A month before G7 members imposed a cap on the price of Russian oil, veteran commodities trader Niels Troost spoke at a global food security conference and questioned whether the move made sense.
“There are all kinds of reasons why price caps may not necessarily be the solution,” he told the November gathering, arguing that Russian oil exports were necessary to stop food prices soaring. “How do we do that? By getting the shipowners, the banks, the insurance companies, to recognise that we have a bigger responsibility than our morals.”
Troost has a record of keeping Russian oil flowing: Switzerland-based Paramount Energy & Commodities SA, the company he founded, was a leading trader in oil from Russia’s far east before and after President Vladimir Putin launched his full invasion of Ukraine a year ago. But the tightening of EU sanctions on Russian energy exports in May threw up hurdles that made the trade more difficult.
What happened next highlights the complications and contradictions of a sanctions regime designed to starve Putin of funds for his war, while keeping Russian oil exports going to protect the global economy. It also illustrates how some oil traders have been willing to take on the reputational and legal risks of continuing the lucrative business with Russia when better-known companies have been deterred.
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