The Biden administration’s “farewell” sanctions package, one of the largest since the start of a full-scale war, threatens nearly 15% of Russia’s oil exports.
Shares of Russian oil companies fell on the Moscow Exchange for a second day in a row amid the tightening of US sanctions, which saw them fall under Gazprom Neft, Surgutneftegaz and more than 180 tankers of the Russian shadow fleet. This was reported by The Moscow Times on Monday, January 13.
Yes, sharing Gazprom Neft fell in price by 2.5% to 588 rubles per unit. In less than two trading days, the company’s capitalization decreased by 34 billion rubles. During the same period, Surgutneftegaz lost 29 billion rubles in capitalization, and its ordinary shares fell in price by 3.4% and are trading at 23.2 rubles.
At the same time, shares fell 4.9% Rosneftwhere a major subsidiary falls under sanctions RN-Vankorproject operator Vostok oil. Stock Rosneft was traded at 544.8 rubles per unit, and the company’s capitalization decreased by 298 billion rubles, according to exchange data.
In total, three oil companies, which provide two-thirds of all oil production in Russia, fell in price by 361 billion rubles, or $3.54 billion at the official exchange rate of the Central Bank of the Russian Federation. In addition, shares fell sharply in Monday’s trading Sovcomflot: they lost 4.5% and are trading at 86.81 rubles. Due to the introduction of sanctions, the largest Russian tanker company lost 9 billion rubles in capitalization.
The “farewell” sanctions package of the Biden administration, which became one of the largest since the beginning of a full-scale war, threatens about 15% of Russian oil exports, or up to 800 thousand barrels per day, analysts estimate.
According to Bloomberg, India and China, the largest buyers of Russian oil, which account for more than 80% of all Russian oil exports, have stopped accepting sanctioned tankers at their ports. Refineries in both countries are looking to replace Russian oil in the Middle East and Africa, traders report to Reuters. To continue selling oil, Russian companies will likely increase discounts: the discount on the Urals grade to Brent may increase, and tanker cargo will become more expensive.
On January 10, the US Treasury announced major sanctions against Russia’s oil and gas sector. The new restrictions cover more than 400 individuals and organizations in Russia’s energy sector that directly or indirectly fund the Kremlin’s war machine. On the same day, Great Britain joined the sanctions.
Market analysts believe that the restrictions will affect Russian oil supplies to China and India.
Source: korrespondent
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