Greek shipowners are making a comeback in the Russian Urals oil market as prices have dipped below the G7-imposed price cap of $60 per barrel. This development allows them to provide necessary transportation and insurance services while adhering to existing sanctions. According to three trading sources, the price cap established by the Group of Seven nations prohibits Western companies from insuring or transporting Russian oil sold above this threshold at loading ports. Since December 2022, many Western shipowners have avoided involvement in the Russian oil sector due to relatively high oil prices, which kept Urals prices close to or above the cap.
As a result, tankers operated by firms from countries not participating in the price cap policy have primarily been responsible for transporting Russian oil during this period. In April, several Greek shipping firms, including Minerva Marine, Dynacom, and TMS Tankers, began supplying vessels for Russian oil shipments. These companies had not engaged in the Russian oil market in the previous year, as noted by the sources. However, they did not respond to Reuters’ requests for comments.
The decline in global oil prices this spring, largely attributable to escalating international trade tensions, has resulted in Urals prices falling significantly below the $60 mark on a free-on-board basis at Russian ports. Recent calculations by Reuters indicated that Urals shipments from Baltic ports and Novorossiisk were valued at just over $50 per barrel as of April 24. Additionally, data from LSEG reveals that 15 out of 25 tankers loaded with Urals oil from ports like Primorsk, Ust-Luga, and Novorossiisk in April were managed by Greek shipping companies.