FX.co ★ Turkey serves as Kremlin’s ‘pit stop’ for exporting sanctioned Russian oil to EU

Russian authorities have found a way to circumvent EU and US sanctions. Moscow has discovered a loophole to export Russian oil products to the EU. The bloc appears to be buying Russian energy that is re-exported from Turkey. What a tortuous path!

According to recent studies, Moscow has earned €3 billion by diverting exports through Turkish ports over the past 12 months since the EU imposed a ban on Russian oil products. Such a scheme is still in operation. This loophole in European sanctions allows the import of so-called "blended" fuel, provided it is labeled as non-Russian.

Thus, Turkey has become a key transshipment hub that the Kremlin uses to omit Western sanctions. "Turkey has emerged as a strategic pit stop for Russian fuel products rerouted to the EU, generating hundreds of millions in tax revenues for the Kremlin's war chest," analysts note.

A key document in this process is a certificate of origin issued in Turkey. Since it is illegal to import fuel with Russian labels, Ankara reissues old certificates with new Turkish ones. As a result, Russian oil products with new documents are shipped from Turkish ports to European countries.

Earlier, Western insurers reportedly expressed growing concern about a shadow market expansion due to anti-Russian sanctions.