Swiss trader Trafigura intends to withdraw from the Vostok Oil project in Russia.

“The Group has ceased all oil trading with Russian entities under sanctions until the European Union and Swiss decisions take effect on May 15, 2022. The volumes of petroleum products from Russian sanctioned entities have also been substantially reduced to exclusively supply the core fuels required by European customers,” the company said in a statement.

“Trafigura will continue to fully comply with all subsequent sanctions packages. In addition, the group has frozen its investments in Russia and announced its intention to withdraw from the Vostok Oil project, in which it holds a 10% stake,” the trader notes.

“Looking ahead, we see no easing in the challenging market conditions. Global supply chains remain disrupted and the geopolitical situation will remain unstable,” the company believes.

“Rosneft” in 2020 began a large-scale development of fields in the Taimyr as part of the implementation of the project “Vostok Oil”. It includes the assets of the company in the north of the Krasnoyarsk region – 52 license areas, including Vankor, Suzun, Tagul, Lodochnoye fields, as well as new fields – Payakhskoye (with reserves of more than 1 billion tons of oil) and Zapadno-Irkinskoye (0.5 billion tons of oil). The potential for production of liquid hydrocarbons there may reach 115 million tons per year. “Rosneft” promised to ship 30 million tons of oil from “Vostok Oil” via the Northern Sea Route as early as in 2024.

As reported, 10% of Vostok Oil is listed on the Swiss Sibi Enterprises Sarl, a stake held by Trafigura (bought from Rosneft in 2020 for €7 billion). In addition, a consortium of Vitol S.A. and Mercantile & Maritime Energy Pte. Ltd. (75% – Vitol, 25% – MME), the Russian oil company sold 5% of the project for 3.5 billion euros, they are listed on Amur Investments. The remaining 85% of Vostok Oil is owned by Rosneft’s subsidiary RN-Trade LLC.

Trafigura has been a long-standing partner of Rosneft, trading the Russian company’s oil. In addition, Trafigura, in a consortium with Rosneft and UCP Trafigura, owns India’s Nayara Energy Limited (formerly Essar Oil), which owns a 20 million-ton refinery with a refining depth of 95.5%. However, Trafigura was also planning to sell its stake in the Indian company.