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Petroecuador Declares Force Majeure on Russian Diesel Delivery

  • Ecuador couldn’t secure bank financing amid sanctions
  • Diesel cargoes were caught in the crosshairs of U.S. ban

Ecuador’s state oil company EP Petroecuador declared force majeure on two cargoes of Russian diesel after banks declined to provide financing to pay for them following the invasion of Ukraine. 

The ships are the last of eight that BB Energy had agreed to supply to Ecuador after participating in a competitive bidding process held in December. The vessels were already en route to the South American nation when the war broke out and banks all over the world began to shun financing of any Russian cargoes. Petroecuador was unable to secure funding for the previously-agreed deals after the U.S. imposed sanctions on Russia, according to the company’s oil trading manager, Pablo Noboa.