Major oil trading houses are preparing to curb purchases of Russian oil from mid-May, following the latest round of sanctions and market guidance reported by Reuters. The move signals a broad shift in how global energy buyers approach Russian crude as governments tighten financial and trade restrictions and buyers assess risk amid a volatile supply landscape.
Trafigura, the Singapore-based trader, has publicly stated its intention to fully align with the sanctions regime from May 15 and to reduce its trade volumes with Russia. The company indicated it will scale back Russian crude and related flows in line with the evolving regulatory framework, with the exact pace depending on contract logistics and regulatory clarity, according to Reuters sources familiar with the matter.
Meanwhile, Vitol Group, a Swiss-Dutch energy trader, signaled it would trim Russian oil purchases in the second quarter as existing contractual obligations taper off. While the company did not provide specific dates, the implied plan is to wind down exposure to Russian crude while honoring ongoing commitments and regulatory expectations, Reuters reported.
Reuters also observed that the European Union has not imposed a blanket ban on all Russian oil across every member state, citing ongoing challenges in some markets where alternatives are limited. Nevertheless, European buyers are actively reducing reliance on Russian supplies to align with sanctions promises and to safeguard access to the international financial system amid mounting pressure to diversify energy sources.
In a related note, Shell indicated it would adjust its sourcing strategies to ensure that Russian oil purchases occur only when a portion of contracts includes oil from non-Russian origins. This approach reflects an effort to diversify intake and reinforce compliance with evolving sanctions rules while maintaining steady supply where feasible.
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