New US and EU sanctions against Russian state-controlled producer Rosneft are beginning to make counterparties and trade financiers nervous. Japanese buyers of Russian ESPO Blend have pulled out of a Rosneft tender, apparently because of uncertainty over the implications of US and EU sanctions against the company.A trading firm confirms that it was unable to participate in the Rosneft tender for up to 125,000 b/d of September-loading ESPO Blend after Credit Agricole,Sumitomo Banking and Bank of Tokyo-Mitsubishi UFJ turned down its requests for letters of credit.And other market participants say they have struggled to secure letters of credit with France’s BNP Paribas and HSBC when looking to buy Rosneft crude.
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