Russia shipping first ever oil cargo to Brazil
- September 14, 2023
- Posted by: Quatro Strategies
- Categories: Americas, Europe, Oil & Gas, Sanctions & Regulation
Russia has shipped its first crude oil cargo to Brazil, marking an attempt to diversify its customer base amid limited options due to U.S. and EU sanctions. European sanctions and price cap policies, imposed in response to Russia’s invasion of Ukraine, have significantly constrained Russia’s oil exports to the West.
Russia has become increasingly reliant on countries like India and China as key buyers of its crude, often selling oil at discounted prices due to sanctions. Brazil, a member of the BRICs alliance along with India and China, has now emerged as a new destination for Russian crude.
Unlike India and China, which are major importers of Russian oil, Brazil is a significant oil producer and exporter itself. However, Brazil does occasionally import crude to meet its domestic refining needs.
Lukoil, a major Russian oil company, is reportedly shipping 80,000 metric tons of Varandey crude oil to Brazil on the Stratos Aurora vessel from the Murmansk port to the terminal of Madre de Deus port in Brazil, which is operated by Transpetro, a subsidiary of Petrobras.
Varandey Blend is a type of light sweet crude oil, and it differs from the heavier Russian oil grades that have been primarily shipped to India and China in recent months.
The identity of the buyer for this cargo has not been disclosed, and Lukoil, Petrobras, and Brazil’s Ministry of Mines and Energy have yet to comment on the matter. This development underscores Russia’s efforts to expand its oil export markets in response to the sanctions imposed by Western countries.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
Samsung SDI agrees on seven-year deal to supply EV batteries to Hyundai
Samsung SDI, a major South Korean battery manufacturer, has entered into a seven-year agreement to supply Hyundai Motor with electric vehicle (EV) batteries starting in 2026. This marks a significant partnership between the two companies, representing the first battery supply…
China planning to raise $40 billion for its semiconductor industry
China is planning to launch a new state-backed investment fund aiming to raise approximately $40 billion for its semiconductor sector, as part of its ongoing efforts to catch up with global rivals, particularly the United States, in the semiconductor industry. This new fund, part of the China Integrated Circuit Industry Investment Fund, is expected to be the largest of the three funds launched by the organization.
China unveils new clean energy fund guidelines to boost green economy
China’s new guidelines for managing special clean energy funds mark a significant step in solidifying its transition towards a greener economy. Published by the finance ministry, these rules will govern the allocation of funds for renewable energy and the clean utilization of fossil fuels from 2025 to 2029, with the potential for an extension beyond this period. The move underscores Beijing’s commitment to sustaining its clean energy momentum, which played a critical role in China’s economic expansion in 2024.
For the first time, clean energy contributed over 10% of China’s GDP in 2024, with total sales and investments in the sector reaching 13.6 trillion yuan ($1.9 trillion). This growth was driven by investments in solar, electric vehicles (EVs), and batteries—industries now collectively referred to as the “new three.” These sectors have overtaken real estate in economic contribution, further highlighting China’s strategic pivot away from its traditional property-driven growth model.
