Daily Management Review

Shell refuses Russian oil mixes


According to Reuters, British-Dutch Shell has ceased buying Russian oil mixed with oil from another country.

Shell announced its plan to exit its joint operations with Russia in February. The corporation declared in March that it will pull out of all Russian hydrocarbon projects and stop buying Russian oil on the spot market.

Shell had made changes to its contracts earlier in April, according to the media, and would only buy Russian oil if it was blended with oil from another country at least in half. According to media accounts, the blending was a useful technique for "saying one thing in public and doing another."

Traders refer to this mix as "Latvian" because it is made in the Latvian port of Ventspils. Traders were talking about "Malaysian" or "Singaporean" mixes around the time of the Venezuelan oil export restriction.

"Shell indicated it would no longer accept oil from Russia, including as part of blended products," the outlet reported, citing trade documents from the business. The documents provided to the news agency also shed light on the problem of Russian oil transit.

"One of the requirements of this application is that the items sold and delivered... are not of Russian origin and are not blended with any Russian-made product. Simultaneously, the shipment of the sold items will not begin with a transit via the Russian Federation" read the documents.

source: reuters.com