Because of the Western sanctions, Russian oil is available on the world market at significant price reductions. Turkey seizes the opportunity and increases imports from Russia sharply.
Turkey has more than doubled its imports of Russian oil this year. Imports have so far averaged more than 200,000 barrels (159 liters each) per day after 98,000 in the same period last year, according to data from financial services provider Refinitiv.
Despite the war of aggression against Ukraine, NATO member Turkey has not yet sanctioned Russia, arguing that it is dependent on Russian energy supplies. In early August, President Vladimir Putin and his Turkish counterpart Recep Tayyip Erdogan also agreed to strengthen economic cooperation.
According to the data, the most important Turkish refineries have processed significantly more Russian oil of the Urals and Siberian Light varieties. At the same time, purchases of North Sea, Iraqi and West African oil grades decreased. Russian oil is currently much cheaper than that from the North Sea or Iraq. "Turkish refiners' decision was obvious as they have no restrictions on buying Russian oil," said a trader.
The price difference between Russian oil and that of other producers is huge. Because of the Western sanctions, Russia has to sell the oil elsewhere and thus at a significant discount. A barrel of the Russian Urals variety normally costs around 60 cents less than a barrel of the North Sea Brent variety. A barrel is currently around $23 cheaper than the competition from the North Sea and from OPEC.
