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Saudi Arabia imported record volumes of discounted Russian fuel oil in June, a near 10-fold annual increase to meet summer power generation demand and maintain crude Reuters has reported that Saudi Arabia is buying record levels of Russian Oil and laundering it into the European market to evade various US sanctions. Moreover, ship China and Saudi Arabia were the top destinations for Russian seaborne fuel oil and vacuum gasoil (VGO) exports in July, traders said and LSEG data showed on Friday. Saudi Arabia is now buying roughly180,000 barrels of Russian diesel every day. Above, a refinery in Moscow. One o f the allies’ top goals after Russia invaded Ukraine Saudi Arabia is positioning itself to supply more oil to Europe as traditional buyers of Russian barrels look to diversify ahead of looming sanctions in early December and Saudi Arabia has imported on average 510,000 tonnes per month from Russia over the past three months, equivalent to around 3.4 million barrels, according to Kpler Saudi Arabia was the leading buyer of Russian seaborne fuel oil and vacuum gasoil (VGO) exports in November, LSEG data has revealed. According to Reuters Last month, the world’s largest crude oil exporter, Saudi Arabia, imported a record volume of 193,000 barrels per day (bpd) of fuel oil from Russia, a tenfold surge Saudi Arabia has become Europe's largest supplier of crude oil as the country sells its own supplies to the EU while bolstering its reserves by importing sanctioned

Saudi Arabia's Record Russian Oil Imports: Laundering Diesel to Europe?

Is Saudi Arabia buying Russian oil at record levels and laundering it onto the European market to evade sanctions? Recent reports suggest a complex scenario where Saudi Arabia is significantly increasing its imports of Russian fuel oil, potentially impacting global energy markets and sanctions enforcement.

Record Russian Oil Imports by Saudi Arabia

Saudi Arabia imported record volumes of discounted Russian fuel oil in June, a near 10-fold annual increase to meet summer power generation demand and maintain crude, according to Reuters. Last month, the world’s largest crude oil exporter, Saudi Arabia, imported a record volume of 193,000 barrels per day (bpd) of fuel oil from Russia, a tenfold surge. Saudi Arabia has imported on average 510,000 tonnes per month from Russia over the past three months, equivalent to around 3.4 million barrels, according to Kpler.

The Laundering Accusations: Russian Oil Flowing to Europe

Reuters has reported that Saudi Arabia is buying record levels of Russian Oil and laundering it into the European market to evade various US sanctions. Saudi Arabia is positioning itself to supply more oil to Europe as traditional buyers of Russian barrels look to diversify ahead of looming sanctions in early December. The crucial question is whether Saudi Arabia is using its own crude supplies for European consumption while replenishing its reserves with cheaper Russian oil, effectively circumventing sanctions.

Details on the Trade: Diesel and VGO

Ship tracking data indicates that China and Saudi Arabia were the top destinations for Russian seaborne fuel oil and vacuum gasoil (VGO) exports in July, traders said and LSEG data showed on Friday. Saudi Arabia was the leading buyer of Russian seaborne fuel oil and vacuum gasoil (VGO) exports in November, LSEG data has revealed. Saudi Arabia is now buying roughly 180,000 barrels of Russian diesel every day.

The Broader Implications

One of the allies’ top goals after Russia invaded Ukraine was to limit the flow of funds that could be used to finance the war. Saudi Arabia has become Europe's largest supplier of crude oil as the country sells its own supplies to the EU while bolstering its reserves by importing sanctioned Russian oil. The extent to which these transactions are circumventing sanctions and the long-term implications for global energy markets remain subjects of intense scrutiny.

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