Sanctions loophole: How Russian oil gets into American cars
Created: 02/11/2022 16:43
By: Lisa Mayerhofer
Lukoil, Russia's second largest oil company, has not been sanctioned by the US.
(Archive image) © Horst Galuschka/Imago
The US is in an economic war with Russia.
According to a media report, however, Russia is using a loophole in US sanctions to sell its oil in the United States anyway.
Washington – Since the Russian army invaded Ukraine, Russia has been subjected to numerous sanctions by Western countries.
In addition to the US and EU oil embargo, in September the G7 countries decided on a price cap for Russian oil deliveries worldwide.
This was intended to limit Russia's ability to finance the war against Ukraine and stem the rise in global energy prices.
US Treasury Secretary on Oil Price Cap: "Accelerating Decline in Russian Economy"
The US expects that setting a price cap on its oil will significantly hurt Russia.
US Treasury Secretary Janet Yellen said in Washington on the price cap for Russian oil: "It will both affect Russia's ability to wage its unjust war in Ukraine and accelerate the deterioration of the Russian economy."
The G7 have taken a "decisive step forward" to achieve a dual goal of lowering global energy prices while depriving Putin of the revenue to fund his brutal war in Ukraine, Yellen said.
Lukoil brings Russian oil to the US via Italian refinery
So soon Russia will no longer be able to sell its oil profitably?
A Wall Street Journal
report
casts doubt on that.
Research by the US magazine shows that Russian oil is even used as fuel for American cars - quite legally, despite the oil embargo.
Because Russia uses a loophole in US sanctions to sell its oil.
Russia simply delivers crude oil to the refinery of the Russian oil company Lukoil in Sicily, reports the
Wall Street Journal
.
According to the magazine, up to 93 percent of Russian crude oil is used there for gasoline production.
Since the oil was refined in Italy, it is now considered an Italian product - and no longer Russian.
The fuel is then legally shipped to the United States and sold to various buyers.
The Wall Street Journal
reports that the gasoline made from Russian crude oil is mainly sold at gas stations along the US east coast .
US authorities declined to comment on the issue.
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Lukoil: CEO mysterious death after criticism of Ukraine
In addition, Lukoil, Russia's second largest oil company, has not been sanctioned by the US.
In March, Lukoil was one of the few Russian companies to call for an end to the Russian offensive in Ukraine.
Months later, CEO Ravil Maganov died under mysterious circumstances after falling from a Moscow hospital window.
After all, if the EU's oil embargo against Russia comes into force on December 5, Lukoil's loophole via the Sicilian refinery could be over.