Turkey Shifts Oil Sources asโ Western sanctions Impact Russian โSupply
Istanbul, Turkeyโ – November 2,โค 2023 – Western sanctions targeting Russia โare driving a important shift in turkey’s crudeโ oil procurement, with major refiners actively diversifying away from Russian sources. the move, confirmedโ by industry sourcesโ and reported by Reuters, demonstrates the growing impact of internationalโ efforts to curtail russia’s oil revenues used โคto finance the war inโ Ukraine.
Turkey’s main oil refiners, including STAR (SOCAR turkeyโข Aegean refinery) and Tupras, are increasing purchases of crude โคfrom alternative suppliers such as iraq,โ Kazakhstan, Brazil, and Angola. This diversificationโ is coinciding with an overall decrease โฃin Turkey’s total crude oil imports and a reduced percentage originating from Russia compared to the previous year.
STAR,โค owned by Azerbaijan’s SOCAR, recently secured fourโฃ cargoes of crude oil from Iraq, Kazakhstan, and other non-Russian suppliers for delivery in โDecember. This represents a considerable โคincrease in non-Russian supply, ranging from 77,000 to 129,000 barrels per day, depending on cargo size. Previously, Russian โcrude accounted for almost all of STAR’sโข consumption in September andโข October.
Tupras, operating two refineries, is also actively diversifying, seeking non-Russianโ crude grades similar to Russia’s Ural crude, specifically Iraqiโข varieties. The companyโ reportedly โplans to eliminate Russian crude imports at one โขof its plants in theโฃ nearโ future to ensureโค continued fuel exportsโฃ to Europe without violating upcoming EU sanctions.โข While Tupras declined to โขcomment, sources indicate โthe company has already begun diversifying, with its first cargo from Brazil and a second from โฃAngola anticipated.
Data reveals a marked โคincrease in โคIraqi crude oil imports into Turkey, with shipments expected to reach 141,000 barrels per day in November, up โfrom 99,000 barrels per day inโฃ October,โค and considerably higher than the year-to-date average of 80,000 barrels per day.
Between January and october ofโฃ this year,Turkey imported approximately 669,000 barrels of crude oil per day.Of thatโค total, 317,000 barrels per day (47 percent)โฃ came from Russia. Thisโค represents a decrease from the previous year, when Turkey imported 580,000 barrels per day, with 333,000 barrels per day sourced from Russia.
The shift in Turkey’s oil sourcing highlights the ripple effects of Western sanctions on global โenergy markets and demonstrates โa willingness among key regional players to adapt to the changing geopoliticalโข landscape. this trend is expected toโ continue as international pressure onโค Russia’s energy sector intensifies.