Russian oil enters US through Bahamas blending loophole

A US refiner imported 10,000 barrels of Russian oil through a blending loophole at storage terminals in the Bahamas.

The crude, brought into Wilmington, Delaware in November, didn’t violate US sanctions because it was exported from Russia to the Bahamas prior to March 8, 2022, when the sanctions began, said Morgan Butterfield, an Energy Information Administration spokesperson. It was then commingled with other oil before being imported into the US, he said.

The shipment arrived at PBF Energy Inc.’s Delaware City refinery, EIA and customs records show. The importer then specified that the blended barrels were of partly Russian origin, Butterfield said.

PBF’s cargo complies with US sanctions against Russia, Michael Karlovich, a spokesperson for the refiner, said without providing further details.