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
EU supercharges Global Gateway to rival China’s BRI with a €400 billion push
Brussels is trying to turn Global Gateway from a slogan into a balance sheet. Ursula von der Leyen says the EU now expects to mobilise more than €400 billion by 2027 for projects across the Global South, an upgrade from the original €300 billion plan, and is opening a new “Investment Hub” to give companies a single front door for pitching deals.
The expanded target, announced at this year’s Global Gateway Forum, reframes the initiative as a platform for bankable projects in energy, transport, education and research, and crucially as a vehicle to lock in partnerships for critical minerals the EU needs for its green transition and to pare back reliance on China.
Australia invites allies to buy equity stakes in critical minerals
Australia is testing a new model of resource security that blends alliance politics with balance-sheet discipline. Canberra is prepared to sell equity-style stakes in a forthcoming national stockpile of critical minerals to a small circle of partners, initially the United Kingdom, with interest from the United States and France.
The concept is straightforward but novel: allied governments or their export credit agencies would provide cash up front and commit to draw specified volumes over time; in return, they would hold a contractual claim on a defined share of the reserve’s inventory. Instead of a traditional, government-only hoard that sits idle until a crisis, Australia’s reserve would function as a club asset, pre-financed by its users and rotated to match industrial demand.
Germany’s new hydrogen import strategy targets sustainable energy future
Germany has adopted a strategy to import hydrogen, aiming to secure a sustainable energy supply and facilitate the transition to a lower carbon economy. This strategy includes plans for importing hydrogen produced through the electrolysis of water using renewable electricity, known as green hydrogen, as well as…