Companies in Singapore will need to think about and manage the potential impact of trading in Russian crude oil and refined products on their business operations, transactions and customer relationships, a government official said on Friday.
Russia’s oil trade faces quite a few restrictions imposed by the West and Moscow within the wake of the war in Ukraine.
The European Union has imposed bans on imports of Russian crude oil and petroleum products, while the Group of Seven countries, the EU and Australia have agreed to ban the usage of Western-provided marine insurance, finance and brokerage services for Russian crude oil transported by sea at prices above agreed levels. .
In turn, Russia banned all transactions involving the usage of the worth ceiling mechanism.
“Although Singapore will not be covered by the EU ban, corporations and financial institutions in Singapore have been informed of the ban imposed by the EU and other countries through circulars issued by relevant government agencies,” said Low Yen Ling, Singapore’s Minister of State for Trade and Industry, in the course of the parliament session .
Sources say Russian crude is mixed in Singapore and re-exported
Sources say Russian crude is mixed in Singapore and re-exported
Low was responding to an issue on how the EU bans would impact the import, trade, storage, mixing and handling of Russian petroleum products in Singapore, including at terminals and facilities in Singapore, in addition to within the Outer Port Waters (OPL).
Singapore’s sanctions and restrictions on Russia are targeted and include export controls on specific products, similar to military goods and a few dual-use goods, in addition to financing of such products, Low added.
Russia is increasing oil exports to Asia, especially China and India, as Western countries avoid trade with Moscow.
Kpler data shows that about 7.6 million barrels of Russian oil, including diesel, naphtha and heating oil, are expected to reach in Singapore and Malaysia in February, up from 10.7 million barrels in January.
Offshore storage facilities within the Singapore Strait mix Russian crude with other supplies to hide the oil’s origins, opening the door to ship insurance and financing that might otherwise be banned under sanctions.
