EU sanctions are adjusted to unblock Russian oil deals with third countries

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Model petrol pump is seen in front of EU and Russian flag colors in this illustration taken March 25, 2022. REUTERS/Dado Ruvic/

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BRUSSELS, July 22 (Reuters) – Russian state-owned companies Rosneft and Gazprom will be able to send oil to third countries under an adjustment to EU sanctions adopted by member states this week aimed at limiting risks to global energy security.

Large trading houses such as Vitol, Glencore and Trafigura as well as large oil companies such as Shell and Total have stopped trading Russian oil for third parties, citing EU sanctions, including restrictions on insurance.

The purchase of Russian seaborne crude from EU companies and its export to third countries is allowed, but under adjustments to sanctions against Russia that came into force on Friday, payments related to such shipments would not be prohibited.

“To avoid potential negative consequences for food and energy security around the world, the EU decided to extend the exemption from the ban on entering into transactions with certain state-owned entities with respect to transactions for agricultural products and the transport of oil to third countries,” the EU said in a statement Thursday.

Trading house sources had said that EU restrictions would have led to China and India buying oil through smaller private traders and Russian oil trade migrating into gray areas with weak insurance against accidents and being handled by older ships.

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Reporting by John Chalmers Editing by Alistair Bell

Our standards: Thomson Reuters Trust Principles.

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