Hoot of the Day: Russian Oil Gets to US Via Sanction Loophole – Counter Information

US sanctions are on crude oil, not refined products.Lukoil, Russia’s second largest oil and gas company was not sanctioned by the US.Lukoil’s refinery in Sicily is the second largest in Italy and fifth largest in Europe.

A Lukoil refinery in Italy once processed crude from multiple countries. Now it inputs are 93 percent from Russia.

After refining, the country of origin is Italy, not Russia. This is due to longstanding practice of changing the country of origin to where oil is refined.

The refined product then makes its way Exxon and Lukoil plants in New Jersey and Texas.

Hoot of the Day: Russian Oil Gets to US Via Sanction Loophole – Counter Information