Exclusive-Turkey buys more non-Russian oil after latest Western sanctions, sources say

Turkish oil refiners, including SOCAR Turkey Aegean Refinery (STAR) and Tupras, are significantly increasing purchases of non-Russian crude in response to recent Western sanctions on Russia, signaling a diversification of supply similar to India. STAR, which previously relied almost entirely on Russian crude, has secured four non-Russian cargoes for December delivery, while Tupras is boosting Iraqi and other non-Russian grade imports and may cease Russian crude processing at one refinery to ensure compliance with EU sanctions for fuel exports. This shift by a major buyer, which sourced 47% of its crude from Russia year-to-date, underscores the growing impact of sanctions on global oil trade flows and Russia's export revenues.

Analysis

Turkish oil refiners, including SOCAR Turkey Aegean Refinery (STAR) and Tupras, are significantly increasing purchases of non-Russian crude in response to recent Western sanctions, a strategic shift mirroring actions by Indian counterparts. This diversification, previously unreported, signals a growing impact of sanctions on global oil trade flows and Russian export revenues.

STAR, which relied on Russian crude for virtually all of its 210,000 bpd intake in October and September, has secured four non-Russian cargoes for December arrival, amounting to 77,000-129,000 bpd from Iraq, Kazakhstan, and other producers. Tupras is also boosting non-Russian grade imports and plans to completely phase out Russian crude at one refinery to ensure compliance with EU sanctions for fuel exports, while continuing Russian processing at another.

This move contributes to Turkey's broader crude import diversification, with Iraqi crude imports projected at 141,000 bpd in November, up from 99,000 bpd in October. While Russian crude constituted 47% of Turkey's 669,000 bpd imports from January to October, this strategic pivot by major refiners indicates a structural change in sourcing, potentially impacting crude pricing and regional supply dynamics.

Key Decisions for Investors

• Monitor crude oil trade flow shifts and their impact on global supply/demand dynamics, particularly for non-Russian grades.
• Assess the long-term implications for Russian oil export revenues and the effectiveness of Western sanctions.
• Evaluate energy companies with diversified supply chains or exposure to alternative crude sources for potential strategic advantages.