Tupras, Turkey’s leading refinery, halts purchases of Russian crude in response to sanctions

Turkey’s primary oil refiner, Tupras, has made the decision to cease the procurement of Russian crude due to the sanctions imposed by the United States on Russian energy firms and vessels transporting Russian oil. This move was confirmed by Tupras during a call held subsequent to the release of their earnings report. Levent Bayar, the executive director of investor relations at Tupras, stated, “With the recent sanctions in place, we have halted the acquisition of Urals, and we are expecting to receive our final shipments in February.” Though it remains uncertain if Tupras will also halt the import of refined products from Russia, the company has yet to provide any official comments on this matter.

Following Russia’s incursion into Ukraine in 2022, Tupras emerged as one of the largest importers of Russian crude oil. Data from Turkey’s energy regulator shows that Russian oil accounted for 65 percent of Turkey’s overall oil imports between January and November 2024. In 2024, Tupras imported 225,000 barrels per day (bpd) of Russian crude, marking a record high compared to the 178,000 bpd recorded in 2023. Insights from Kpler, a shipping data analytics firm, reveal that Tupras nearly doubled its imports of Russian crude oil from 2021 to 2022, with imports reaching 170,000 bpd during 2021.

Tupras recently reported a net profit of 18.32 billion lira ($505.1 million) for the full year, a notable decrease from the 77.35 billion recorded in the previous year. Owned by Koc Holding, a conglomerate based in Istanbul, Tupras operates four oil refineries, including major facilities in Izmit and Izmir. For instance, the Izmir oil refinery, boasting a total crude processing capacity of 241,500 bpd, was noted to have received its most recent Urals cargo on February 11, according to data from Kpler.

The decision by Tupras to discontinue Russian crude purchases underscores the broader impact of geopolitical events on global energy markets. This development showcases the intricate relationships between economies, politics, and energy resources. Despite the challenges stemming from these sanctions, Tupras remains a significant player in Turkey’s oil refining sector, navigating changing market dynamics and geopolitical pressures. It will be interesting to observe how Tupras adapts to these challenges and explores alternative sourcing strategies to meet its energy needs in the future.