Latest news with #oiltrade
Telegraph
20-05-2025
- Business
- Telegraph
Etonian financier ‘procured ships for Putin's shadow fleet'
An Eton-educated accountant has been sanctioned by the Government over procuring ships for Russia's 'shadow fleet'. John Michael Ormerod, a 74-year-old shipping industry veteran, furnished Moscow with 25 vessels that helped it avoid Western sanctions on global oil sales, according to an investigation by the Financial Times last year. The ships helped Russia earn at least $7.2 billion, the newspaper reported, carrying about 120 million barrels of oil. Announcing fresh sanctions on the fleet, a statement from the Foreign Office said: 'This action [against Mr Ormerod] imposes a personal cost on those who are supporting Russia's trade in oil.' Donald Trump has also threatened to impose 'secondary' sanctions on nations that purchase Russian oil, should Vladimir Putin not commit to peace with Ukraine. However, he pushed back on the idea of sanctioning Russia itself during a call with Ukrainian president Volodymyr Zelensky and five European leaders on Monday, Axios reported. Sources who were on the call – which came hours after he spoke with the Russian president – said some European leaders were 'shocked' and 'surprised' at the US president's response. In December 2022, the UK, US and EU blocked companies in the G7 from transporting Russian oil unless it was sold at a discount. This prompted Russia to establish a shadow fleet of about 400 old tankers registered in countries outside the organisation. The rusty fleet, flagged under nations including Gabon and Liberia, has allowed Moscow to skirt the impact of the sanctions intended to slash revenues from its energy exports. The ships carry vast cargoes of oil to willing purchasers in India, China and elsewhere. Efforts to sanction the vessels have been hampered by the difficulty of determining their ownership, which is often obscured through offshore corporate structures. According to the Financial Times, Mr Ormerod created a network of offshore companies in the Marshall Islands to buy the 25 ships. The $700 million needed to fund the purchases was provided by Eiger Shipping DMCC, a Dubai-based subsidiary of Russia's state-owned Lukoil, for the purposes of chartering the vessels. Although Lukoil is under Western sanctions, Eiger Shipping DMCC is not. Dubai-based companies are also not bound by the G7 sanctions so long as they do not use Western financing or services. In a statement to the Financial Times last year, Mr Ormerod's lawyers said he was approached by Eiger Shipping in late 2022 to purchase ships for their 'general trade'. He did 'extensive due diligence' to ensure the proposed purchases would not violate sanctions, they added. Since the war began, Russia has earned around £760 billion from sales of oil, gas and coal, according to the Centre for Energy and Clean Air (CREA), a Helsinki-based think tank. That is more than double the £300 billion provided and pledged to Ukraine by Europe and the US. Western sanctions on the shadow fleet have started to curtail its operations. Before leaving office, Joe Biden sanctioned 155 tankers, effectively knocking them out of business. On Tuesday, the UK announced sanctions on 18 vessels, adding to the 100 or so already targeted. In March, Russia saw a 36 per cent month-on-month increase for oil on tankers registered in the G7, subjecting its profits to the $60 Western price cap. Moscow has begun to respond more aggressively. Last week, Russian fighter jets briefly entered Estonian airspace after one shadow fleet tanker was detained. A Greek tanker was later seized after briefly entering Russian territorial waters on a pre-approved route out of the Gulf of Finland. 'This is definitely connected to the fact that we have started to harass Russia's shadow fleet,' said Margus Tsahkna, Estonia's foreign minister. In its statement on Tuesday, the Foreign Office added that it was working with allies to review the $60 oil price cap. The EU, which imposed its 17th round of sanctions on Russia on Tuesday, is likely to propose a $50 cap, according to recent reports. The current benchmark for a barrel of Brent crude stands at $65. US leadership, analysts argue, would be critical in ratcheting up sanctions to effectively crippled Russia's energy export business. However following his one-to-one call with Putin on Monday, the US president gave little sign he intends to follow through with his previous 'secondary' sanctions threats, despite the Russian dictator rebuffing his calls for a 30-day ceasefire. He described the 'tone' and 'spirit' of the call as 'excellent'. In a later statement posted on his X account, Mr Zelensky said: 'It is crucial for all of us that the United States does not distance itself from the talks and the pursuit of peace.' 'If the Russians are not ready to stop the killings, there must be stronger sanctions,' he added.
The National
16-05-2025
- Business
- The National
Donald Trump given sample of 'highest quality oil there is' by Emirati hosts
US President Donald Trump has been presented with a capsule of domestically produced oil by the head of the UAE company Adnoc. Dr Sultan Al Jaber, managing director and group chief executive of Adnoc, told Mr Trump the oil was Murban, one of the highest quality grades of crude oil. 'The highest-quality oil there is on the planet and they only gave me a drop of it," Mr Trump joked. "So I'm not thrilled. But it's better than no drop.' Dr Al Jaber, Minister of Industry and Advanced Technology, told the US President before a meeting of business leaders in Abu Dhabi on Friday: 'This has become a globally recognised benchmark." Murban is the UAE's flagship crude oil grade. Supplied by Adnoc, it is considered one of the lowest carbon-emission crude oils in the world. It is a premium-grade, light, sweet crude that is popular among Asian buyers, who are increasingly dominating the global trade in oil. Fujairah port on the UAE's east coast accounts for about 75 per cent of Murban exports, with the rest shipped out from Ruwais port, according to S&P Global. The Murban futures contract made its debut on the Ifad in March 2021 as the UAE's capital set its sights on becoming a commodities hub. Ifad, at the Abu Dhabi Global Market, is an independent futures exchange for the trade of Murban futures contract derivatives. The Murban futures contract allows oil from Abu Dhabi to become a freely traded global commodity, filling a void in the trading and pricing of crude from the Middle East. Total traded volume for Murban crude oil futures more than doubled to 6.04 million lots in 2024, surging by 3.75 million lots year-on-year, the highest since the launch of the contract on March 29, 2021, data from the exchange showed. Murban is Adnoc's largest crude by volume, accounting for about two million barrels per day of production capacity. It typically sees baseload demand from certain refineries in Japan and South-east Asia, but in recent months has faced stiff competition from arbitrage barrels from the US, S&P Global said.
Fox News
13-05-2025
- Business
- Fox News
Trump hits Iran's pocketbook as he dangles a carrot in Middle East speech
Print Close By Brooke Singman Published May 13, 2025 The Trump administration sanctioned nearly two dozen firms operating in Iran's illicit international oil trade, as President Donald Trump delivered remarks in the Middle East – tempting the Islamic Republic with a "much brighter future" should it come to a nuclear agreement with the United States. The sanctions, announced by the Treasury Department's Office of Foreign Assets Control Tuesday, target firms that operate in Iran's oil trade. TRUMP TARGETS IRANIAN OIL WITH SANCTIONS, INCREASING PRESSURE ON ISLAMIC REPUBLIC TO MAKE DEAL ON NUKES Officials said the Iranian government allocates billions of dollars worth of oil annually to its armed forces to supplement budget allocations, underwriting the development of ballistic missiles and unmanned aerial vehicles, and financing regional terrorist groups. Treasury Department officials said Iran's Armed Forces general staff and its main commercial affiliate, Sepehr Energy Jahan Nama Pars Company, continue to establish front companies and rely on buyers and facilitators to enable their sanctioned oil trade. Sepehr Energy often carries out its oil shipments through a series of "deals" between multiple front companies that it owns or controls, according to the Treasury Department, creating the "illusion of non-sanctionable trade between separate entities." "Many of the entities involved in Sepehr Energy's oil shipments are part of an elaborate system of oil smuggling and money laundering, directly controlled by or acting on behalf of Sepehr Energy," the Treasury Department said, adding that it also controls Hong Kong-based front companies and uses them to "broker and receive shipments of Iranian oil delivered to independent so-called teapot refineries in China." 4TH ROUND OF US-IRAN TALKS ENDS AS TRUMP SET TO EMBARK ON HISTORIC MIDDLE EAST TOUR The sanctions came shortly after Trump delivered a speech in Riyadh, Saudia Arabia, urging Iran to take a "new and a better path." The Trump administration is in talks with Iran for a new nuclear deal. The president, during his speech, though, warned of "massive maximum pressure" if Iran does not come to an agreement. "As I have shown repeatedly, I am willing to end past conflicts and forge new partnerships for a better and more stable world, even if our differences may be profound," Trump said. "If Iran's leadership rejects this olive branch... we will have no choice but to inflict massive maximum pressure, drive Iranian oil exports to zero." VANCE PREVIEWS US-IRAN NUCLEAR TALKS, SAYS TRUMP 'OPEN' TO SITTING DOWN WITH RUSSIANS, CHINESE IN FUTURE "Iran can have a much brighter future, but we will never allow them to threaten America and our allies with terrorism or a nuclear attack," Trump said. Trump had announced a 60-day time frame to reach an agreement with Iran over its illegal atomic weapons program. The first U.S. negotiating session with Iran commenced April 12. Trump's special envoy Steve Witkoff met with Iranian officials for a fourth round of nuclear talks over the weekend. The nuclear talks were "difficult but useful," Iranian Foreign Ministry spokesperson Esmail Baghaei said. A U.S. official, speaking on condition of anonymity to discuss the closed-door negotiations, offered more, describing the talks as being both indirect and direct, The Associated Press reported. An "agreement was reached to move forward with the talks to continue working through technical elements," the U.S. official said . "We are encouraged by today's outcome and look forward to our next meeting, which will happen in the near future." CLICK HERE TO GET THE FOX NEWS APP The Trump administration has said the flawed 2015 Obama-era Joint Comprehensive Plan of Action (JCPOA), also known as the Iran nuclear deal, did not prevent Iran from building an atomic bomb. Before leaving for his trip to the Middle East, Trump reiterated his stance on Iran's nuclear goals. "You can't have a nuclear weapon, but I think that they are talking intelligently," Trump said. "We're in the midst of talking to them, and they're right now acting very intelligent. We want Iran to be wealthy and wonderful and happy and great, but they can't have… nuclear weapons. Very simple. So I think they understand that." A day before the start of talks, Iranian Supreme Leader Ali Khamenei welcomed chants of "Death to America" in Iran's capital, Tehran. "Your judgment is right," Khamenei told a crowd of supporters who called for the destruction of the U.S. The Associated Press contributed to this report. Print Close URL
Zawya
13-05-2025
- Business
- Zawya
India approves more Russian insurers to provide marine cover
India has approved three Russian insurers, including a unit of top lender Sberbank , to provide marine cover to ships arriving at Indian ports, a government notification shows, helping Moscow maintain oil supplies to its key market. India is the top buyer of Russian seaborne oil after China since Western nations shunned purchases and imposed sanctions on Moscow for its military action in Ukraine. (Editing by Louise Heavens)
Reuters
13-05-2025
- Business
- Reuters
India approves more Russian insurers to provide marine cover
NEW DELHI, May 13 (Reuters) - India has approved three Russian insurers, including a unit of top lender Sberbank ( opens new tab, to provide marine cover to ships arriving at Indian ports, a government notification shows, helping Moscow maintain oil supplies to its key market. India is the top buyer of Russian seaborne oil after China since Western nations shunned purchases and imposed sanctions on Moscow for its military action in Ukraine.
