VTB launched oil trading – Kommersant

VTB Group announced the launch of a new direction for itself – oil trading. It is aimed at large Russian industrial enterprises. Head of the corporate and investment business unit of VTB Vitaly Sergeychuk at the “Russia Calling!” forum noted that a local oil trading market is emerging in the Russian Federation to replace the departed Western companies.

VTB plans to provide a full range of services that are usually provided by oil traders: financing of oil product inventories, provision of temporary credit leverage, logistics and delivery of goods to the location. It is also planned to create reserves of petroleum products and ensure their storage.

“We see significant changes in the functional organization of oil trading in Russia, a local market is emerging, Russian companies have begun to provide the functions of intermediary traders that were previously performed by Western companies,”— said Mr. Sergeychuk.

According to the top manager, the basis for launching oil trading was the VTB Group’s expertise in working in commodity markets, a client base that includes the largest industrial enterprises, and the possibility of providing financing. It is noted that in the fall of 2023, VTB Group became a member of the St. Petersburg International Commodity and Raw Materials Exchange. This opens up opportunities for the bank to participate in tenders and purchase petroleum products.

VTB works with all classes of petroleum products. As noted, diesel fuel is in greatest demand among large customers. The geography of the business includes “all the main points of industrial production and transportation of petroleum products in Russia.”

Large international hydrocarbon traders Vitol, Trafigura, Glencore and Gunvor have reduced or stopped working with the Russian Federation amid the deployment of troops to Ukraine. In March 2023 Vitol and Trafigura statedthat they continue to avoid transactions with Russian oil.

Leonid Uvarchev