Exxon Mobil Corp. avoids chartering oil tankers that previously carried cargoes from Russia, and in a move joins the same camp as Shell Plc in pressuring owners to decide whether or not to serve Moscow’s interests.
The largest oil company in the US, starting Dec. 5, asked shipowners to ensure that the tankers leased to Exxon were not carrying crude oil cargoes that were either Russian, originated in Russia, or were made by a person associated with Russia, a Clause seen by Bloomberg shows. Otherwise, Exxon could terminate the charter.
A spokeswoman for Exxon declined to comment.
The approach is similar to that of Shell, whose first preference is ships that have not carried Russian crude in their last three cargoes.
Moves by such large firms only increase the pressure on owners to choose between Russian and non-Russian interests.
Continue reading: Shippers of goods are approaching the insurance cliff for ships bound for Russia
Already, shipping lines that intend to ship the country’s barrels can only get industry-standard insurance and a variety of other G-7 services if the cargo they ship costs $60 or less per barrel. The measures included a clause barring companies paying more than $60 from accessing essential EU services transporting Russian cargo for 90 days.
The Exxon clause does not apply to Kazakhstan’s CPC oil as long as the seller is not Russian or affiliated with Russia and there is a Kazakh certificate of origin.
Exxon’s mandate extends to Russian oil products as of February 5, 2023, with the same exception as above. Then more G-7 sanctions will come into effect, impacting refined fuels markets.
The Group of Seven’s actions have sparked the emergence of a so-called dark tanker fleet expected to serve Russia’s interests. Measures like Exxon’s and Shell’s make it harder for these ships to get back into non-Russian business.
