05 February 2023, Sunday, 12:35 559

Ban On Supply Of Oil Products From Russia To EU Comes Into Force Today

Editor: Tetiana Herasimova

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Today, February 5, the European Union (EU) ban on imports of Russian oil products comes into force, and Europe is looking for alternative ways to supply oil products.

European Commission President Ursula von der Leyen announced this on Twitter.

“We must continue to deprive Russia of the means to wage war against Ukraine. EU’s import ban on Russian petroleum products comes into force on Sunday. With the G7 we are putting price caps on these products, cutting Russia’s revenue while ensuring stable global energy markets,” she wrote.

Ursula von der Leyen added that the European Union and G7 set price caps on these products, "cutting Russia’s revenue while ensuring stable global energy markets."

In November-December 2022, European traders sharply increased imports to accumulate stocks before the ban came into force. But there is a high likelihood that Europe will face a diesel shortage for the long term.

Note that some traders are trying to re-export Russian diesel fuel from countries outside the EU to Europe. Last year, Europe (with the exception of Turkiye) imported about 1.2 million barrels per day from Russia, about 100,000 barrels per day less than in 2021, according to transportation data. About 100,000 barrels per day of these products were re-exported from countries such as Estonia and Latvia to non-EU countries, resulting in net imports of about 1.1 million barrels per day.

Imports of non-Russian diesel fuel by EU countries in the 2nd half of 2022 increased by almost 200,000 bpd compared to the first. But it is unclear whether these suppliers will be able to fully compensate for the loss of Russian diesel. The main suppliers outside Russia are Saudi Arabia, Italy and the Netherlands. India has also become more visible since March 2022.

As Ukrainian News Agency earlier reported, the European Union and G7 are introducing a price cap on Russian oil products.