The move to curb crude purchases from Russia comes as traders are moving away from actions that would violate European sanctions against Russia that take effect on May 15, although there is currently no ban on Russian crude oil. . However, traders plan to reduce their purchases of crude oil born of the Parisians as they try to follow EU sanctions that restrict Russia’s economic activities. The current EU sanctions – although a definitive ban has been unsuccessfully negotiated – do not include crude purchased from Gazpromneft or Rosneft if they are “necessary” to maintain energy supply. The ambiguity of the word “necessary”, however, makes trading companies wonder if the service as an intermediary meets the requirements. Vitol said earlier this week that it would close all its Russian crude business by the end of this year, but would decline significantly in the second quarter. The main merchant did not specify May 15. Trafigura said it would fully comply with EU sanctions and predicted that Russian crude volumes would be further reduced after May 15. Shell, another major crude trader, has already stopped buying Russian crude. The European Union has been discussing a possible oil embargo on Russia for weeks, but the only thing that seems to have been proven is that, if it were ever agreed, it would be a phasing out of imports, not a sudden suspension. In particular, Germany has stated that at this time, it can not afford to cut off Russian crude oil. Some German lawmakers, however, are pushing the EU to move away from Russian crude in order to disrupt Russia’s flow of crude revenue. By Julianne Geiger for Oilprice.com More top readings from Oilprice.com:
