What is the 'tricks' that can continue to send Russian crude oil to Europe?

As a sanction for Russia's invasion of Ukraine, the United States has decided to ban the import of Russian crude oil, natural gas and coal. However, in Europe, which relies heavily on Russia for energy, a ban on crude oil imports is still in the talks stage and no agreement has been reached. Furthermore, it has been pointed out that there is a 'tricks' that can continue to send Russian crude oil to Europe in the future.

Ukraine War: This Backdoor Keeps Russian Oil Flowing Into Europe --Bloomberg
https://www.bloomberg.com/opinion/articles/2022-04-08/ukraine-war-this-backdoor-keeps-russian-oil-flowing-into-europe

Shell to buy Russian oil blend'Latvian' to circumvent sanctions; stares at $ 5 billion loss
https://frontierindia.com/shell-to-buy-russian-oil-blend-latvian-to-circumvent-sanctions-stares-at-5-billion-loss/

According to Javanese columnist Javalberg, a major oil company, Shell said that the basic terms of the transaction were 'the goods sold and delivered by the seller are not native to the Russian Federation, but are loaded in the Russian Federation or from the Russian Federation. The definition of origin of the Russian Federation is 'if it is produced in the Russian Federation, or if more than 50% of its volume is composed of materials produced in the Russian Federation', with the statement that it was not shipped. It was changed to.

As a result, even if 49.99% of the crude oil to be loaded is from Russia, if 50.01% is from another country or region, it will be treated as not 'originating from the Russian Federation'. These crude oils are whispered by traders as 'Latvian blends', specifically, they are transported from the export base near St. Petersburg, Primorsk, to the port of Ventspils in Latvia, where they are blended. And that.

The following Google map does not show the sea route, so it is for reference only, but it is equivalent to transportation of about 900 km by land route.


Blending work is carried out not only in Latvia but also in the Netherlands and the high seas, and the name 'Latvian blend' is used to refer to crude oil including Russian ones regardless of whether or not the blend was actually performed in Latvia. It seems that it is being treated.

In addition, the Intercontinental Exchange has allowed traders to transport Russian diesel fuel, cautioning that in Antwerp, Rotterdam and Amsterdam in the Netherlands, 'products from any origin can be delivered.' It is said that it is.

Mr. Brass commented that the existence of such loopholes and backdoors reminds us of why sanctions are difficult. He points out that as Russia continues to sell crude oil, Europe will have more fuel supplies, lower energy prices and profits, and it is a moral issue to remain.