At least some oil buyers appear to be overcoming an initial reticence about buying crude from Russia that emerged after the nation’s invasion of Ukraine—although the situation remains challenging.

Poland’s biggest oil refiner bought a cargo of Russia’s flagship Urals crude in a tender and several companies have resumed buying activity after an initial pause, according to people who purchase the nation’s oil. In the shipping market, trading giant Trafigura Group provisionally booked a tanker to load the grade.

The activity indicates that—having analyzed the sanctions response so far—at least some companies have decided they can safely carry on handling Russian oil. The current measures imposed by the White House include a carve out that enables buyers to keep paying Moscow for “energy”—a very broad category that covers petroleum. 

Poland’s PKN Orlen bought one cargo of about 700,000 barrels of Urals crude for delivery to a port in Lithuania in mid-March in a tender, according to people familiar with the matter. On Monday though, Russia’s Surgutneftegaz failed to award a tender to sell two cargoes of Urals for loading March 10-11. It issued another new tender for a total of 8 March cargoes that will offer futher clues as to buyers’ appetite for Russian oil.

Shipping Rates

In the shipping market, Trafigura hired a vessel able to transport 1 million barrels of oil from the Black Sea, according to lists of charters compiled by Bloomberg. Shipbrokers said the charter remained at the provisional stage and would be finalized later. 

Orlen said in an email response to Bloomberg News it would adhere to the guidelines set in sanctions imposed by international institutions. Trafigura declined to comment.

Some trading houses are still checking contracts and regulations to make sure they’re compliant currently, and are awaiting further information about sanctions announced but not yet formalized, such as the EU’s over the weekend, to make sure they’ll be compliant in future.

Oil traders, shippers and insurers took an initially cautious response after Russia first invaded. Russian crude traded at the deepest discount ever to an international benchmark and—with tanker owners wary—oil shipping costs from the Baltic and Black Seas and beyond have soared.

Tanker owners who are willing to lift Russian supplies stand to make windfall profits if the cargoes proceed as planned. Rates from both seas soared since the invasion because of owners’ unwillingness to sail there. Shares of Frontline Ltd., one of the world’s largest tanker owners, jumped as much as 10% in Oslo. 

Orkney Response

That’s not to say the situation is anywhere near normal. Some traders and buyers remain cautious and several shipbrokers said that multiple tanker companies remain unwilling to compete for Russian oil cargoes. 

In the Orkney Islands off the coast of the Scottish mainland, the local council is trying to block a Russian tanker from docking, according to the local council. Grant Shapps, the U.K.’s transport secretary, said he will propose “prohibiting legislation” stopping Russian ships from entering U.K. ports.

Banks have also become unwilling to finance commodities from Russia, with ING Groep NV, Rabobank, Credit Suisse Groupe AG and Societe Generale SA all halting commodity trade finance deals over the past week.