Shell still buys Russian diesel

Shell still buys shipments of Russian diesel. These are mixtures consisting of a maximum of 49.99 percent fuel from Russia. The rest of the diesel comes from other countries, writes Bloomberg-columnist Javier Blas.

That’s not illegal, but the oil company had beginning of March reported that it would stop purchasing Russian oil and gas. That decision followed fierce criticism when it became clear that Shell was buying extra Russian oil after the invasion of Ukraine, at a high discount.

Shell now points out that the withdrawal from Russia would always be phased “to ensure a safe and continuous supply of fuels on which people, societies and economies rely”.

‘Latvian blend’

From contracts on which Blas relies, it appears that Shell has recently labeled mixtures that consist of less than 50 percent of Russian oil or gas as non-Russian. “In the oil market, traders are whispering about a ‘Latvian blend’ – a new origin for diesel that seems like a solution to continue supplying Russian products mixed with something else,” Blas writes.

It would be Russian diesel that is mixed with diesel from other countries in the Latvian port of Ventspils.

Shell recognizes that it allows traders to mix Russian diesel with other products to ensure security of supply. “Those guidelines allow for more in-depth investigation into the origin of the product and beyond what requires sanctions.”

–