April 29, 2022
I HAVE ALWAYS DEPENDED ON THE KINDNESS...:
Oil Middlemen Fueled Putin's War Machine. Now They're Getting Out. (Joe Wallace and Eliot Brown, April 28, 2022, WSJ)
Russia built a self-proclaimed fortress around its economy in the run-up to war--but there was a crack. Moscow depended on foreign middlemen to ferry its most strategic and lucrative export around the world: oil.Now the most-important middleman, Trafigura Group, is joining several competitors in cutting off Russian giant Rosneft Oil Co. from global oil markets. In a high-stakes move that goes farther than official Western sanctions, the Swiss commodities trader plans to stop exporting Rosneft's crude altogether. It will cut its business with the state producer to a sliver of prewar levels, supplying only some refined products such as diesel into Europe, according to a spokeswoman.Trafigura and other traders were already poised to lose a big chunk of their Russian business on May 15, when sanctions go into effect that bar them from selling Rosneft oil to countries outside the European Union and Switzerland. In also deciding to cut exports to Europe, long the biggest buyer of Russian oil, they are getting ahead of EU countries that are discussing a full ban.Vitol, Trafigura's biggest competitor in oil, also plans to retreat from the Russian market, according to people familiar with the decision. Glencore PLC, a mining and trading giant with a long history in Russia, suspended its contract to export Rosneft oil in March, people familiar with the decision said.
Posted by Orrin Judd at April 29, 2022 12:00 AM
