European Union announces a full ban on Russian Oil from Feb 5

2023-01-30 16:52:56 Shipping News

European Union has announced a full ban on Russian oil product imports from Feb. 5 in an attempt to cut Russia’s revenues for its role in the military conflict with Ukraine.

The Group of Seven (G7) coalition is also planning to impose price caps on Russian fuel.

Russia has plans to divert its supplies to Asia, Africa and Latin America, and would rather cut oil production than agree to a price cap, Russian Deputy Prime Minister Alexander Novak said in December.

Diesel supplies from Russian ports to Turkey have been growing in recent months and totaled about 0.68 million tons from Jan. 1-25, against 0.73 million tons in whole December, Refinitiv data showed.

Russia has diversified its sources for export in view of the sanctions regime being implemented by United States, European union and Japan.Two cargoes carrying 70,000 tons of diesel are also heading from Russia to Brazil. Since the start of January, diesel and gasoil supplies from the Russian Black Sea port of Novorossiisk to Senegal have ramped up to 140,000 tons versus 35,000 tons in the previous month. Two more tankers could deliver up to 66,000 tons of Russian diesel to Libya, Refinitiv data showed.

Despite the growing oil product supplies from Russia on new export routes, traders expect some turbulence on markets for the next two to three weeks, market sources said.

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