Singapore companies should manage own risks in Russian oil trade, minister says

A Singapore government official has warned locally based companies that they would have to consider and manage any potential impact on their business activities, transactions, and customer relationships when dealing with Russian crude oil and refined products.

Following sanctions by the EU, G7 and Australia on crude oil from Russia since last December and refined oil products since February 5th, along with Russia banning any deals that involve applying the price cap mechanism, life for oil-trading / carrying companies elsewhere has become complex.

Low Yen Ling, Singapore’s minister of state for trade and industry, said in a parliament session that “while Singapore is not a participant of the EU ban, companies and financial institutions in Singapore have been informed of the ban imposed by the EU and other countries, via circulars issued by relevant government agencies”.

About 7.6m barrels of Russian oil, including gasoil, naphtha and fuel oil, were scheduled to arrive in Singapore and Malaysia in February, Kpler data showed. That compared with a figure of 10.7m barrels the previous month.