New Oil Traders Fill the Void as Major Names Abandon Moscow Ties

With major oil traders reducing their involvement in Russian crude exports, the market is now assessing who will take their place.

Among the contenders is a medium-sized trader from Geneva with strong connections to Moscow, several smaller firms that are becoming more active, and some new players, including one named Bellatrix—a reference to a villain from the Harry Potter series.

Russia’s ability to find intermediaries, ships, and buyers for its crude is crucial, influencing both the global oil market and the country’s economic health. A drop in Russian exports could tighten supply while simultaneously impacting Moscow’s revenue.

The emergence of various traders indicates that, for the time being, Russia is adapting to the withdrawal of major firms like Trafigura Group and Glencore. Vitol Group, the leading oil trader globally, has also stated it will not engage in new Russian business, forecasting a decline in its activities in the upcoming quarter.

Litasco, a unit of Moscow-based Lukoil, has reportedly become the largest handler of Russia’s Urals grade, according to port reports. The company chartered tankers to transport a significant volume of crude—14 million barrels in April and 8.6 million barrels in the current month—significantly outpacing any competitors.

While there are currently no legal restrictions on transporting Russian oil, phased bans have been announced by the US and the UK, with Europe likely to follow suit soon.

Litasco has refrained from commenting on trading specifics but affirmed its commitment to adhering to all applicable laws and regulations. The company is taking measures to lessen the impact of the geopolitical situation on its operations and customers.

A substantial portion of Litasco’s oil likely comes from Lukoil. In the past, European refiners would have typically employed tankers to handle these shipments, but many have withdrawn from the Russian market since the onset of the conflict, placing additional burdens on logistics.

In Asia, where Russia exports over 350 million barrels of crude annually, significant changes are underway. Shandong Port Group, which has strong ties to Chinese refiners, recently chartered a tanker for transporting ESPO oil from Russia to China, highlighting how local firms are stepping up involvement in imports after major traders retreated.

Several Chinese oil firms and an international trading house have also ceased loading these shipments. Analysts noted a trend where established traders, including state-owned entities, are publicly announcing timelines to exit Russian oil trading, a move that follows many shipping companies backing away from such transactions.

A particularly notable newcomer in the transport of Urals crude is Bellatrix, which has recently shipped nearly 3 million barrels. Market reports indicate that traders are unfamiliar with the firm, suggesting its rapid emergence in a shifting landscape.

Additionally, Livna Shipping, based in Hong Kong, is increasing its participation in moving Russian ESPO crude, having chartered eight vessels in May alone, a significant rise from their activity in previous months.

Other new players include Coral Energy, which has indicated Russian operations on its platforms.

In contrast, the absence of major traders like Glencore in recent shipments is noteworthy. They have refrained from engaging in new contracts while honoring existing obligations. Similarly, Trafigura’s activity has also declined, with only 200,000 tons of Urals lined up for transport in May compared to over a million tons last month.

Vitol continues to be a significant shipper but has also pledged to reduce its involvement, signaling a broader trend that suggests oil volumes may diminish considerably in the near future as contractual commitments taper off.