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(Bloomberg) — Turkey’s oil refiners have started cutting their purchases of Russian crude after the US sanctioned Moscow’s top two oil producers and are instead seeking extra barrels from nations including Iraq, Libya, Saudi Arabia and Kazakhstan.
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The move came after the US blacklisted state owned Rosneft PJSC and fellow Russian oil giant Lukoil PJSC, prompting Turkiye Petrol Rafineleri AS and Azerbaijan’s Socar-owned Star Rafineri AS to look for alternatives, according to people familiar with the matter. They spoke on condition of anonymity to discuss the sensitive issue.
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Turkey, the third-largest buyer of Russian oil, came under pressure from President Donald Trump administration in September — prior to the measures being announced — to curb oil imports from Moscow.
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The government in Ankara has determined that it now has to join Western allies in trying to curb purchases to pressure Russia into ending the war in Ukraine, said the people. Still, Turkey is not able to — and has no plans to — fully stop buying Russian oil, they said.
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However, Turkish refineries are increasingly seeking out crudes with similar gravity and density to Russian oil in line with Turkey’s policy to diversify energy resources, the people said. They didn’t say how big the drop might be.
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Oil traders are still evaluating what impact the sanctions on Rosneft and Lukoil will have. There are signs that Indian plants have scaled back, and some wariness from China, but the Trump administration is cautious about steps that could result in a major supply loss.
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Turkey is particularly interested in expanding exploration activities of its state-run TPAO in Libya, which could become a major supplier along with Iraq and Kazakhstan, they said. Some other countries from Africa to South America may also increase exports to Turkey, the people added.
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There is no evidence of a decline from tanker tracking yet, which shows that flows of Russia’s flagship Urals crude grade to Turkey rose in October from September. However, buyers have until Nov. 21 to complete purchases while remaining in compliance with the US sanctions.
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Tupras and SOCAR didn’t immediately respond to requests for comment. Turkey’s energy ministry didn’t respond to requests for comment.
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—With assistance from Sherry Su and Julian Lee.
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