Singapore-headquartered commodity trading company Trafigura has said it will meet requirements of the U.S. Treasury Department, which recently imposed sanctions on Rosneft Trading within 90 days provided, Economic Times reports.
“Trafigura is aware of the addition by the U.S. authorities of certain Rosneft entities to the Venezuela related designations and the associated general license. Trafigura complies with all applicable sanctions and will comply with the requirements of these latest rules within the wind-down timeline that has been set by the general license,” a company spokesperson said.
This week, the U.S. Administration announced sanctions against Rosneft Trading, a brokerage arm of Russian oil giant Rosneft, in connection with sales of oil from Venezuela. Washington provided 90 days to close out transactions with Rosneft Trading.
According to Reuters, the ban will likely hit some U.S. direct purchases of Urals, typically a medium sour blend, from Rosneft Trading and could make it more difficult for refiners in Asia and Europe to buy from the firm. Washington advised non-U.S. firms to seek guidance should they be unable to wind down dealings with the trading firm within 90 days.
European refiners could look to source replacement crudes from West Africa, Brazil and the U.S. Gulf Coast, if Urals become expensive, traders said. Urals is the most common export grade from Russia and a benchmark for medium sour crudes in Europe. It could create new demand or support prices for alternatives such as Colombia’s Vasconia and Castilla and Basrah heavy, they said.