Turkish Oil Giant Retreats From Russian Trade After US Sanctions
Turkey’s biggest refiner is restricting its purchases of Russian oil and fuels to avoid falling foul of US sanctions, the latest customer to show wariness in dealing with Moscow following the measures last month.
Based Turkiye Petrol Rafinerileri AS, better known as Tupras, will cease to accept shipments
that aren’t in compliance with a Group of Seven nations oil price cap, a person with knowledge of the matter said, asking not to be identified because the matter is sensitive and private. Tupras was not immediately available for comment.
On Jan. 10, the outgoing Biden administration imposed wide-ranging sanctions on Russia’s oil exports, spanning 161 tankers, two large producers, numerous traders and — perhaps critically for some customers — the main Moscowbased insurer of shipments. Tupras stopped buying above-cap barrels after that date but will still accept delivery of them up to Feb. 27.
The decision to stick to the price cap means Tupras will be complying with the wishes of western powers who’ve long been trying to cut Russia’s access to petrodollars. The Kremlin in the past said it wouldn’t deal with entities that stick to the limit. Russia’s flagship Urals crude is currently hovering around the $60 a barrel threshold, data from Argus Media show, raising a question of whether the Turkish firm would be a willing buyer.
Turkey is home to the Bosphorus and Dardanelles shipping straits, through which upwards of $300 billion of trade flows on ships each year. It has previously emphasized that vessels must have appropriate cover.
