Russia's state-run oil producer is racing to sell its crude before tighter sanctions take hold

The Russian-flagged oil tanker Pegas is pictured at a port in Marmara Ereglisi, western Turkey January 16.

REUTERS/Yoruk Isik

• Russia's state-controlled oil giant is racing to sell its oil before tighter sanctions are imposed.
• Rosneft is hoping to get ahead of the growing pressure in Europe to embargo Russian oil.
• The company also will accept payment in dollars, euros, and yuan despite Putin's promise to only accept rubles.

Russia's largest state-run oil producer is racing to sell its crude as top customer Europe looks to tighten energy sanctions on the Kremlin for its war on Ukraine.

Rosneft is offering 37.4 million barrels of its Urals oil in May and June, equivalent to 40% of its daily seaborne crude exports for all of last year, according to Bloomberg.

Sales will be essentially immediate from both its east and west ports, with traders telling Bloomberg that Rosneft's large and short-term offers are a stark departure from its typical process of bringing oil to market.

Rosneft also wants 100% of its oil to be prepaid before delivery and is accepting dollars, euros, Chinese yuan, Turkish lira and UAE dirham, despite President Vladimir Putin's promise to only deal in rubles.

The race to market shows mounting pressure facing Russia as Europe is weighing an embargo in Russian oil. The European Union is preparing a sixth package of sanctions, which includes select restrictions on oil. But a full embargo is unlikely as Germany, Austria, and Hungary are against such a measure. 

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