Saudi Arabia Now Launders Russian Oil Into European Market To Evade US Sanctions

Key Points:

• Saudi Arabia is buying record levels of Russian oil and laundering it into the European market to evade US sanctions.
• Ship tracking data confirms that traders are stocking fuel at the Fujairah hub in the UAE and in Saudi Arabia.
• This comes after the EU banned the import of Russian oil products in December and February, resulting in shipments arriving elsewhere.

Saudi Arabia buys record levels of Russian oil and launders it into the European market to evade US sanctions.

According to a report from Reuters, Saudi Arabia has been buying record levels of Russian oil and laundering it into the European market to evade various US sanctions. As a result, ship tracking data showed traders stocking the fuel at the Fujairah hub in the UAE and in Saudi Arabia. The Middle East is positioning itself as a prominent industrial fuel supplier to Europe and Asia, as Russian oil only adds to the output of refineries in Saudi Arabia and Kuwait.

The report notes that at least 500,000 tonnes of fuel were discharged at Fujairah and Saudi Arabia in March alone. Ship tracking data from Refinitiv, Kpler, and Vortexa shows that there were almost no Russian arrivals a year earlier. The Middle East took up slightly over 10% of Russia’s exports, loading in February and March.

This development comes after the European Union banned the import of Russian oil products in December and February, forcing the shipments to arrive elsewhere. The move by Saudi Arabia to launder Russian oil onto the European market is seen as a way to avoid various US sanctions.

As the Middle East continues to position itself as a prominent supplier of industrial fuel, experts will be watching to see how this affects the global oil market. Despite the ongoing efforts to transition to renewable energy sources, oil remains a critical component of the global economy and any disruptions could have significant consequences.

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