Oil firms Shell and Vitol still purchasing oil from Russia
4 Min Read
While Shell has reported record annual profits of £32bn earlier this month, Vitol has likewise reported record profits of $4.2 billion during the energy crisis.
-
A photo taken May 26, 2022 shows the logo of British multinational oil and gas company Shell at an oil and gas station in Berlin (AFP)
The Guardian reported on Monday that UK-based energy company Shell and energy trader Swiss-based Vitol were circumventing EU sanctions, purchasing Russian oil via Turkey.
In a letter sent by an economic advisor to the Ukrainian Presidency, Oleg Ustenko, to the new Shell chief executive, Wael Sawan, the former expressed that Shell had not breached any sanctions but purchasing oil commodities from Turkish refineries "awash" with Russian oil "flies in the face of Shell’s pledge to withdraw from its involvement in Russian crude oil and petroleum products, and exploits a loophole in the EU sanctions regime."
"If western companies keep buying Russian-derived refined products, there will no incentive for refineries around the world to stop importing Russian crude," he added.
While Shell has reported record annual profits of £32bn earlier this month, Vitol has likewise reported record profits of $4.2 billion during the energy crisis.
"We call on Vitol to commit to a date by which it will honour its own pledge to cease trading Russian-origin oil products," the letter says.
In a bid to choke Russia financially and pressure it to withdraw from Ukraine, Ustenko has urged the companies to commit to a deadline to cease the purchase of Russian oil from Turkey, the report states.
In December, the EU imposed an embargo on Russian crude oil coming in by sea and agreed with its G7 partners to impose a price cap on Russian oil at $60 per barrel.
The ban was extended on February 5 to refined products such as diesel and fuel oil. Despite this, exports of Russian oil to refineries in India and Turkey have reportedly increased since the start of the conflict.
Read more: Shareholders sue Shell board over ‘flawed’ climate strategy
No way to be sure of origin of oil imported from Turkey
A non-profit organization named Global Witness found that since December 5, Shell had imported more than 600,000 barrels of refined products from Turkey to the Netherlands.
It is highly suspected that some of the oil may originate from Russia. Yet, there is no way this can ever be proved.
Once crude bought from Russia is refined, Turkey could blend it with that of other nations.
Since December 5, the EU has reportedly bought 5 million barrels of refined products originating from Turkey.
Another 20 million barrels were purchased from refineries that handle Russian oil in 2022.
"We remain fully committed to our pledge and have stopped purchases of Russian origin crude, as well as cargos of refined products exported from Russia," a Shell spokesperson told The Guardian.
"It is a decision we made with conviction, carefully aligned with government guidance and in compliance with sanctions, which do not exclude purchasing products refined from Russian crude in third countries where this is legally permitted."
Vitol, on the other hand, said that "Product exported from Turkish refineries is not Russian origin, according to all international regulations," noting that volumes of Russian crude and products had fell by more than 90% since the first quarter of 2022, and "volumes are now negligible."
"We continue with our policy of minimizing purchases of Russian origin products, in full compliance with all applicable legislation and regulation in relation to sanctions," Vitol added, noting that it had long held an important presence in Ukraine intends to invest in the country on the long term.
Read more: Shell buys 9% stake in Qatari gas field
