The total value of their imports was EUR 74.8 bln over the twelve months, and since the EU crude oil ban until one year after the start of the war, these five laundromat countries have made up 70% of Russia’s crude oil exports. In the year following the start of the invasion, seaborne imports of Russian crude oil into China, India, Turkey, United Arab Emirates (UAE) and Singapore increased by 140% in volume terms, compared with the 12 month period before the invasion.In the lead up to sanctions on Russian oil, China significantly increased its oil products exports, reaching 2.9 million tonnes in Q4 of 2022 which was 150% higher than the quarterly average in 2022. China’s monthly exports of oil products to Europe and Australia spiked in late 2022, far above historical levels.The highest proportions of imported oil products into oil price cap coalition countries were diesel (29%), jet fuel (23%) and gasoil (13%). Australia purchased EUR 8.0 bln worth in the 12 month period since Russia’s invasion, followed by the USA (EUR 6.6 bln), the UK (EUR 5.0 bln) and Japan (EUR 4.8 bln). Among the price cap coalition, the largest importer of oil products from the laundromat countries was the EU, whose imports amounted to EUR 17.7 bln.We call these five countries that have increased purchases of Russian oil and “launder” it into products shipped to countries having sanctioned Russian oil the “laundromat” countries. Price cap coalition countries’ imports of refined oil products from these five countries rose by +10 million tonnes (+26%) or EUR 18.7 bln (+80% in value terms) in the year since Russia’s invasion compared to the prior year. One year on from Russia’s invasion of Ukraine, the price cap coalition countries increased the imports of refined oil products from China (+3.6 million tonnes or +94%), India (+0.3 million tonnes or +2%), Turkey (+1.8 million tonnes or +43%), UAE (+2.6 million tonnes or +23%) and Singapore (+1.8 million tonnes or +33%).This is a major loophole that can undermine the impact of the sanctions on Russia. However, these price cap coalition countries have increased imports of refined oil products from countries that have become the largest importers of Russian crude. The EU, most of G7 and Australia have banned or limited imports of Russian crude oil and oil products, leading to a significant fall in Russia’s oil prices and export revenues.Our report takes an in-depth look at the laundering of Russian oil by countries importing Russian crude and then selling oil products on to price-cap coalition countries that have sanctioned Russian oil. At the same time, these countries, which are all part of the price-cap coalition whose objective is to limit Russia’s revenues from fossil fuel exports, have increased imports of refined oil products by leaps and bounds from the countries that have become the largest importers of Russian crude oil. Well into the second year of the full-scale invasion of Ukraine, the EU, most of the G7 countries, and Australia have cracked down on their imports of Russian crude oil and oil products. Western countries that have largely banned the imports of oil from Russia imported EUR 42 billion worth of oil products from countries that have increased imports of Russian crude oil in the 12 month period since Russia’s invasion.
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