Traders have started stockpiling Russian diesel amid a possible EU ban and limited alternative sources.
The European Union will impose a ban on imports of petroleum products from Russia, which rely heavily on diesel, by February 5.
While the import of Russian crude oil will be banned till December this year.
Pamela Munger, senior manager of the British company Vortexa, says that the amount of Russian diesel stored in Europe between November 1 and 12 has increased by 126 percent compared to October.
Russian diesel accounted for 44 percent of Europe’s imported fuel used in vehicles in November, compared to 39 percent in October.
Even before the invasion of Ukraine in February this year, Europe’s dependence on Russian fuel was reduced by more than 50%, but Russia is still the largest supplier of diesel to Europe.
Economic analyst Eugene Lindel says that in order to find an alternative to Russia, the EU would have to stockpile about 500-600 barrels of diesel per day that could be imported from the US, the Middle East and India.
From November 30, European traders will have to provide evidence to the relevant authorities that no Russian petroleum product tankers have been stored in the port areas of Amsterdam, Rotterdam and Antwerp (ARA).
Until December, Russian fuel can be stored in tankers at ARA, but it must be transferred to other tankers from where delivery to the market is not possible.
It should be noted that the report published in September by the European think tank “Center for Research on Energy and Clean Air” said that since the beginning of the Ukraine war, approximately 43 billion euros have been added to Russia’s federal budget through biofuel exports. Joined
According to the think tank, rising biofuel prices have boosted Russia’s current income significantly over the past year, despite Moscow’s overall export volume falling.
The report said that the European Union has imported the most biofuels from Russia in six months at around 85 billion euros. While China imported 34.9 billion euros and Turkey 10.7 billion euros of biofuels from Russia.
After the European Union stopped buying coal from Russia, it also started to gradually ban the import of oil.