The European Union is going to embargo Russian crude oil and refined products by the end of this year. This measure is a part of the sixth round of the sanctions imposed on Russia after the beginning of the war in Ukraine. The only EU countries that still depend on Russian energy are Slovakia and Hungary.
Denis Varaksin, DYM Resources’ managing director, commented on the situation in Lubes’n’Greases’ recent article. According to Varaksin, Russian refiners are going through a big transition. Both logistics and finance became too complicated for companies to buy Russian product. Around mid-May, he predicts, they will stop buying base oils from Russia.
“It is very difficult to make any payment to Russia as major European and international banks refuse to do the transfers, even if it is absolutely legal. The EU also banned Russian-registered trucks from carrying products in the EU, while major shipping lines like Maersk, MSC and CGM-CMA do not accept booking for Russian cargoes. Shipowners for bulk business are also refusing to take Russian cargoes.” – Varaksin said.
Russian base oil exports are expected to drop by 30-50% by the end of this year because of the EU sanctions. The next year is not going to look much more optimistic.
DYM Resources is a Berlin based commodity trading company with a variety of products from different international producers. DYM Resources’ team has been on the base oil market for more than 10 years. Apart from base oils, Our product portfolio consists of different raw materials for lubricants manufacturers like PAOs, viscosity modifiers, and additives. We also supply such products as petrolatum, petcoke, bitumen, biofuel feedstock, and others.
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