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Monday, 02/28/2022 11:49:05 AM

Monday, February 28, 2022 11:49:05 AM

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The Orkney Islands, a tiny archipelago just off the Scottish mainland, are doing everything they can to stop a Russian oil tanker from docking -- in protest at the country’s invasion of Ukraine.

The NS Champion, owned by Russia’s Sovcomflot, is due to arrive at the Flotta Terminal in Orkneys this week. Tanker tracking data show that over the past several days it has veered toward the islands and then away again. It’s now sailing back toward them.

The ship’s planned arrival upset the local community, the islands’ council said in a statement, adding it’s in discussions with U.K. and Scottish governments about whether the vessel can legally be blocked. The incident offers a reminder of the unexpected ways in which Russia’s invasion of Ukraine last week might disrupt oil trades.

“We’re doing everything that is legally in our power to avert this situation -- no stone is being left unturned,” the council said. “We have been working tirelessly to try and find a solution to the issue of the visiting tanker -- in order to support the strength of feeling that is running not only in our community, but throughout our organization too.”

On Monday afternoon, U.K. Transport Secretary Grant Shapps said he told all U.K. ports not to provide access to Russian ships. Prohibiting legislation on the vessels will follow, he said.

The Orkney Islands, home to about 22,000 people, play an important role in the North Sea oil market, with crude from the 40,000 barrel-a-day Flotta stream loading there. It also acts as a location for ship-to-ship transfers for the crude that helps set an oil price called Dated Brent, which serves as a benchmark for physical oil trades the world over.

Sovcomflot is one of the largest owners of mid-size oil tankers in the world. Its access to debt markets was curtailed by U.S. sanctions last week. The EU took similar steps, according to Interfax.

The company’s fleet also plays a vital role in ferrying North Sea oil produced to other terminals in both the U.K. and elsewhere.

https://www.bloomberg.com/news/articles/2022-02-28/tiny-scottish-isles-try-to-stop-russian-oil-tanker-from-docking

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