Direct purchases from the refineries are prohibited

Refineries are legally barred from directly selling their products to the market or retailers. Instead, they must participate in specialized auctions that only large purchasing agencies with enough cash collateral can access. These agencies act as intermediary brokers, buying the goods from refineries and then distributing them to the retail market through smaller transactions. To facilitate this process, a diverse group of oil intermediaries, including both small and large ventures specializing in petroleum product sales, contribute to the successful exportation of these goods.

Refineries as Manufacturers, Not Sellers

It is important to understand that refineries function as manufacturers, not sellers. The agencies, essentially acting as brokerage companies, serve as intermediary brokers responsible for organizing and facilitating shipments and transportation, both by land and sea. However, the choice of brokerage firm may vary depending on factors such as the timeframe, quantity, and work intensity of the transaction.

Sales Agents

Each product sale may require the involvement of different brokerage companies, depending on their supply capacity, product quality, and expertise in specific types of operations, such as FOB, CIF, DAP, land, pipeline, or sea freight operations.

Non-Sanctioned Products

Clarifying Preferences for Non-Sanctioned Products It is crucial to clearly specify your preferences regarding the origin of the refinery products you desire. For instance, if you do not want to receive products of Russian origin, this should be explicitly stated in your purchase order. Additionally,

You have the option to change your brokerage company

If you are dissatisfied with the agency assigned to handle the agreement, it is possible to make changes either before or after the first trial shipment, as long as such modifications are included in the ICPO (Irrevocable Corporate Purchase Order) and the Contract at your request.