Trade between Turkey and Russia has been booming as Turkish companies did not stop from dealing with Russian counterparts and stepped in to fill the gap created by EU businesses leaving Russia after being of war in Ukraine earlier this year. Russia calls its actions in Ukraine 'a special military operation.'
Turkey increased oil imports from Russia, including Urals and Siberian Light grades, beyond 200,000 barrels per day (bpd) this year as compared to just 98,000 bpd for the same period of 2021.
Turkey did not sanction Russia due to its actions in Ukraine, saying it remains reliant on Russian energy supplies.
Russian President Vladimir Putin and Turkish President Tayyip Erdogan met early in August and agreed to boost business cooperation.
Turkey's main refiners Tupras and Azerbaijan's SOCAR's STAR refinery significantly increased intake of Russian Urals and Siberian Light oil this year, while decreasing purchases of North Sea, Iraqi and West African grades.
Over the last few years, STAR refinery increased purchases of Norway's Johan Sverdrup and Iraqi oil grades, which are close in quality to Urals as Russian oil has been growing in price.
This year, Russian oil prices fell to historical lows against Brent benchmark, while North Sea and Iraqi oil grades prices increased.
STAR refinery is expected to purchase about 90,000 bpd of oil from Russia during January to August 2022 as compared to 48,000 bpd during the same period of the last year.
Tupras refineries will buy about 111,000 bpd of oil from Russia in January to August this year compared to just 45,000 bpd during the same period last year, according to the data.
"The choice for Turkey's refiners was obvious as they have no limits on Russian oil buying", a trader in the Mediterranean oil market said, who declined to be named as he is not authorized to speak to the press.
He added that good Urals oil refining margins supported profits of Turkish refiners.
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