Banned Russian oil now loaded off Aegean islands

Traders are moving Russian diesel cargoes to a new ship-to-ship (STS) loadings site in the northern Aegean Sea, as Western sanctions hit vessels carrying fuel loaded in Russian ports, LSEG and market sources data show.

Since a full European Union embargo on importing Russian oil products took effect in February 2023, traders have diverted diesel exports from Russian ports to Brazil, Turkey, countries in Africa, Asia and STS loadings. STS loadings make it harder for Western countries to trace trade in Russian oil products.

International waters off Greece’s Laconian Gulf became one of the most popular locations for STS loading of Russian oil products in Europe due to their proximity both to Russian ports and the Suez Canal, which offers access to Asian markets.

In April, Greece issued two notices for military exercises in the Laconian Gulf area, urging merchant and other vessels to avoid the area. Tankers carrying Russian oil products moved from waters off the southeastern Peloponnese mostly to Malta and Port Said in northern Egypt.

In July, at least four vessels carrying about 123,000 metric tons combined of diesel and gasoil loaded at Russia’s Black Sea ports of Taman and Tuapse went for transshipment to the neutral waters south of the Greek island of Chios, LSEG data show.

Three more vessels have been loaded in Tuapse with a total of about 100,000 tons of gasoil in August so far and are also heading toward STS south of islands in the north Aegean, according to the traders and shipping data.

The latest EU sanctions could be another reason for the pickup in STS activity, market sources said.

In June, EU countries adopted a 14th package of sanctions against Russia, which aimed to crack down on the so-called shadow fleet of foreign vessels transporting its oil products. Russia is exporting around 3.5 million metric tons per month of low-sulfur diesel and gasoil.

(Reuters)