Ghana escapes EU sanctions for receiving crude oil from non-Russian origin
Ghana has come under international scrutiny in recent days, following the receipt of crude oil from a Ukrainian-owned refinery in Tema. However, a source has pointed to an opinion by the Attorney General and Minister of Justice, stating that Ghana did not breach any law in receiving the crude oil, which has since been discharged for processing at the Platon refinery.
Asaase News, a leading Ghanaian news outlet, has confirmed that the receipt of the crude oil breaches no law that can attract sanctions for the country. This news comes after reports broke in the international media, notably Bloomberg, alleging that a vessel carrying crude oil from Russia was to be stored in tanks in Ghana. However, it has been revealed that the crude oil’s stated origin is Aktau, Kazakhstan, with the shipper of the cargo being a company operating from Hong Kong.
The Platon refinery, which is Ukrainian-owned, is based in Tema and requested the National Petroleum Authority to discharge approximately 80,000MT of crude oil through the Tema port, to be stored in the storage tanks on behalf of Platon Gas Oil. This oil will be used for processing at the refinery.
It is important to note that Ghana would not have breached any EU law, specifically the 6th and 8th EU sanctions, in receiving the crude oil. The 6th package of EU sanctions, which took effect on crude oil contracts after 5 December 2022, applies to EU Member States and EU-registered vessels which carry crude oil originating from Russia to third countries, like Ghana. However, it only applies to EU countries selling Russian oil to third party countries. As the crude oil’s origin is Aktau, Kazakhstan, and the shipper is a company operating from Hong Kong, the 6th package of EU sanctions does not apply to this situation.
Similarly, the 8th package of EU sanctions puts a cap on the prices applicable to seaborne crude oil originating from Russia. As the crude oil in question does not originate from Russia, this package of EU sanctions also does not apply to Ghana’s receipt of the crude oil.
This development highlights the importance of clarity in international business transactions, as confusion and misinformation can lead to unnecessary scrutiny and potential sanctions. Ghana’s ability to receive the crude oil for processing at the Platon refinery will likely be a boost to the country’s energy sector, as it continues to strive towards energy security and sustainability.
