Shipments of Russian diesel to NATO member Turkey rose last month to their highest level in seven years, according to data from trader Vortexa Ltd. and analyzed by Bloomberg, after the embargo on the purchase of Russian petroleum products was introduced two months ago. Turkey’s domestic products can be sold in the EU at higher prices.

Fuel canistersPhoto: Andriy Shevchuk / Alamy / Profimedia Images

Although analysts had expected Turkey to buy more Russian diesel after the EU sanctions took effect, the increase is impressive.

Russian diesel shipments to Turkey topped 10 million barrels in March, nearly 50% more than in February, and also enough to cover Turkey’s needs for several weeks, according to Bloomberg data. In addition, these deliveries are also beneficial from a financial point of view, since, most likely, Turkey receives fuel at attractive prices.

“Turkey benefits the most because it receives Russian diesel fuel at low prices,” says Eugene Lindell, an analyst at the consulting firm Facts Global Energy, adding that these supplies provide Russia with a buyer for its oil products, Agerpres quoted.

Given that Turkey can still legally import diesel from Russia, the fact that traders can bring in cheaper fuel does not mean they are destined to cover the country’s energy needs. At the same time, Turkey’s own production could be sold in the EU at higher prices.

It is not yet clear whether this is happening or not. Although Turkey’s total diesel imports rose in March thanks to shipments from Russia, exports remained relatively flat.

In addition, the overall picture may be complicated by the repair work at the refinery in Turkey. The work could justify Turkey’s need to increase diesel imports to meet domestic demand, which the Joint Data Initiative said stood at 560,000 barrels per day in December.

It is also difficult to quantify the impact of the recent devastating earthquakes on Turkey’s diesel import needs.

“The only logical conclusion regarding Turkey is that the processing system operates at significantly lower capacities. Whether it’s related to the earthquake remains to be seen,” Lindell said.