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
UK announces £553 million investment in nuclear deterrent and energy infrastructure
UK Prime Minister Rishi Sunak has announced significant investments in Britain’s nuclear deterrent and energy infrastructure, emphasizing the importance of safeguarding the industry and protecting the country. The government plans to allocate £353 million ($445 million) to apprenticeships and skills…
Chinese exporters flee U.S. as Trump tariffs hit breaking point
The escalating U.S.-China trade war, reignited by President Donald Trump’s sweeping tariffs on Chinese imports, is forcing a growing number of Chinese exporters to make the difficult decision to abandon the American market altogether. For many small- and medium-sized manufacturers who survived the first round of Trump-era tariffs and spent years cultivating U.S. consumer demand, the latest 145% tariff wall represents a financial breaking point.
The fallout is already visible across China’s manufacturing hubs. Assembly lines that once ran six or seven days a week are now idle for nearly half that time. Factories producing everything from yoga pants to kitchen appliances are pausing shipments to the U.S., offloading excess inventory at steep markups, and pulling out of American warehouses to cut costs.
Vietnam faces decline in rare earths production, contrary to ambitious plans
The U.S. Geological Survey (USGS) has recently revised down its estimates for Vietnam’s rare earths output, signaling a significant decrease despite the country possessing the world’s second-largest deposits of these critical minerals. The USGS data, published in late January, highlights that Vietnam…