SOCAR stops buying Russian oil at its refinery in Turkey

The sources told Reuters that Azerbaijan’s state oil company SOCAR has stopped buying Russian crude oil from its refinery in Turkey. The sources said this is a sign that Western sanctions are beginning to affect trade outside of Europe and the United States as well.

The EU embargo on Russian crude oil imports by sea came into force on December 5. However, Turkey did not participate in the maximum price agreement. Therefore, Russian companies could continue to sell oil to the country without being subject to this restriction.

PURCHASES INCREASE

In addition, Turkish refineries, including SOCAR’s STAR facility with a production capacity of 214,000 barrels per day, increased their purchases of Russian crude after the Russia-Ukraine war. This was a more lucrative trade for Russian manufacturers than in Asia, due to the proximity of the countries.

However, in the new situation, SOCAR started not buying Russian oil at its STAR refinery in Aliağa, complying with Western sanctions. A source who provided information on the matter said SOCAR is reviewing the situation to comply with Western sanctions.

According to data from the financial tracking platform Refinitiv Eikon, the amount of oil Russia sold to Turkey in November fell to its lowest level since February.

RUSSIAN OIL TO TURKEY DECREASED

According to Refinitiv Eikon ship-tracking data, Russian Ural oil bought by Turkey reached 300,000 barrels per day from August to October, while this figure fell to 170,000 barrels per day in November.

While the STAR refinery had bought 170,000 barrels of oil per day in the previous three months, this number dropped to 73,000 in November.