EU, UK Rush To Import Russian Diesel Ahead of Ban as No Alternative Supplier in Sight Yet

It is a mad splurge as sanctions supporting the EU and the UK are buying Russian diesel ahead of the US-backed oil embargo coming into force.

UK, EU Bypasses Sanctions

London and the bloc have imported about half the fuel; in twenty-four days of November alone, mentioned Bloomberg.

It suggests that both imported a total of 1.34 million barrels a day of diesel through the use of tankers and cargoes, respectively, from November 1 to 24, reported Republic World.

Russian crude oil shipments are banned from December 2022 and petroleum products from February 2023, with exceptions made under the punitive measures implemented.

In June 2022, the sixth bundle of sanctions against the trade of crude oil and certain oil products from Russia to the Bloc. The constraints will go into effect for crude oil beginning on December 5, 2022, or other petroleum products starting on February 5, 2023.

Dependence on diesel, a few member states, including Bulgaria and Croatia in particular, would stand to gain from these oil bans. The oil embargo will cover almost 90% of Russian diesel shipments into the EU and UK once they lapse this month in 2022.

Oil Embargo Could Devastate the Bloc, Not the US

Data indicates that Russian imports in the last month were the highest relative to the overall imports in the first ten months of 2022, when the EU and UK transported almost 600,000 barrels each day from Moscow.

It consists of the 45% of diesel imported during October, London and the bloc shipped about 34% of the diesel they needed. An increase in the importations of fuel during the last ten months went up to 51%.

Tankers laden with Russian diesel made port in the Baltic Sea of Primorsk The shipments of Russian fuel to London and the bloc had been passed through the Baltic Sea port of Primorsk.

Increased traffic recorded a substantial upsurge in a few days as they enforced the overall prohibition on oil supplies from Moscow due to Ukraine. Tankers passed the Amsterdam-Rotterdam-Antwerp area, Europe's largest northwest oil trading hub.

The holiday season will be the last time traders on ICE Gasoil, Europe's primary diesel futures exchange, transports Russian fuel to ARA storage facilities, stored in compliance with the restrictions, citing Zawya.

A few EU members, including Germany, still need to find a suitable supplier to substitute for Russian natural gas.

Despite the government striking a deal with Qatar, the head of the Bundestag committee on energy, Klaus Ernst, notified his followers on Twitter.

Its agreement would go into effect in 2026; however, the Gulf State is expected to provide Germany with two million tons of LNG annually. The contract should last up to 15 years and only 6% of the total amount that Germany shipped from Russia in 2021.

Both the EU and UK are sprinting to get enough Russian diesel that will be affected by the oil embargo but disregarding sanctions.