Russia crude oil exports surge to five-month high
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Russian crude oil exports surge to their highest level in months as Syria serves as a new gateway for Russian exports.
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Men work on a cargo ship docked at a terminal of the port of Latakia, Syria, Monday, December 16, 2024. (AP)
Russia's crude oil exports have surged to their highest level in five months, even as US-led negotiations continue in an effort to broker a ceasefire in Ukraine.
According to recent data, Russian crude oil flows from all ports rose to 3.45 million barrels per day in the four weeks ending March 23, marking the highest level since October 20. This increase came despite a weekly decline in shipments, primarily due to lower flows from the Baltic and Black Seas.
Syria: A new short-haul oil destination
One key factor behind the rise in exports is a new short-haul client in the Mediterranean: post-war Syria. Late last week, a US-sanctioned tanker delivered the first shipment of Russian crude to Baniyas port in Syria.
Reports indicate that three additional vessels, all blacklisted by Washington, are en route to the country.
The growing oil trade between Moscow and Damascus underscores Russia’s ability to diversify its energy markets despite Western sanctions, further complicating geopolitical dynamics amid the ongoing Ukraine conflict.
Similarly, earlier in March, Russia shipped a diesel cargo to Syria aboard a US-sanctioned tanker, which marked the first known direct supply of its kind in more than a decade, according to LSEG data.
The final destination of the shipment remains unclear. Russia maintains two key military installations in Syria: an air base in Hmeimim and a naval base in Tartus, both of which are crucial for Moscow's strategic influence in the Middle East and Africa.
Moscow has asserted its intent to retain its hold over the facilities despite the regime change in Syria.
Blanket US sanctions
Since the start of the Ukraine war, the United States has imposed extensive sanctions on Russia, including measures aimed at restricting revenue from its oil and gas industry to weaken its military funding.
On January 10, the US added Prosperity to its list of sanctioned vessels involved in exporting Russian oil products. The European Union and the United Kingdom followed suit on February 24.
Violations of US sanctions could result in civil and, in some cases, criminal penalties. In a notable instance, the US Department of the Treasury's Office of Foreign Assets Control (OFAC) reached a $7.45 million settlement last year with State Street Bank over "apparent violations" of Russia- and Ukraine-related sanctions.
Simultaneously, the US issued a six-month waiver to its Syria sanctions, specifically targeting the energy sector and financial transactions with Syrian governing authorities.
