Western Sanctions Loophole Exposed by 'Russian Crude Oil' Rebranding... "It's Okay at 49.99%"

Shell sells 'Latvia Blend' mixing 50.01% foreign crude with 49.99% Russian crude
WP "Energy trade between Europe and Russia secretly thriving"

[Image source=Yonhap News]

[Asia Economy Intern Reporter Kim Se-eun] Western countries' strong economic sanctions targeting Russia are showing loopholes, such as "rebranding" Russian crude oil for sale.

Bloomberg reported that Shell, Europe's largest oil company, is selling its petroleum products mixed with less than 50% Russian crude oil.

They mix 50.01% crude oil from other countries with 49.99% Russian crude oil, which results in the Russian content being set below 50%.

Bloomberg explained that this petroleum product, called "Latvian Blend," is not formally considered a Russian product, allowing it to evade Western sanctions.

The name Latvian Blend comes from the process of unloading and mixing oil at the port of Ventspils in Latvia, Russia.

In principle, there is no problem as the Russian crude oil mixing ratio does not exceed 50%, but it is controversial as it could lead to ethical issues.

Last month, the Ukrainian Ministry of Foreign Affairs strongly protested after learning that Shell purchased Russian Ural crude oil at a low price, leading Shell to officially apologize.

Furthermore, The Washington Post (WP) reported that energy trade between Europe and Russia is happening secretly, stating that Europe has purchased about $38 billion (approximately 47 trillion won) worth of Russian energy since the Ukraine crisis.

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