September 25, 2022

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Shell still buys Russian diesel

Shell still buys Russian diesel

Shell still buys shipments of Russian diesel. These are mixtures consisting of a maximum of 49.99 percent of fuel from Russia. The rest of the diesel comes from other countries, He writes Bloomberg columnist Javier Blas.

This is not illegal, but the oil company has beginning of March It stated that it would stop buying Russian oil and gas. This decision followed heavy criticism when it became clear that Shell was buying additional Russian oil after the invasion of Ukraine, particularly at a high discount.

Shell now notes that the withdrawal from Russia will always be in phases “to ensure a safe and continuous supply of the fuel that people, societies and economies depend on”.

Latvian mix

From the contracts that Blas relies on, it appears that Shell recently classified mixtures consisting of less than 50 percent of Russian oil or gas as non-Russian. Blass writes: β€œOn the oil market, traders whisper about a ‘Latvian blend’ – a new diesel origin that looks like a solution to continue supplying Russian products blended with something else.”

Russian diesels mixed with diesels from other countries will be at the port of Ventspils in Latvia.

Shell understands that it allows traders to mix Russian diesel with other products to ensure security of supply. “These guidelines allow for a more in-depth investigation into the origin of the product and beyond what would require penalties.”

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