Turkey Reduces Russian Oil Imports, Seeks New Suppliers

Turkey is increasingly distancing itself from Russian crude oil, with imports from Russian Baltic and Black Sea ports hitting a near 18-month low. This shift comes as global oil supplies tighten and prices rise, prompting Ankara to seek new sources.

Historically, Turkey has been a significant importer of Russian oil, ranking as the third-largest global buyer after India and China. Since the start of the war in Ukraine, Turkey has spent substantial amounts on Russian energy imports, including 81.67 billion euros on crude oil, 36.28 billion euros on gas, and 13.4 billion euros on coal, according to data from the Finnish institute CREA.

The primary grade of Russian oil imported by Turkey is the highly sulfurous Urals. However, recent data indicates a slowdown. Kpler, a firm tracking ship movements, reported that Urals imports to Turkey were averaging around 161,000 barrels per day in May, down from 189,000 barrels per day in January-April and significantly lower than the 302,000 barrels per day seen in May 2023.

Traders suggest that Turkey's reluctance stems from its accustomed practice of purchasing Russian oil at a substantial discount. With current high prices, Turkish buyers are reportedly unprepared to pay the elevated costs. Additionally, stronger demand from Asian markets, particularly India, has reduced the availability of Russian Urals for Turkish buyers. This has led to an increase in Turkey's imports of CPC blend crude, which originates from both Russia and Kazakhstan, as the country diversifies its energy portfolio.

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Turkey has grown accustomed to buying Russian oil with a large discount. Therefore, Turkish customers were not prepared to buy this grade at such high price levels.