Türkiye doubled its imports of Russian oil this year, data showed on Monday, as the two countries are set for broader cooperation in business and especially energy trade in the face of western sanctions against Moscow.
Trade between Türkiye and Russia has been booming since spring as Turkish companies not banned from dealing with Russian counterparts stepped in to fill the void created by EU businesses leaving Russia after its invasion of Ukraine earlier this year. Russia calls its actions in Ukraine “a special military operation.”
Türkiye increased oil imports from Russia, including Urals and Siberian Light grades, beyond 200,000 barrels per day (bpd) so far this year compared to just 98,000 bpd for the same period of 2021, Refinitiv Eikon data showed.
Türkiye has criticized Moscow’s invasion and provided Ukraine with arms, including drones, which played a significant role in deterring a Russian advance early in the conflict, while refusing to join the West in imposing sanctions on Russia – a stance it says has helped its mediation efforts reap results. It also cites its reliance on Russian energy supplies.
President Recep Tayyip Erdoğan and his Russian counterpart Vladimir Putin met early in August and agreed to boost business cooperation.
Türkiye’s main refiners Tüpraş and Azerbaijan’s SOCAR’s STAR refinery significantly increased the intake of Russian Urals and Siberian Light oil this year, while decreasing purchases of the North Sea, Iraqi and West African grades, the data showed.
Over the last few years, STAR refinery increased purchases of Norway’s Johan Sverdrup and Iraqi oil grades, which are close in quality to Urals as Russian oil has been growing in price.
This year, Russian oil prices fell to historical lows against the dated Brent benchmark, while the North Sea and Iraqi oil grades prices improved.
STAR refinery is expected to purchase about 90,000 bpd of oil from Russia during January to August 2022 compared to 48,000 bpd during the same period of the last year, Refinitiv Eikon data showed.
Türpraş refineries will buy about 111,000 bpd of oil from Russia from January to August this year compared to just 45,000 bpd during the same period last year, according to the data.
“The choice for Türkiye’s refiners was obvious as they have no limits on Russian oil buying,” a trader in the Mediterranean oil market said, who declined to be named as he is not authorized to speak to the press.
He added that good Urals oil refining margins supported Turkish refiners’ profits.
