EU purchases of laundered Russian oil worth an estimated €1.1 billion to the Kremlin in 2023
The fuel is entering through a not-so-small loophole left in EU sanctions which allows products refined from Russian oil to flow into the bloc. This has resulted in a ‘laundromat’ where refineries in countries like India and Turkey, can import discounted Russian crude, refine it into products like diesel, jet fuel, or gasoline, and legally sell the refined oil to embargoing jurisdictions like the EU.
Has this meaningfully changed? Because I’m finding a lot of news about EU states increasing their trade with Turkyie and it’s neighbors, without a hard look at where this glut of reserve is coming from.
Russia still looses Money on this, as the Turkey and India won’t pay full price for this oil
Russia still looses Money on this
The margins on O&G are enormous. They’re not pumping gas for charity.
They still get a worse price than if they could sell directly to Euroe
“Euro Bonds” are the two scariest words in the US Treasury’s vernacular right now.
That is honestly not that bad of a problem. Russia used to export a lot of refined products, so they loose the profits of doing the refining. They also have to sell for a lower then market price. Hence much less money for Russia and the global oil market does not have a huge supply problem.
