Lukoil PJSC’s business unit Litasco SA is launching an operation in Mexico as the oil giant seeks new markets for Russian products under a sweeping sanction.
Litasco hired oil products trader Yuri Carreno for its new office in Mexico City, according to people with knowledge of the situation. Carreno, who previously spent 25 years as a senior gasoline trader at the trading arm of Petroleos Mexicanos, PMI, started in July, said the people, who asked not to be identified, were discussing internal matters.
Lukoil and Carreno did not return multiple requests for comment.
The expansion into Mexico, which is Latin America’s biggest fuel importer, would open a new market for Russian fuels that are under sanctions from G-7 countries after Russia’s war in Ukraine. While Mexico has only imported from Russia once since the war began, Russian shipments have been making other forays into Latin America. Brazil has been importing record volumes of diesel from the country. Argentina has also been buying naphtha and diesel.
If successful, the effort could see Russia displace the US as Mexico’s main fuel supplier. The US currently supplies 90% of Mexico’s gasoline and diesel imports.
–With help from Amy Stillman and Archie Hunter.
