By Sarah Kent
LAUSANNE--Trafigura Beheer B.V. has increased its oil trading
activity in Russia, with the country remaining an attractive region
for commodities traders despite the current challenges posed by
restrictive western sanctions.
Trafigura Chief Executive Jeremy Weir said the company is
trading more oil in the country, though it remains compliant with
the strict constraints on financial transactions with Russian
entities. The trading house began to beef up its exposure in the
country, hiring a team of senior traders from TNK BP and signing a
sizeable pre-export finance deal with state-owned oil company
Rosneft (ROSN.MZ).
"As far as we're aware there are no sanctions on oil trading in
Russia," Mr. Weir told the FT Global Commodities Summit in
Lausanne.
Other traders are more cautious. Gunvor Group is in the process
of selling its Russian assets in a move to diversify the company
after its co-founder Gennady Timchenko was placed under sanctions
by the U.S. Treasury last year. Mr. Timchenko no longer has any
stake in the company, which has also expressed its interest in
buying assets in North America. However, in the long term, Russia
and its enormous natural resources remain attractive to commodities
players.
"I think Russia still has huge potential," said Torbjorn
Tornqvist, chief executive of Gunvor Group. "I do believe there are
a lot of companies waiting to go back there." He didn't mention
whether Gunvor might be amongst them.
Write to Sarah Kent at Sarah.Kent@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires