As Russia seeks to offset the impact of Western sanctions on the country following the invasion of Ukraine, President Vladimir Putin has demanded that buyers of gas sold by the Gazprom group pay in rubles.
Rosneft followed Putin’s orders to Gazprom and demanded a 100% advance payment and the conversion of the payment into rubles for the purchase of its oil.
Last week, Rosneft offered 6.5 million tons of crude oil by auction for loading in May-June, requesting full prepayment in rubles for the first time. However, it failed to secure sales because the terms proved difficult to meet, Reuters sources said.
Even so, Rosneft has demanded the same conditions for oil volumes, Reuters sources said, citing tender documents.
The company also offered buyers the option, where it is not possible to pay in rubles, pay in Chinese yuan, US dollars, euros, UAE dirhams and Turkish lira, sources said. These options, however, would be subject to negotiation and could be rejected by Rosneft.
Tenders have been invited for about 2 million tons of fuel oil and diesel, 1.4 million tons of naphtha and 1 million tons of marine diesel, traders added.
The auctions ended on April 25, and the results should be announced no later than May 13, sources said.
Most of Rosneft’s oil products loaded in 2022 have been sold to buyers on term contracts, but many of them have recently decided to reduce their purchases of Russian oil products as a precaution against Western sanctions and payment and transportation issues. .
The European Union has not yet imposed a ban on imports of oil products from Russian refineries, but is considering options to reduce Russian oil imports as part of sanctions for invading Ukraine, which Russia calls a “special military operation.”
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