Turkey Shifts Oil Sources as Western sanctions Impact Russian Supply
Istanbul, Turkey – November 2, 2023 – Western sanctions targeting Russia are driving a important shift in turkey’s crude oil procurement, with major refiners actively diversifying away from Russian sources. the move, confirmed by industry sources and reported by Reuters, demonstrates the growing impact of international efforts to curtail russia’s oil revenues used to finance the war in Ukraine.
Turkey’s main oil refiners, including STAR (SOCAR turkey Aegean refinery) and Tupras, are increasing purchases of crude from alternative suppliers such as iraq, Kazakhstan, Brazil, and Angola. This diversification is coinciding with an overall decrease in Turkey’s total crude oil imports and a reduced percentage originating from Russia compared to the previous year.
STAR, owned by Azerbaijan’s SOCAR, recently secured four cargoes of crude oil from Iraq, Kazakhstan, and other non-Russian suppliers for delivery in December. This represents a considerable increase in non-Russian supply, ranging from 77,000 to 129,000 barrels per day, depending on cargo size. Previously, Russian crude accounted for almost all of STAR’s consumption in September and October.
Tupras, operating two refineries, is also actively diversifying, seeking non-Russian crude grades similar to Russia’s Ural crude, specifically Iraqi varieties. The company reportedly plans to eliminate Russian crude imports at one of its plants in the near future to ensure continued fuel exports to Europe without violating upcoming EU sanctions. While Tupras declined to comment, sources indicate the company has already begun diversifying, with its first cargo from Brazil and a second from Angola anticipated.
Data reveals a marked increase in Iraqi crude oil imports into Turkey, with shipments expected to reach 141,000 barrels per day in November, up from 99,000 barrels per day in October, and considerably higher than the year-to-date average of 80,000 barrels per day.
Between January and october of this year,Turkey imported approximately 669,000 barrels of crude oil per day.Of that total, 317,000 barrels per day (47 percent) came from Russia. This 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 energy markets and demonstrates a willingness among key regional players to adapt to the changing geopolitical landscape. this trend is expected to continue as international pressure on Russia’s energy sector intensifies.
