Last checked at 
* Some 600,000 tonnes of tainted oil remain unsold
* Glencore hardest hit among Russian oil buyers
By Olga Yagova, Vladimir Soldatkin and Dmitry Zhdannikov
MOSCOW, Aug 21 (Reuters) - BP and Glencoreare struggling to sell around 600,000 tonnes of tainted Russianoil more than three months after the contamination wasdiscovered, according to six trading sources.
Russia's oil industry was plunged into a crisis in Aprilafter about 5 million tonnes of oil for export was found to becontaminated with organic chloride, a chemical used to helpboost oil extraction but which can damage refining equipment.
Exports through the Druzhba pipeline that transports oil toGermany, Poland, Hungary, Slovakia, the Czech Republic, Ukraineand Belarus were halted. The Baltic port of Ust Luga loaded some15 cargoes or 1.5 million tonnes of the contaminated oil forWestern buyers.
At least 6 cargoes that sailed from Ust Luga remain unsold,according the trading sources. Glencore is stuck with 500,000tonnes in one very large crude carrier (VLCC) Amyntas and twosmaller tankers - Searanger and Searuby, according to thesources and Refinitiv Eikon vessel tracking system.
BP has tried to sell its cargo Fsl Shanghai at a tenderearlier this month but failed, according to the same traders. BPand Glencore both bought the oil from Russian state oil majorRosneft.
BP and Glencore declined to comment. Rosneft did not respondto a Reuters request to comment.
They cannot claim compensation until they sell the oil.
"You can't file a claim against Russia until you haveactually sold your oil and counted your losses," one of thetrading sources said.
President Vladimir Putin said in April oil contamination haddamaged Russia's image as a reliable supplier. Transneft andRosneft have been at loggerheads over efforts to resolve thesituation.
The oil was transported by pipeline monopoly Transneft,which said it was ready to pay compensation to Russian shipperswhich in turn would pay compensations to overseas buyers.
Transneft and the Russian Energy ministry did not respond toReuters requests to comment.
So far, Transneft has only agreed to pay $15 per barrel incompensation, or roughly a quarter of the cost of the oil, toKazakh oil producers, whose barrels got contaminated while enroute to Western markets.
"Many buyers of Russian oil believe $15 per barrel won't beenough," a trading source in a major said.
Some consumers who received tainted oil consider $30 perbarrel as reasonable compensation, two traders involved in thediscussions said.
Several refiners, including Total's Leuna inGermany, had to temporarily suspend refining of Russian oilbecause of fears of damaging refining equipment.
Another source with a large Western buyer said consumerswould most likely file claims in the autumn when they finallymanage to refine the dirty oil.
Oil firms have to blend one barrel of tainted oil with asmuch as 10 barrels of clean oil to reach required qualitystandards and avoid damaging equipment, sources said.
Total, for example, offloaded its two tankers with dirty oilin Rotterdam and Lithuania for storage and blending and furtherrefining.
DRUZHBA PIPELINE
Russian oil supplies along the Druzhba pipeline to Germany,Poland, Hungary, Slovakia and the Czech Republic have resumed inJuly after weeks of severely reduced flows.
Russia exported 24% less oil to Germany in the first sixmonths of 2019, year-on-year, due to contamination although itstill remained Germany's top crude supplier.
Some refiners like Total's Leuna and Poland's PKN Plock areblending tainted oil with cleaner barrels and are refining it.
Rosneft's Germany's refinery Schwedt has refused to takedirty oil, according to traders. Rosneft declined to comment.
Belarus has finished full clean-up of its system afterTransneft pumped some 2 million tonnes of dirty oil back toRussia, Transneft and traders said.
Transneft now needs to dilute the oil with cleaner suppliesto domestic refineries and export destinations.
The pipeline monopoly has also yet to sign finalcompensation documents with Kazakh producers to start repayingfees of $15 per barrel, traders said.(Writing by Dmitry Zhdannikov. Editing by David Evans and JaneMerriman)
