Tanker with Russian oil leaves India after 3 weeks, sources say

Related News

• Patrushev, a Kremlin hawk, says that trust between Russia and the U.S. needs to be restored

  Nikolai Patrushev is one of the Kremlin’s senior hawks. He said that the trust between Russia and the United States, the "great powers", should be restored. Moscow was also ready to resume its cooperation with America on the Arctic. Donald Trump, the U.S. president, has shifted his focus towards Russia to try to end the three year war in Ukraine. He and his administration see China as the greatest threat to the United States. The Kremlin welcomed the opportunity to restore relations with the United States, after the confrontation about Ukraine caused what diplomats in both countries described as the worst crisis ever experienced by their relationship. The Kommersant reported that Kremlin aide Patrushev - a Cold War veteran who helped to formulate the Kremlin’s national security policy - said: "Russia and the United States as great powers have historically borne special responsibility for world fate." "And our experience over the past decades, or even centuries, shows that we have always been able to overcome our differences in the most difficult crisis situations." Trump's pivot toward Russia has deeply worried many of Washington's traditional European allies who fear Washington could turn its back on Europe. Patrushev is a former KGB agent from St Petersburg, where Vladimir Putin was also born. He said that Russia would be ready to resume its cooperation with the U.S. on the Arctic. (Reporting and editing by Guy Faulconbridge; reporting by Vladimir Soldatkin)

• Russian oil rates from Baltic to India continue to fall as Urals remains under price cap

  Two traders reported that the freight rates for Russian oil shipments to India from Baltic ports are dropping further from their recent highs in April, as Urals crude is trading well below $60, increasing tanker supply. The Group of Seven, together with the EU, will impose a $60 per barrel price cap on Russian crude oil by late 2022. This will restrict access to Western shipping services and insurance for purchases above this limit in an effort to reduce Moscow's funding of war. Costs of shipping Urals Oil from the Baltic Ports of Primorsk & Ust-Luga, to India have fallen to an average of $6 million for a one-way shipment. This is down from $7 million in late March and $8 million at the beginning of this year. Early in April, the global oil price fell, pushing Urals crude into Russian ports below $60 a barrel. This allowed more Western shipping firms to resume their services, including freight, for Russian oil. On Thursday, the price of Urals oil shipped from Primorsk port was $53.5 per barrel. After a new round U.S. energy sanctions announced in January took effect, the price of Russian crude shipping increased sharply. Russian oil sellers had to find new tankers to replace the ones that were hit by the sanctions. The cost of shipping Russian crude oil from the Baltic ports to India in January was $4.7-4.9million. Reporting by

• Indian ports continue to offer discounts on Russian Urals despite lower Saudi prices

  Four trading sources said that the discount for Russian Urals oil cargoes loaded in May to Brent dated this month remained at this month's levels, even though Saudi Arabia reduced its official selling price of oil. They said that May Urals cargoes were selling at a discount of $2.50-3 a bar to dated Brent, on a DES basis (delivered from ship), which is close to the estimates for April cargoes. "Urals Prices held firm despite Saudi Arabia’s decision to cut prices for the competing Arab Light Oil. Russian barrels are very much in demand," said an Urals trader. Saudi Arabia's Aramco (the world's biggest oil exporter) lowered its official contract price for Arab Light Crude by $2.30 a barrel to $1.20 over the benchmark average Oman/Dubai, in response to an OPEC+ agreement to increase production. The price of Urals FOB (free-on-board) in Russian ports has fallen to its lowest level since 2023, as Brent oil prices have dropped, which is limiting the revenues for Russian oil sellers. Traders said that the price of Urals is supported by the fact that there was a shortage in April-May and refinery runs were higher than expected in Russia. According to industry sources, calculations show that idle oil refining capacities at Russian refineries are expected to fall in May compared to April. This year, drone attacks on Russian refineries led to unplanned outages from January to March. Reporting by Nidhi in New Delhi, and reporters in Moscow. Editing by Kirovan Donovan.

• Russia increases oil product supplies to Indonesia

  Market sources and LSEG data on Thursday showed that Russia has increased its shipments of oil to Indonesia in response to Western sanctions imposed due to its invasion of Ukraine. Since the full European Union embargo against imports of Russian oil-based products went into effect in February 20, Russia has diverted fuel exports towards Asia, Africa, and South America. In the past, Indonesia imported oil products mainly from Saudi Arabia and other countries like Malaysia, Singapore, United Arab Emirates, and Qatar. Shipping data shows that between January and the end of March, approximately 500,000 metric tonnes of fuel oil was exported from Ust-Luga in Russia to Indonesia. Sources and LSEG data revealed that two cargoes containing about 50,000 tonnes of naphtha also were shipped to Indonesia this year from the Russian Arctic Port of Arkhangelsk. Indonesia imported around 58.200 tons of naphtha from Russia and 100,000 tons fuel oil for the entire year 2024. In March, a vessel named the Savitri transported 33,000 tons diesel from the Russian Black Sea Port of Tuapse in Indonesia to the Karimun port. Shipping data indicates that another tanker called the Lunar Tide could transport nearly 60,000 tonnes of diesel this month from Tuapse port to Karimun. Unknown buyers are the cargoes. Karimun has traditionally been used as a hub of storage for Southeast Asia. Some traders store their diesel cargoes here and blend them to be delivered later into other destinations in the region, according to trade sources. One source said that due to regulatory requirements most of these cargoes could not be resold into Indonesia. Kpler ship tracking data showed that so far this year, 105,000 tons have been exported out of Karimun. These volumes are headed for countries such as East Timor and Myanmar, along with Singapore. (Reporting in Moscow by Trixie Yap, Singapore by Joe Bavier; Editing by Joe Bavier).

• Sources say that STS transfers have helped to boost Russian Arctic oil exports from China.

  According to traders and Vortexa data, Russia's Arctic Oil exports to China will rise dramatically this month. This is due to a surge in ship-to -ship transfers on the seas to ensure that tankers arriving at ports are not listed as U.S. sanctioned ships. In January, the U.S. imposed broader sanctions on all crude oil tankers such as ARCO, Novy Port, and Russian producer Gazprom. According to traders and Vortexa Senior Analyst Emma Li, to avoid the curbs, STS transfers of cargoes take place in international waters near Singapore and Malaysia, where cargoes will be loaded onto Very Large Crude Carriers that aren't subject to sanctions, before heading to Chinese ports. Li estimated that at least 4 million barrels Arctic oil finished STS last month and 16 millions more are arriving, or will arrive in the South China Sea, this month. She added that China's Arctic Oil imports have risen due to the abundance of oil. However, the final volume will depend on logistical hurdles and whether Chinese refiners show interest in buying it. Gazprom, the Russian oil exporter, did not respond immediately to a request for a comment. Vortexa reports that China imported Arctic oil from Russia at an average of 25,000 barrels a day (bpd) in March. China has stated that it is opposed to unilateral sanctions imposed by the United States and other countries in order to curb Russian, Iranian and Venezuelan energy revenues. According to one trader STS transfers have been used because Chinese buyers are wary about secondary sanctions, and willing to pay more for STS cargoes. Kpler data show that the VLCC Atila, for example, loaded 2,07 million barrels ARCO in March from two tankers sanctioned in Singapore waters and delivered the cargo in April to China's Dongying port in eastern Shandong Province. Atila has previously been involved in STS transfers of Iranian oil. Arctic grades, ARCO, Novy Port and Varandey, are produced in Russia’s northern regions where harsh winter weather impacts production and oil project investments require huge investment. It is difficult to track the exports of these grades because they are usually shipped from oilfields into floating storage in Murmansk, and then sent to end users. The STS adds to the shipping costs. The North Sea Route to China (NSR), the shorter route, is closed until July. One trader stated that the route was very expensive and long. "The only solution is to evacuate the barrels." The traders stated that light Arctic oil was offered at a discount to Brent benchmark prices. Previously, it had been sold at a premium. Some of the Arctic oil cargoes will not be able to find a new home anytime soon, as they are currently being stored on vessels. LSEG data shows that the tanker Fast Kathy, for example, loaded Arctic oil at Murmansk in March and has been cruising off Port Said (Egypt) since April 9. Traders said that India, which was previously the largest buyer of Arctic oil due to sanctions has reduced purchases. Traders said that the majority of Arctic oil sold to India by Litasco is Varandey, supplied by Russia's Lukoil. Lukoil didn't immediately respond to our request for comment. The Indian authorities have banned a tanker, carrying a cargo of Russian crude oil, from conducting an STS operation near the port of Mumbai. Myanmar and Syria are also Arctic oil buyers. Myanmar received its first shipment of Arctic oil earlier this year.

• Government says that Czech Republic will be fully independent from Russian oil

  Government officials announced on Thursday that the Czech Republic is now completely independent from Russian oil supplies, for the first ever in its history. This follows the completion of capacity improvements on the TAL pipe coming from the West. In a Thursday news conference, Czech TV broadcasted by Prime Minister Petr Filia that the first increased oil supplies have arrived at the central oil depot of the Czech Republic. The Czech government is trying to reduce its partial dependency on the Druzhba Pipeline, which has been delivering Russian supplies for more than 60 years. At the end of last year Czech pipeline operator MERO completed an upgrade along the Transalpine (TAL) pipeline, which carries oil from tankers in the Italian port of Trieste to Germany, where it feeds into the Ingolstadt-Kralupy-Litvinov (IKL) pipeline to the Czech Republic. With the TAL upgrade, the Czech Republic now has a capacity of 8 million tonnes per annum. This is enough to meet its annual requirements. Orlen Unipetrol, a Czech refiner, had been sourcing about half of its crude oil needs from Russia. The other half was sourced through TAL. The company has been using oil from the state reserves in order to maintain production since the halt of supplies through Druzhba began in March. However, it is now preparing to switch over to a full supply through TAL after the increase in capacity. (Reporting and editing by David Holmes; Reporting by Jason Hovet)

• Sources say that exports of Russian Arctic oil sanctioned to China are expected to increase in April.

  The export of Russian Arctic oil to China is expected to increase sharply in April, after sellers offered large discounts and shipped on non-sanctioned tanks to counter an embargo by the United States. This was according to two Russian oil traders and analytics firm Vortexa. The Arctic oil trade accounts for a tenth (or 10%) of Russia's seaborne crude oil exports. This business was disrupted when Washington imposed sweeping sanctions in January against nearly all tankers that carried supplies of grades like ARCO, Novy port, Varandey and Gazprom Neft. The traders and Vortexa Senior Analyst Emma Li said that to avoid the curbs such cargoes are transferred via international waters near Singapore and Malaysia, to Very Large Crude Carriers without sanction, a transfer process known as Ship-to-Ship (STS), before they head to China. Li estimates that at least 4,000,000 barrels of Arctic Oil completed STS last Monday and 16,000,000 more are arriving, or will arrive in the South China Sea during this month. The abundant supply of Arctic oil will likely lead to a rebound in China's imports. However, the final volume discharged may vary depending on logistical challenges and the buying interest of Chinese refiners. Lukoil and Gazprom Neft didn't immediately respond to requests for comment. In March, China imported 250.000 barrels of Arctic oil per day. A trader said that such transfers were used by many Chinese buyers who require their oil to be transported on vessels not sanctioned to avoid secondary sanctions. They are also willing to pay a higher price for these cargoes. Kpler data show that, for example, non-sanctioned VLCC Atila discharged 2.07 million barrels ARCO from two sanctioned tanks in Greater Singapore waters in March and then loaded the cargo in Dongying Port in eastern Shandong Province in April. Atila was previously involved in STS transfer for Iranian oil. The harsh climate in the northern regions of Russia affects production and logistics. Therefore, setting up a project to produce oil requires huge investments. Lukoil produces light Varandey, while Gazprom is the producer of heavy ARCO and Novy Port. The traders stated that the STS adds to the shipping costs and delays the shipments to China by two months. One trader stated that the route was very expensive and long. "The only solution is to evacuate the barrels." The traders stated that light Arctic oil was offered at a discount to Brent prices, compared to the premiums charged previously. Traders said that India, the former top buyer of Arctic Oil, has reduced purchases due to sanctions. Traders said that Litasco supplies most of the Varandey oil to India. The Indian authorities have prohibited a tanker from moving its Russian oil cargo on to another vessel in the sea. Myanmar and Syria are also potential buyers of Arctic oil. The first shipments took place in the early part of this year.

• Officials say that Russia's attacks in Ukraine have caused a petrol station to burn and injured several people.

  Regional officials reported on Monday that overnight attacks by Russia caused a fire to break out at a petrol pump in Zaporizhzhia. The attack injured eight people, and destroyed houses throughout the southeast part of Ukraine. Ivan Fedorov said that no one was hurt in the petrol-station fire following a drone strike on the area in a Telegram post. He shared a picture of large flames burning a building at night. In late March, the U.S. announced that it had reached an agreement with Russia and Ukraine regarding two ceasefire agreements. One of these accords would prohibit strikes against each other's infrastructure. Both sides have accused each other repeatedly of violating the moratoriums. It wasn't immediately clear if the petrol station at Zaporizhzhia had been targeted or if the fire was caused by debris falling from a drone that was destroyed. The report of Fedorov could not be independently verified as there was no comment by Russia. Ukraine's Emergency Service posted on Telegram that seven people were injured by a Russian drone strike on the Black Sea Port of Odesa late Sunday night. The attack also damaged several homes as well as a medical center. Serhiylysak, the governor of Dnipropetrovsk Region, confirmed on Telegram that a 53-year old man was injured by heavy artillery fire from Russia in the Nikopol District of the Dnipropetrovsk Region. It was unclear what the full scope of the attacks overnight was. Ukraine's Air Force reports data on attacks normally late in the morning. Officials said that the attacks occurred a day after the deadly attack on Ukraine by two Russian ballistic rockets, which killed 34 people and injured 117 others. Moscow has not commented on any of the incidents. Both sides deny that civilians were targeted in the war which Russia began with a full scale invasion of its smaller neighbor more than three year ago. The conflict has resulted in thousands of civilian deaths, with the majority being Ukrainians. (Reporting and editing by SonaliPaul in Melbourne, Lidia Kelly)

• Taiwan accuses a Chinese captain of damaging underwater cables in a historic first

  Taiwan prosecutors charged for the first-time a Chinese captain of a ship with damaging underwater cables in February off the island. This comes after an increase in sea cable failures alarmed Taiwan officials amid tensions between China and Taiwan. The man, according to prosecutors, was the captain of a Chinese-crewed Hong Tai58 registered in Togo. Taiwanese officials detained the vessel after they suspected it had damaged an underwater cable near southwestern Taiwan. The Tainan prosecutors office said that they have charged the Chinese captain of the ship, identified only as Wang by the prosecutors, with damaging the cable. Wang said he was innocent but refused to give details about the owner of the ship and had a "bad attitude", according to a statement from the prosecutor's office. Prosecutors said that seven other Chinese nationals who were detained at the time would not be charged, and they will be sent back to China. This was the first case of its kind in the island for damaging sea cables. I was unable to find out who owned the ship or immediately locate an attorney representing the captain. The China Taiwan Affairs Office didn't immediately respond to an inquiry for comment. China accused Taiwan in the past of "manipulating", or attempting to influence, the possibility of Chinese involvement. According to Taiwan's digital ministry, the country has reported five sea cable failures in this year. This compares with three cases each for 2024 and 2023. Taiwan's Coast Guard has increased efforts in recent months to protect sea cables. This includes monitoring a "blacklist", which is a list of about 100 China-linked vessels registered to another country than their owner near Taiwan. Taiwan reported in January that it suspected a ship with a China connection of damaging an underwater cable off its north coast. The ship owner Deny the allegations Taiwan, the territory that China claims, has complained repeatedly about Chinese activities in "grey zones" around the island. These include balloon overflights, sand dredging, and other methods of pressure without direct confrontation. Taipei is alarmed that another Chinese ship has been suspected of damaging an underwater cable in the past year. The navy and other agencies have increased their efforts to safeguard the vital communication links under the sea, which are crucial to the island’s connections with the rest of world. Taiwan's government, which rejects Beijing's claims of sovereignty, has drawn parallels between the damage it suffered and that caused to cables undersea in the Baltic Sea after Russia invaded Ukraine. (Reporting and editing by Ben Blanchard; Yimou Le, Jeanny Kao, and Gerry Doyle).

• The LME now has 88% of Russian metal, up from 78% before.

  LME data on Thursday showed that the proportion of aluminium with Russian origin registered in warehouses at the London Metal Exchange increased to 88% from 75%, and the percentage of Indian origin decreased to 11%. To comply with U.S., British and European sanctions over Russia's invasion of Ukraine in 2022, the LME has banned all metals produced in Russia from its warehouse system after April 13, 2024. Metal made before April 13, 2024 can still be traded. Stocks of aluminium with Russian origin, or those on warrant The end-of-March figure was 200,700 tons, up from 155125 tons in February. The data revealed that the amount of aluminium from India fell to 25,050 tonnes, down from 49,400. LME warrants are title documents that confer ownership. The amount of copper produced in China fell from 80,950 to 45,325 tons, while the amount of copper made in Russia rose from 37% to 54%. At the end of December, half of LME nickel stocks were made in China. (Reporting and editing by David Evans; Polina Devtt)

• Kyiv: Permit-free access to the EU for Ukrainian cargo is extended until year-end

  Ukrainian officials announced on Thursday that a freight liberalisation deal allowing Ukrainian cargo into the EU without a transportation permit had been extended to the end of this year. Signed in 2022 the agreement eliminates the need for Ukrainian carriers for transit and bilateral transports to the EU to obtain permits. It also prevents Ukrainian exports from having to stop by road checkpoints. This arrangement is crucial in a situation in which Ukrainian Black Sea ports are blocked, which are key for imports and exports since the Russian invasion of February 2022. The sharp increase in traffic between Ukraine and the EU borders has prompted protests by hauliers from neighbouring countries. Oleksiy Kuleba, the Ukrainian Vice Prime Minister, said that the extension of the agreement was good news for Ukraine and its exporters. Denys Schmyhal, the Prime Minister of Ukraine, also welcomed this development. He wrote: "This is the 4th extension of the Agreement which proves it effectiveness and efficiency."

• Ifx: Kazakhstan talks to oil producers about reducing output

  Interfax reported Thursday that the Energy Ministry had been in contact with Kazakhstan's oil producers to reduce the output. The country was producing more than its OPEC+ quota. Kazakhstan has been pumping more oil than the limit set by the Organization of Petroleum Exporting Countries (OPEC) and its allies, led by Russia, for several months. OPEC+ member countries have been pressuring Kazakhstan to reduce production to honor the agreed quotas. Interfax reported that Kazakhstan's Energy Ministry said Thursday the country had exceeded its OPEC+ quota for March, but would fulfill its commitments by April and compensate partially for its earlier overproduction. Many Western oil majors are present in Kazakhstan. This country is ranked 10th globally for its production of crude oil. The main factor in Kazakhstan's increase in oil production has been a production boost at Tengiz, the largest oilfield operated by Chevron. Interfax cited the Energy Ministry as stating that Kazakhstan had not reduced oil exports through the Caspian Pipeline Consortium last month. According to sources in the industry, Black Sea CPC Blend oil expected exports for April have been revised downward. In February and March, drone attacks by Ukraine damaged the pipeline infrastructure. Russia restricted CPC’s exporting capability at the Black Sea. This was partially restored this week. (Reporting and Writing by Lucy Papachristou, Vladimir Soldatkin and Kirsten Donovan; Editing by Kirsten Doovan).