Russian oil and product ship-to-ship (STS) operations near Greece's Kalamata have experienced a significant decline in May, as indicated by data from LSEG and traders. This decrease follows Greek naval advisory prohibiting ship traffic off the south eastern Peloponnese coast. STS operations have grown in prominence since the Group of Seven and European Union implemented measures to limit the sale of Russian crude and oil products. Consequently, the majority of Russian crude is now being directed to Asia, necessitating the use of larger tankers for longer voyages.
The international waters off the Laconian Gulf have emerged as a key location for Russian oil and product STS operations in Europe due to their proximity to Russian ports and the Suez Canal, facilitating access to Asian markets. In an unusual move, Greece has issued Navtex notices, warning of military exercises in the Laconian Gulf area throughout May and extending the advisory until June 24. There's speculation that this advisory might be extended further, according to a Greek defence ministry official.
STS transfers in open sea areas beyond the Laconian Gulf region are challenging, potentially contributing to the decline in STS activity. Tightened regulations surrounding ship-to-ship transfers in Spain's Ceuta have already led to the relocation of Urals oil STS operations to Egypt's Damietta and Port Said ports, incurring additional costs. Similarly, Russian oil product STS operations have shifted from the south eastern Peloponnese to Malta.
Furthermore, tankers loaded with Russian high-sulphur diesel and vacuum gasoil have been offloaded to other tankers at the Port Said Anchorage, with cargoes destined for Fujairah and Asian countries. Notably, there are no plans for further Russian Urals oil supplies to the Laconian Gulf in May, following the latest cargo shipment to India earlier in the month. (ET Infra & Reuters)
