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SOCAR Pause Russian Crude Purchases for Turkish Refinery

OIL

Azerbaijan's SOCAR has paused purchases of Russian crude oil for its Turkish refinery amid EU sanctions on shipping and crude, sources told Reuters.

  • Turkish refineries, including SOCAR's STAR plant, had increased purchases of Russian crude after Russia's invasion of Ukraine.
  • SOCAR was reviewing the situation in order to remain compliant with Western sanctions, sources said.
  • Congestion in the Turkish straits has been increasing since the introduction of the EU/G7 oil price cap.
  • A backlog of over 26 tankers is holding more than 23mn barrels of oil from Kazakhstan which is unable to pass the Bosphorus and Dardanelles straits.
  • US and UK officials are pushing for Turkey to reconsider the proof-of-insurance requirement, especially given that cargoes from Kazakhstan are not subject to sanctions.
  • The Turkish Transport Ministry said on Thursday it would remove ships without insurance letters from its waters.

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