The following article on Manifold Times was originally written by Danish independent online media ShippingWatch; which has given the Singapore bunkering publication permission to post the article for its readers:
BY PETER THOMSEN, LIV ALMER, METTE GRUBE CONDRUP
Published: 3 April 2024
Latvian Fast Bunkering has been accused by Bunker One of engaging in unfair competition because the Latvian oil company has apparently been supplying ships with Russian bunker oil in the waters off Skagen in Denmark for months.
Bunker One made the accusation at a closed meeting with the Danish Transport Authority in November, according to documents which ShippingWatch has gained.
”This (the supply of Russian bunker oil, ed.) gives them an unfair competitive advantage over the many companies that do not trade with Russian bunker oil – and that this option should be stopped, ” the Danish Transport Authority summarizes in a report to the Ministry of Foreign Affairs.
Both Russian fuel and the ongoing servicing of tankers with Russian oil have long been a point of contention among several of the suppliers active at Reden near Skagen.
As one of the key operators, Bunker One itself has refused to supply Russian oil, claiming that it could damage the company’s reputation.
Chief executive Peter Zachariassen tells ShippingWatch that ”Bunker One does not generally relate to other suppliers’ behavior in the market” and therefore chooses not to comment on the accusations.
Fast Bunkering initially did not respond to ShippingWatch’s inquiries, but has returned after the publication of this article.
The company denies having been ”involved in the delivery of Russian marine fuel at Skagen (Red, ed.) for months and that it gives our company an unfair advantage”.
“These allegations are not true, ” writes chairmain Aleksei Volkov in a written comment to ShippingWatch.
He also emphasizes that the Latvian bunker company’s operations have not involved the import of Russian bunker oil since the area became subject to sanctions in February 2023.
“We have conducted our business within the Scandinavian bunker market under fair and competitive conditions,” Volkov writes.
In short, the oil trade has been considered among the primary revenue streams funding the Russian war effort in the country, which according to recent casualty figures has cost the lives of 31,000 Ukrainian soldiers.
The central role of trade in the Russian economy has meant that since the end of 2022, the sale of Russian crude oil as well as petroleum products has been subject to sanctions and price caps to curb Russian energy export cash flows.
However, the increasing pressure of sanctions over the past year has sent the shipping industry into a sea of gray areas when it comes to transporting and servicing the continued oil trade on European territory.
The issue has previously divided the Danish industry, with some suppliers refusing to sell fuel to ships traveling to and from Russia - even if they comply with all sanctions - while others have sent the decision to set the trade fenceposts to Christiansborg and others.
Trading is ”certainly legal”
In its warnings to the Danish Transport Authority, Bunker One has emphasized that Fast Bunker’s deliveries have only affected competition, but not necessarily illegal in relation to, for example, sanctions against Russia. According to the report to the agency, the Middelfart-based bunker company emphasized that the transaction ”is certainly legal”.
In practice, Bunker One is one of the subsidiaries of the United Shipping & Trading Company group (USTC) owned by billionaire Torben Østergaard, just like Dan Bunkering, for example.
“In December 2023, the Danish Transport Authority received a confirmation from Bunker One about their view on the case,” the agency writes in a written comment and adds:
“The Danish Transport Agency has not itself been in contact with Fast Bunkering about the case, as the agency is only the competent authority in relation to the ban on Russian ships calling at Danish ports.”
The Danish Competition and Consumer Authority states that it does not comment on “any pending cases until a decision has been made”. The agency does not wish to comment on whether the specific case is under consideration.
Bunker One: Not our policy
At Bunker One, CEO Peter Zachariassen does not comment on whether Fast Bunkering, in the company’s view, is currently gaining an unfair competitive advantage.
In the comment sent to ShippingWatch, the CEO does not reject the Danish Transport Authority’s interpretation of the contact between the Danish bunker operator and the authorities, but distances himself from the process.
“That employees at a meeting with the Danish Transport Authority, in connection with knowledge sharing about expectations for future bunkering of green fuels and the importance for Danish commercial ports, have inadvertently mentioned other suppliers, is not Bunker One’s policy or position,” writes Peter Zachariassen in a written comment.
Photo credit: Bunker One
Source: ShippingWatch
Published: 9 May 2024