- At least two tankers were loaded with Russian oil and departed for U.S. destinations, according to information obtained by American Shipper.
- Still, the possibility of keeping the contracts and taking on Russian oil may force buyers into a potential profits-or-people dilemma.
- Recently, Shell faced a backlash after purchasing Russian oil and announced afterwards that it would donate profits to humanitarian groups working to help the Ukrainian people.
The Biden administration gave oil corporations a 45-day option on Tuesday to phase out current Russian oil contracts as reported by Freight Waves.
Oil dumping
According to information gathered by American Shipper, at least two tankers laden with Russian oil sailed for US destinations.
The Vinjerac, which sailed Thursday and is scheduled to arrive at the Port of New York & New Jersey on March 25, and the Gazpromneft NORD, which loaded on Friday, are the two tankers, according to MarineTraffic data. Its expected arrival in the United States (unidentified port) is on May 16, after the window closes, so it will be unable to lawfully dump its oil.
MarineTraffic identified a total of 12 tankers as part of the “flotilla” transporting Russian oil to the United States.
Oil trading companies
“We can see these tankers are currently travelling at 11-12 knots on average — which is, in general, a normal speed for a commercial tanker on this journey,” said Fotini Tseroni, spokesperson at MarineTraffic.
The Tom Louise at the Port of New York & New Jersey and the Seoul Spirit in Delaware are two of the tankers that have already arrived in the United States and are discharging oil.
Phillips 66, Total’s trading division, Atlantic Trading and Marketing Inc., oil trading company Vitol, PBF Energy, and Valero are among the buyers, according to Maritime sources.
These oil contracts may have been cancelled despite the fact that they were signed before Russia’s invasion of Ukraine. Tanker cargoes can also be swapped en route, so the Russian oil may not wind up in the United States.
Tanker ship arrival
Even after the ships reach the U.S., there is no guarantee they will be able to discharge the Russian oil.
The International Longshore and Warehouse Union (ILWU) announced last week that its dockworkers “will not load or unload any Russian cargo coming into or going out of all 29 U.S. West Coast ports.”
“With this action in solidarity with the people of #Ukraine, we send a strong message that we unequivocally condemn the Russian invasion,” said ILWU International President Willie Adams in a Twitter thread.
The tanker ship Balla left Russia on Feb. 21 and is scheduled to arrive at the Port of Los Angeles on April 8.
Profits or people
Still, the possibility of keeping the contracts and taking on Russian oil may force buyers into a potential profits-or-people dilemma.
The 45-day window now accelerates the decision-making process.
Recently, Shell faced a backlash after purchasing Russian oil and announced afterwards that it would donate profits to humanitarian groups working to help the Ukrainian people.
Meanwhile, there is a growing movement on Capitol Hill targeting big oil profits during this war.
And 10 other lawmakers are introducing a bill that would tax large corporations quarterly.
Applicable sanctions
A Phillips 66 spokesperson said the company is “fully compliant with all sanctions levied on Russia by the U.S., European Union, United Kingdom and other nations.
We are working to ensure the security of supply for both our refineries and our customers, all the while abiding by all applicable sanctions.”
The spokesperson said Phillips 66 is donating $1 million to humanitarian relief efforts in Ukraine and added that the company is matching employee contributions to eligible organizations supporting relief efforts.
A Valero spokesperson said the company had “discontinued purchasing Russian oil well before any government sanctions prohibiting Russian petroleum imports were imposed.
We are in the process of winding down any pre-invasion purchases and all such cargoes will be in compliance with new government sanctions regulations.”
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Source: Freight Waves
