Turkey is loading millions of barrels of diesel from Russia, which European Union countries can no longer buy due to sanctions.
Bloomberg writes about it.
The supply of diesel fuel to Turkey from Russia last month rose to the highest level in at least seven years, according to data compiled by the publication. This happened after the introduction of sanctions in early February, which prohibited EU countries from buying fuel from Russia, which is delivered by sea.
While Turkey was expected to increase its purchases of Russian barrels after the restrictions went into effect, the scale looks impressive.
Flows topped 10 million barrels in March, nearly 50% more than in February, and enough to meet the country's demand for at least two weeks. It is also potentially profitable as Turkey is likely to supply fuel at attractive prices.
"Turkey benefits the most because it gets access to troubled Russian gas oil/diesel," said Eugene Lindell, head of refining at consultancy Facts Global Energy, adding that it also means Russia finds a buyer for its supplies.
Since Turkey can still legally import diesel from Russia, traders could potentially import relatively cheap barrels to meet the country's energy needs. At the same time, Turkey's own production could be sold in the EU at a higher price.
Although Turkey's total imports rose in March thanks to supplies from Russia, its exports were relatively stable.
The impact of the recent devastating earthquakes on the country's diesel import needs is also difficult to quantify.
"The only logical conclusion for Turkey is that the refinery system is operating at a much lower level. Whether that's related to the earthquake remains to be seen," Lindell said.