EU’s ban on diesel fuel from Russia shifts trade patterns

… <p>On June 3, 2022, the EU adopted <a href="https://www.consilium.europa.eu/en/press/press-releases/2022/06/03/russia-s-aggression-against-ukraine-eu-adopts-sixth-package-of-sanctions/">a sixth package of sanctions</a> that <a href="https://www.consilium.europa.eu/en/policies/sanctions/restrictive-measures-against-russia-over-ukraine/sanctions-against-russia-explained/">banned imports of seaborne crude oil</a> from Russia into the EU (effective December 5, 2022) and banned seaborne imports of petroleum products from Russia, including diesel fuel (effective February 5, 2023). </p> <p>Prior to the sanctions, between October 2021 and September 2022, diesel imports from Russia made up 53% of Northwest Europe’s seaborne imports. In February 2023, when the sanctions took effect, those diesel imports fell to 2%. Although petroleum product imports from Russia have declined, imports from other areas, notably the Middle East and Asia, have increased. </p> <p>The largest increase in diesel import volumes to Northwest Europe came from Saudi Arabia, increasing to 202,000 barrels per day (b/d) in February 2023 from an average of 68,000 b/d from October 2021 through September 2022. Compared with the same periods, diesel imports from India increased by 110,000 b/d to 161,000 b/d. Diesel imports from China and South Korea, which have not been consistent diesel exporters to Europe, have likewise increased. In February, diesel imports reached 119,000 b/d from China and 45,000 b/d from South Korea. </p> …