Just yesterday, the EU and the G7 nations announced their mechanisms to cap Russian oil sales at $60 per barrel. Now, information is surfacing to suggest that Russia has already found a workaround: use its own tankers. Shipping broker Braemar estimates that Moscow, which relies heavily on foreign tankers to transport its crude, has added more than 100 ships this year, through direct or indirect purchases. Energy consultancy Rystad says Russia has added 103 tankers in 2022 through purchases and the reallocation of ships servicing Iran and Venezuela, two countries under western oil embargoes.
"Russia is not saving any money by using its own tanker fleet. "
I wouldn't be so sure. I own a business. There are functions I outsource that I could do myself for less, but I don't, because I'd rather not be bothered handling all those details. Now if I were cut off from the vendors who are capable of doing those things for me, I'd find a way to do them myself, and it would probably cost me less.
But let's assume you're correct and that it costs more. How much more? $10/barrel? $20? If it's less than the spread between the $60 "cap" and the whatever Russia can sell the for in markets that aren't abiding by the cap, then using her own fleet of ships would still be net win for Russia, no?
"Russia is not saving any money by using its own tanker fleet. "
I wouldn't be so sure. I own a business. There are functions I outsource that I could do myself for less, but I don't, because I'd rather not be bothered handling all those details. Now if I were cut off from the vendors who are capable of doing those things for me, I'd find a way to do them myself, and it would probably cost me less.
But let's assume you're correct and that it costs more. How much more? $10/barrel? $20? If it's less than the spread between the $60 "cap" and the whatever Russia can sell the for in markets that aren't abiding by the cap, then using her own fleet of ships would still be net win for Russia, no?