Russia's Transneft, operator of the world's largest crude oil transportation network, has imposed limits on crude withdrawals. The company's storage facilities are overflowing due to weak demand for Russian oil.
Although oil imports from Russia are not covered by Western sanctions the Russian company Transneft is facing a lack of demand for crude. The exception is the U.S. embargo; the U.K. has also announced that it will impose a ban until 2023.
The company's warehouses are overfilled. The problem is so severe that the operator of the world's largest transmission network decided to impose limits on receiving oil from producers. As Reuters reports, the restrictions apply to oil companies that have not found buyers for their oil (so it would have to be stored by Transneft). Those who have a buyer for the crude can still ship it through Transneft's pipelines without problems.
Low demand for Russian oil (of the Urals type) is the effect of other sanctions - causing difficulties with payments, transport or its insurance, and the withdrawal of many Western companies from cooperation with Russian suppliers. As the agency reports, more than a dozen March shipments of Russian Urals crude have been cancelled or postponed.
Categories: World, Business
Tags: Russia, War in Ukraine, Oil
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