RIYAHD, SAUDI ARABIA—The Kingdom of Saudi Arabia (KSA) was revealed as the single largest purchaser of Russian seaborne fuel oil and vacuum gasoil (VGO) by data released from the London Stock Exchange Group (LSEG) this week, with analysts pointing to soaring summer temperatures in the desert nation and a significant jump in fuel consumption.
The Saudi royal family has navigated a delicate balance between maintaining amicable diplomatic relations with Russia despite being widely considered a major non-NATO ally of the United States.
The two nations stand as second and third, respectively, in global petroleum production, behind the United States, according to Investopedia. However, Russia’s ability to export oil has been enormously hampered since the 2022 invasion of Ukraine and the application of near-global sanctions.
The Middle East and Asia have become the primary destinations for Russian oil exports after the European Union’s embargo took effect in 2023, as reported by Reuters.
The direct oil and VGO shipments from Russia’s Baltic Sea, Black Sea, and Pacific Ports into Saudi Arabia have jumped by 9% in June, totaling approximately 0.8 million tons.
Simultaneously, shipments to India and Turkey, also U.S. allies have decreased by 49%, and 33% respectively. Singapore, Senegal, and China have remained top destinations along with Egypt.
The Saudis have imported oil-based products from Russia in large volumes to reduce stress on their internal refineries and allocate more of their domestically produced oil to more profitable export destinations, according to analysts with Fox Business.
President Donald Trump threatened to impose 100% tariff penalties on nations that purchase Russian oil on Monday, with Senator Lindsey Graham telling reporters, “Trump is going to impose tariffs on people that buy Russian oil – China, India, and Brazil,” according to Economic Times.
“President Trump’s going to put a 100 per cent tariff on all those countries, punishing them for helping Putin.”
Graham warned the international community, “Here’s what I would tell China, India, and Brazil: If you keep buying cheap Russian oil to allow this war to continue, we’re going to tear the hell out of you and we’re going to crush your economy, because what you’re doing is blood money,”
It is unknown if Saudi Arabia will be included in the tariff; however, Graham added, “If you continue buying cheap Russian oil, we will impose tariffs and we will crush your economy.”
The Saudi royal family has navigated a delicate balance between maintaining amicable diplomatic relations with Russia despite being widely considered a major non-NATO ally of the United States.
The two nations stand as second and third, respectively, in global petroleum production, behind the United States, according to Investopedia. However, Russia’s ability to export oil has been enormously hampered since the 2022 invasion of Ukraine and the application of near-global sanctions.
The Middle East and Asia have become the primary destinations for Russian oil exports after the European Union’s embargo took effect in 2023, as reported by Reuters.
The direct oil and VGO shipments from Russia’s Baltic Sea, Black Sea, and Pacific Ports into Saudi Arabia have jumped by 9% in June, totaling approximately 0.8 million tons.
Simultaneously, shipments to India and Turkey, also U.S. allies have decreased by 49%, and 33% respectively. Singapore, Senegal, and China have remained top destinations along with Egypt.
The Saudis have imported oil-based products from Russia in large volumes to reduce stress on their internal refineries and allocate more of their domestically produced oil to more profitable export destinations, according to analysts with Fox Business.
President Donald Trump threatened to impose 100% tariff penalties on nations that purchase Russian oil on Monday, with Senator Lindsey Graham telling reporters, “Trump is going to impose tariffs on people that buy Russian oil – China, India, and Brazil,” according to Economic Times.
“President Trump’s going to put a 100 per cent tariff on all those countries, punishing them for helping Putin.”
Graham warned the international community, “Here’s what I would tell China, India, and Brazil: If you keep buying cheap Russian oil to allow this war to continue, we’re going to tear the hell out of you and we’re going to crush your economy, because what you’re doing is blood money,”
It is unknown if Saudi Arabia will be included in the tariff; however, Graham added, “If you continue buying cheap Russian oil, we will impose tariffs and we will crush your economy.”
For corrections or revisions, click here.
The opinions reflected in this article are not necessarily the opinions of LET
Comments