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Greece's largest companies halt oil transportation from Russia - Reuters

Greece's largest companies halt oil transportation from Russia - Reuters Major Greek companies cease oil transportation from Russia (Getty Images)

Three major Greek shipping companies have recently ceased the transportation of Russian oil to avoid U.S. sanctions, reports Reuters.

The affected Greek freight shippers include Minerva Marine, Thenamaris, and TMS Tankers.

"The development is a blow to Russia as it narrows the number of shipping firms that are ready to transport Russian oil to consumers in Asia, Turkey, the Middle East, Africa and South America - although traders said Moscow still had enough shipping firms for now," says the article.

All three companies were actively involved in transporting Russian oil and fuel until September-October when they began reducing their participation in these processes. All three companies have rejected requests for vessels to load Russian oil in November.

The withdrawal of Greek freight shippers from the trade comes after the tightening of U.S. sanctions on Russian oil deliveries.

Details on the transportation of Russian oil

These three Greek companies have been engaged in the delivery of Russian oil for decades and continued to do so when most other Western companies ceased operations along these routes to avoid increasing sanction risks and the imposition of price restrictions.

These companies manage over 100 oil tankers capable of handling nearly all the oil exports from Russian European ports such as Primorsk, Ust-Luga, and Novorossiysk, amounting to approximately 10 million tons per month or 2.4 million barrels per day.

One trader informed Reuters that the "shadow fleet" may prove insufficient to transport all Russian oil.

U.S. sanctions against the Russian oil industry

U.S. Treasury Secretary Janet Yellen recently stated that Washington is preparing to take stringent measures for violating the established price ceiling on oil.

According to Reuters, the U.S. Treasury Department has requested information from shipping companies in about 30 countries regarding approximately a hundred vessels suspected of transporting Russian oil above the price ceiling.

Recently, Reuters reported that the price of the primary Russian export grade of oil, Urals, has returned to the sanctioned level set by the G7 countries at $60 per barrel.