Despite stringent bans and sanctions on gas and oil produced by Russia due to its invasion of Ukraine, Russian black gold has reportedly entered the supply chains of the US military, the Washington Post reported.
The Motor Oil Hellas refinery, a Greek crude refinery supplying the US military, claimed to have shifted to alternative fuel sources months after the West imposed a ban on Russian oil exports. However, an analysis of shipping data by the Post reveals that the refinery’s new fuel source was, in fact, Russian oil that had changed hands. This crude oil from Russia was first shipped to Dortyol, a storage terminal in Turkiye, before reaching Greece.
The quantity of Russian-origin crude oil purchased by the US Pentagon is not known. Nevertheless, the Department of Defense awarded nearly $1 billion in contracts to Motor Oil Hellas since Russia launched its “special military operation” in Ukraine in February 2022, marking a significant increase from the previous year, according to an investigation by the watchdog group Project on Government Oversight. It remains unclear whether the Russian fuel oil was relabelled as originating from another country during its journey.
HOW RUSSIAN OIL TRICKLED INTO PENTAGON SUPPLY CHAIN
Dortyol, the storage terminal in Turkiye, received 5.4 million barrels of fuel oil by sea over the past two years, with all but 1.9 million originating from Russia. Since the imposition of European Union sanctions in February, Russian shipments to Dortyol accounted for over 69 per cent of the fuel oil shipped by sea during that period.
The Post’s investigation revealed that Dortyol shipped 7 million barrels of fuel oil overall since February, with 4.2 million barrels going to Motor Oil Hellas. This constituted at least 56 per cent of all fuel oil received by the Greek refinery via sea.
At least five shipments from Russia to the Dortyol terminal this year were initially sent by Russian oil major Rosneft, according to the report. After being loaded onto tankers, each cargo was then purchased by a firm based in the United Arab Emirates, trading data showed.
The fuel is no longer marked as Russian when it arrives in Greece, where Motor Oil Hellas refines and mixes it into a supply purchased by the US military.
Since February, Motor Oil Hellas has also shipped over 1 million barrels of jet fuel to government and corporate buyers in Italy, France, Spain, and Britain, according to shipping records.
PENTAGON ON THE DEFENSIVE
Joe Yoswa, a spokesperson for the Pentagon’s Defense Logistics Agency, which oversees fuel purchases for the US military, stated that the agency has “no knowledge” of Russian fuel being routed to its Greek supplier. Yoswa added that contractors, including Motor Oil Hellas, are responsible for ensuring compliance with relevant laws and regulations, certifying their adherence during the acquisition process.
Yoswa said “there is only so much the Pentagon can do” to monitor suppliers, noting that the products contributing to the fuels purchased from Motor Oil Hellas could change constantly, making it difficult to trace their origins for a specific delivery.
Motor Oil Hellas issued a statement asserting that the company “does not buy, process, or trade Russian oil or products” and that all its imports are certified as non-sanctioned.
The watchdog group conducting the investigation highlighted the Pentagon’s dilemma, as it continues to send substantial weaponry to Ukraine while potentially procuring products containing Russian fuel—a significant economic driver for Russia’s war machine.