Russia's oil trade faces multiple restrictions imposed by
the West and Moscow in the wake of the Ukraine war.
The European Union has imposed bans on Russian crude and oil
products imports while the Group of Seven nations, EU and
Australia agreed to ban the use of Western-supplied maritime
insurance, finance and brokering for seaborne Russian oil priced
above pre-set levels.
In turn, Russia has banned any deals that involve applying
the price cap mechanism.
"While Singapore is not a participant of the EU ban,
companies and financial institutions in Singapore have been
informed of the ban imposed by the EU and other countries, via
circulars issued by relevant government agencies," said Low Yen
Ling, Singapore's minister of state for trade and industry in a
parliament session.
Low was responding to a question on how the EU bans would
affect the import, trading, storage, blending and handling of
Russian oil products in Singapore, including Singapore-based
terminals and facilities as well as at its Outside Port Limits
(OPL) waters.
Singapore's sanctions and restrictions on Russia are
targeted and cover export controls on specific items such as
military goods and some dual-use goods, as well as the financing
of such items, Low added.
Russia has been increasing its oil exports to Asia,
especially China and India, as western countries eschew trade
with Moscow.
About 7.6 million barrels of Russian oil, including
gasoil, naphtha and fuel oil are due to arrive in Singapore and
Malaysia in February, Kpler data showed, down from 10.7 million
barrels in January.
Offshore storage facilities in the Singapore Strait are
blending Russian oil with other supplies to obscure the oil's
origins, clearing the way for ship insurance and financing that
would otherwise be banned under the sanctions.
(Reporting by Trixie Yap and Muyu Xu; Editing by Florence Tan
and Kim Coghill)
By Trixie Sher Li Yap and Muyu Xu
SINGAPORE, Feb 24 (Reuters) - Companies in Singapore
will have to consider and manage any potential impact on their
business activities, transactions, and customer relationships
when dealing with Russian crude oil and refined products, a
government official said on Friday.
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