Turkish oil giant Tupras reduces Russian oil purchases amid US sanctions

Türkiye’s largest oil refiner, Tupras, is cutting back on its imports of Russian crude and fuels to comply with U.S. sanctions, making it the latest buyer to show caution in dealings with Moscow according to a report by Bloomberg.

Tupras limits Russian oil imports

Starting Feb. 27, Istanbul-based Tupras, officially known as Turkiye Petrol Rafinerileri AS, will no longer accept shipments that do not comply with the oil price cap set by the Group of Seven (G7) nations.

This decision follows a wide-reaching set of sanctions imposed by the outgoing Biden administration on Jan. 10, targeting Russia’s oil exports, tankers, producers, and its key Moscow-based insurer.

A source with knowledge of the matter, who spoke on the condition of anonymity, confirmed the change, adding that Tupras had already stopped purchasing above-cap barrels after the sanctions took effect.

However, deliveries of previously purchased shipments will be accepted until the February deadline.

Impact of US sanctions on Russian oil trade

The Biden administration’s sanctions targeted 161 tankers, multiple oil producers, and several trading firms involved in Russia’s oil export network.

One of the most significant measures was the blacklisting of Ingosstrakh Insurance Co., a Moscow-based company that provided coverage for many Russian crude shipments.

By adhering to the G7 price cap—$60 per barrel for crude, $100 for premium fuels, and $45 for discounted fuels—Tupras aligns itself with Western powers seeking to curtail Moscow’s revenue streams.

The Kremlin has previously stated that it will not conduct business with entities complying with the price cap.

Türkiye’s role in global oil trade

Türkiye controls the Bosphorus and Dardanelles straits, vital shipping routes through which more than $300 billion in trade flows annually.

The government has emphasized the importance of ensuring vessels have proper insurance, aligning with broader regulatory compliance requirements.

Tupras has been a key buyer of Russian crude, averaging 290,000 barrels per day between June and January. After the European Union largely ceased Russian oil imports in response to the 2022 Ukraine invasion, Moscow turned to alternative buyers, including Türkiye, India, and China.

However, since the Jan. 10 sanctions, both India and China have exhibited caution in handling sanctioned shipments.

Reduction in Russian oil shipments

From Feb. 27 onward, Tupras will cease accepting Russian petroleum shipments priced above the G7 price caps.

In 2023, Russia accounted for 65% of Türkiye’s total crude and refined product imports, with Tupras alone purchasing approximately 180,000 barrels per day of Russian Urals crude—around 5.5% of Russia’s total seaborne crude exports.

Additionally, about 90,000 barrels per day of refined petroleum products, mainly diesel, were delivered to Tupras terminals in Türkiye, according to Vortexa Ltd. data.