Sanctions Risk Reduces Greek Owners’ Appetite for Russian Oil Trade

With increased risk of sanctions enforcement for carrying higher-priced Russian oil, Greek tanker owners – who provide more ships for Russia’s oil trade than any other nation – are beginning to back away, according to tracking firm Vortexa. 

U.S. and EU shipping companies and maritime service providers are allowed to participate in the transport of Russian crude, so long as it is priced below $60 per barrel. By placing a regulatory price cap on Western participation, the G7 nations hoped to somewhat reduce Russia’s earnings without removing Russian oil exports from the global market. The policy has ensured the continued flow of Russian oil, but has had little effect on the revenue. Russian ESPO grade exports out of Kosmino exceeded $60 per barrel from the first day of implementation, and the benchmark Urals grade broke through the $60 barrier on July 15. In addition, Russian sellers have had little difficulty in boosting the real sales price of their oil by adding on excess fees, which raise billions in additional revenue without affecting compliance. 

View entirety: The Maritime Executive