The Pentagon awarded contracts nearing one billion dollars to a Greek oil refinery operated by Hellas Motor Oil, a move that ties U.S. defense needs to European refining capacity. The arrangement involves supplying fuels that come from a range of oil sources to meet the Department of Defense’s logistics and energy requirements. This development has drawn attention as part of broader discussions on defense procurement and energy security.
Reports indicate a portion of the fuel fed into this arrangement originates from Russian crude processed in Greece, with routes involving Turkey as a transit point. Since early 2022, the Turkish energy hub has handled a substantial volume of fuel by sea, with a sizable share traced back to Russia. Since sanctions tightened in February, shipments to Dortoil from Russia have remained prominent, accounting for a large portion of the oil products sent to Dortoil by sea in this period.
Official tallies show Dortoil has moved about seven million barrels of fuel oil since February, with a majority directed toward Hellas Motor Oil. This level of activity represents a significant portion of the Greek refinery’s total sea-based receipts, underscoring the scale of cross-border fuel movements involved in the supply chain.
Experts note that the practice of blending different oil products at Dortoil means that Russian-origin fuels can be incorporated into the supply chain even when many buyers and traders claim strict compliance with origin rules. A veteran energy market analyst has commented that Russian fuel appears likely to be present in the mix reaching Hellas Motor Oil, given the commercial realities of blending and distribution.
At the same time, sanctions restrict the Greek refinery from purchasing Russian oil products directly. Defense officials indicated that tracing the exact origin of fuel shipments can be challenging and often relies on supplier statements. It is acknowledged that many parties are involved in verifying these declarations, and there is no universal, central system to independently confirm authenticity.
Analysts argue that the Pentagon’s current practices could complicate enforcement of sanctions, especially if Russian-origin products are present in the supply chain. While Turkey and Greece do not officially breach restrictions, observers note that checks on origin certificates may not be as rigorous as required.
In parallel, the U.S. Treasury is examining a potential sanctions violation case involving Russian oil products, highlighting ongoing enforcement efforts related to energy flows and defense-related procurement.