Greek shipowners are swiftly withdrawing from the Russian crude trade, with the number of Greek-owned tankers carrying Russian crude dropping to just eight in January, according to vessel tracking data compiled by Bloomberg. This decline, from over 40 in May and approximately 20 in the second half of the previous year, is attributed to increased US sanctions targeting traders and shipping companies involved in Russia’s petroleum sector.
The U.S. Treasury’s move to inquire about compliance with a $60 per barrel Group of Seven (G-7) price cap on Russian oil has spooked Western tanker owners. Notices were sent in November to companies in about a dozen countries, followed by sanctions on firms trading Russian oil and shipowners facilitating its movement.
Greek-owned ships have completely exited the trade in Russian crude from the country’s Pacific terminals to buyers in China and India. Grades like ESPO and Sokol, which trade at a premium to Moscow’s flagship Urals and exceed the G-7’s cap, are affected. To purchase or transport Russian oil, entities must provide documented attestations confirming compliance with the price cap.
ESPO’s prices, as reported by Argus Media, were approximately $13 a barrel above the G-7 price cap in the first four weeks of 2024. In contrast, Urals loaded at Baltic terminals was only about $1 a barrel over the cap.
The absence of the Greek fleet adds pressure on Russia’s own tankers and the shadow fleet that has expanded since Moscow’s invasion of Ukraine almost two years ago. With the European market lost, Russia now heavily relies on buyers in China, India, and to a lesser extent, Turkey, leading to longer voyages and increased shipping activity.
The complexity of deliveries is heightened by attacks on shipping in the southern Red Sea and the Gulf of Aden by Houthi militants in Yemen. Russian crude sent from western ports to India and China faces these challenges, and at least one tanker has been hit, despite assurances from the Houthis regarding the safety of Russian and Chinese ships.
Tanker tracking data indicates that no tankers carrying Russian crude have diverted to avoid the southern Red Sea, involving both state-controlled Sovcomflot PJSC vessels and those in the shadow fleet, established to help Moscow circumvent Western restrictions on oil shipments.
