Euronav suspends services for Russian customers

Belgian tanker firm Euronav says it has suspended operations for Russian customers amid various sanctions imposed on Russia by Western nations.

PHOTO: A Euronav capesize tanker. Euronav

In its latest financial report, Euronav said the war in Ukraine has largely impacted freight and bunker cost.

Self-imposed sanctions by oil traders, refiners and shippers of Russian products have shifted the market to a longer tonnage and different cargo specification. The shift in trade flows has increased tanker miles.

Euronav says rise in bunker prices makes long-haul voyages expensive, and has negative impact on business.

The company claims that due to the lack of Russian-origin HSFO in Europe and Mediterranean region, prices have seen upward pressure and Hi5 spreads could get narrower.

Russian fuel oil imports to the ARA hub, Gibraltar Strait ports, and the Canary Islands were almost all HSFO In 2021, when Russia exported around 10 million mt of HSFO to the region, according to Vortexa. And around 40% of fuel oil imports into the ARA came from Russia. These flows have now slowed.

Declining fuel oil imports from Russia, and several suppliers and buyers shunning Russian oil altogether, have contributed to tighten supplies in the region.

Euronav says that banning services for Russian customers will have little impact as they contribute to just under 5% of the business. But it acknowledges that it is difficult to quantify the future fallout from the ongoing war in Ukraine.