Shipment company

Small oil traders now earn $20m from a single shipment of Russian crude – 33 times more than before the war

  • Russian oil is currently trading at a $25 discount to other varieties such as Brent and WTI.
  • Small commodity traders are buying and transporting Russian crude after the big companies exit the market.

Small oil traders transfer Russian crude and earn $20 million from a single shipment – a massive increase from the roughly $600,000 they previously pocketed Russiathe invasion of Ukraine.

They jumped in to fill the void left by the release of industry giants like glencore and Trafigura of Russia, according to The Wall Street Journal.

Russian Ural oil is currently trading at just under $91 a barrel. That’s a $25 discount for Crude Brentwhich is priced at $116 a barrel.

These opportunistic traders do not violate EU sanctions. As European companies are banned from doing business with the state-backed oil giant Rosneft, the EU has not yet imposed a general ban on the import of Russian oil.

This opened the window for small traders to step in, with Russia still exporting 3.6 million barrels of oil a day by sea, according to the goods data and analytics company kpler.

Paramount Energy and Commodities is a company that profits from the purchase of Russian crude. The little-known Geneva company trades 163,000 barrels a day on average, according to Petro-Logistics.

Paramount founder Niels Troost is now working from Dubai to avoid European sanctions, The Journal said. He also did business with sanctioned Russian oligarch Gennady Timchenkowho is Vladimir Putin’s former tennis partner.

“All of these transactions took place before the sanctions were imposed and were halted immediately when the sanctions were put in place,” Troost said.

Read more: Russia rakes in billions in oil revenue, but lacks buyers. Here’s how the country could handle its unwanted oil – and what that means for the energy market.