The world’s largest independent oil trader, Vitol Group, intends to cease trading crude and products originating from Russia by the end of the year.
According to a Bloomberg email from Vitol, volumes of Russian oil handled by Vitol “will decline significantly in the second quarter as current term contractual obligations decline.”
As stated in an email from Vitol, “current term contractual obligations will reduce significantly in the second quarter.”
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According to the Geneva-based company, it will not engage in any new transactions with Russia related to crude and products. Since Russia invaded Ukraine, the company has explained that its purchases were part of pre-existing contracts.
The announcement comes after an adviser to Ukrainian president Volodymyr Zelensky requested that Vitol and other merchant traders stop doing business with Russia’s fossil fuel industry to stop the flow of cash that is financing the invasion.
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- Governments and shareholders are increasingly pressuring companies around the world to sideline Moscow.
- Exxon Mobil Corp., Shell Plc and BP Plc have announced plans to cut ties with Russia as they take steps to stop dealings with the country.
- In the meantime, many European banks have curtailed trade financing for Russian commodities.
- Russian oil cargoes have also been purchased by refiners in India and China, either directly from Moscow or through traders.
- Energy trader, Vitol Group earned a record-breaking $4 billion in net profits last year.
- Trading rivals, Trafigura Group and Mercuria Energy Group Ltd. have also posted stellar results during a period when many fuels hit all-time highs, stoking inflation that forces central banks to raise rates.