(Reuters) – Russia is shipping its first cargo of oil to Brazil as it seeks to diversify its list of buyers that has been drastically limited by U.S. and European Union sanctions, according to traders and LSEG data.
Russia has relied heavily on India and China as the main buyers of its oil after the European embargo and price cap policies were imposed in December last year following Russia’s invasion of Ukraine, which Moscow calls a special military operation.
Brazil is part of the BRIC alliance, along with India and China, which have been the most active buyers of Russian oil, with large discounts due to the sanctions.
Unlike India and China, Brazil is a major oil producer and exporter, but occasionally imports oil for domestic refining needs.
Russia’s Lukoil is shipping 80,000 tons of its Varandey oil on the Stratos Aurora ship from the port of Murmansk to the Madre de Deus port terminal in Brazil, operated by Transpetro, a subsidiary of Petrobras, according to shipping sources and data.
Varandey Blend is a type of light crude oil, while other types of Russian oil have been shipped mainly to India and China in recent months.
Lukoil, Petrobras and Brazil’s Ministry of Mines and Energy did not immediately respond to Reuters’ requests for comment.
No information was made available about the buyer of the cargo.