Russia’s ESPO grade crude oil is being sold in Asia above the US$60 price cap.

The ESPO crude, which is coming from Russia’s Far East, is being sold in Asia above the price cap, as it appears that Russia is currently handling the Russian Far East-China route with Russian tankers and insurance.

Oilprice.com is reporting that some independent refiners in China have already placed orders for ESPO crude with January delivery of the grade, whose price was assessed at US$67.11 per barrel on Thursday by Argus Media.

PRICE CAP IMPOSED BY THE EU, THE G7 AND AUSTRALIA

The trades with ESPO above the price cap suggest that, for now, Russia has the tankers and insurance firms to provide coverage and shipping for the ESPO grade, which can reach China from Russia’s Far East in less than a week.

Russia has used its own tankers to ship the ESPO crude and often provides insurance itself, according to traders who spoke to Bloomberg. The price cap on Russian crude imposed by the European Union, the G7 and Australia came into effect last Monday.

However, China hasn’t joined the so-called Price Cap Coalition, which bans maritime transportation services for Russian crude oil unless the oil is sold at or below US$60 per barrel. Russia has previously used its tankers for the ESPO crude and often self-insures.

It now appears to be business as usual for Chinese refiners, who continue to buy Russian crude and are ignoring the price cap imposed by Western countries.

While the ESPO crude is easier for Russia to move from its Far East to China, the price of Russia’s Urals grade, shipped from the Baltic port of Primorsk, was assessed at well below the price cap last Thursday.