost all the oil exports from Russia’s European ports. That’s a whopping 10 million tonnes a month, or 2.4 million barrels per day. They also have a fleet of smaller tankers that gracefully transport fuel. Quite the impressive fleet, wouldn’t you say?

But here’s the kicker, folks—Russian oil is now taking an agonizingly long journey of 8-10 weeks before it reaches its eagerly waiting consumers in Asia. It used to be a mere two weeks before sanctions hit, back when oil was being sold in Europe. That means the demand for tankers has skyrocketed. No wonder these brave Greek companies decided to call it quits.

But fear not, Russia isn’t losing its game quite yet. Word on the street is that other shipping companies have swooped in to save the day. We’re talking about Russia relying on its own shipping company, Sovcomflot, along with a bunch of mysterious shipping firms registered in unexpected places like the UAE, India, Hong Kong, Seychelles, and Ghana. It’s like a global gathering of flags from Liberia to the Cook Islands. Impressive, isn’t it?

So there you have it, folks—the tale of three Greek shipping firms abandoning the Russian oil ship, all because of those pesky U.S. sanctions. The drama continues as Russia juggles its shipping options to keep its oil flowing. Will the dark fleet come to its rescue? Only time will tell.

What do you think about these developments? Are you surprised by the impact of sanctions on the Russian oil market? Share your thoughts below!

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