FX.co ★ Shell to buy Russian oil blend to bypass sanctions

Even amid tough sanctions, one can always find a loophole, especially when it comes to buying cheap oil. Apparently, this topic is relevant for many foreign companies. Thus, British oil company Shell has found a way to bypass anti-Russian sanctions so that it can still purchase Russian oil. The boycott of crude imports from Russia is a topic of heated debate in the West. Some countries support this move, while others warn that it will be hard to find an alternative supplier. So, when there is no alternative, companies are looking for a solution or a way to get around the ban. This is how a blend of different oil grades helped Shell circumvent the restriction. Now Shell will buy Russian oil that is mixed with a grade from another country. Technically, this oil is not of Russian origin since only 49.99% of a barrel comes from Russia, while the remaining 50.01% comes from other sources. The European oil giant had to make considerable changes to its general terms and conditions of contracts to allow the new scheme. According to one of such amendments, goods delivered by the seller shall not be of Russian origin and shall not have been loaded in or transported from Russia. “Goods shall be deemed of ‘RF origin’ if produced in RF or if 50% or more of their content (by volume) consists of material that was produced in RF,” the Shell management specified.