Russia cannot sell 10 million barrels of Sokol oil due to US sanctions – Kommersant

For several weeks now, 14 tankers with 10 million barrels of Russian Sokol oil have been docked in the South Korean port of Yeosu. The raw materials have not yet been sold due to US sanctions on oil-carrying ships and payment problems, reports Reuters citing two traders and data obtained from tanker tracking.

According to the agency, the volumes of stuck Russian oil correspond to the 45-day production level of the Sakhalin-1 project.

A Reuters source at Indian State Oil Corp, which is buying Sokol, said oil deliveries were being delayed due to disagreements over what currency payment would be made. At the end of December 2023, the agency, citing sources reportedthat deliveries of Russian oil to an Indian company are delayed because payments to Indian Oil Corp do not go through because Sakhalin-1 LLC was unable to open an account in a UAE bank.

December 21 Bloomberg reportedthat six Russian tankers carrying Sokol oil stopped on their way to India. The ships were heading to the Indian ports of Paradip and Vadinar. They transport about 5 million barrels of Russian oil.

January 3, Indian Petroleum Minister Hardeep Singh Puri reportedthat Russian oil supplies to India have decreased not because of problems with payments, but because of unattractive prices. On January 16, the minister said Russian tankers were facing problems unloading oil at Indian ports due to the US tightening of oil price ceilings and sanctions on shipping companies in December.

Read more in the Kommersant article. “Tankers have no place here”.

Erdni Kagaltynov