Saudi Arabia increases imports of Russian diesel

Russia multiplies its diesel exports to Latin America after the Western embargo


May 28, 2023 17:12 GMT

At the same time, the Arab nation has become the main diesel supplier for the European Union, which cut off deliveries from Russia after the imposition of sanctions.

Saudi Arabia has increased significantly imports of Russian diesel in recent months, the agency reported on Thursday Bloombergwhich cites data from the analytical company Kpler.

If in March the kingdom imported 114,000 barrels of diesel and diesel per day, the index reached 173,800 units in April and arrived at 191,200 in the first two weeks of May.

In parallel, the Arab nation has become the main supplier of diesel for the European Union, which cut deliveries from Russia after the imposition of extensive sanctions against the Russian energy sector for the operation in Ukraine. However, Saudi Arabia, which has led the Eurasian country since February, does not resell to the community block the same diesel that imports from Russiasince this would be a violation of Brussels restrictions, writes the agency.

The increase in diesel deliveries to the EU is due to the intensification of production at Saudi refineries, a source familiar with the matter told Bloomberg. The anonymous source specified that the extra amounts of fuel, which came from different parts of the kingdom, were produced to different specifications and were often subject to long-term supply contracts.

On the other hand, the Kpler data show that Riyadh overtook the US in April in diesel and diesel exports. 35% of all deliveries were sent to the EU and the UK.

“Trade flows are just one example of how the oil market has so far absorbed the aggressive western sanctions on Russian oil sales—including the price cap—allowing the country’s crude and fuels to keep flowing in large volumes“, reports the agency.

  • Seizure from the EU to maritime supplies crude oil russians it remains in effect from December 2022, while the restrictions on derivative products apply from February 5, 2023.
  • In addition, the EU, the G7 and Australia set a oil price cap sold by Russia, established in 60 dollars per barrel. They also set a limit of 45 dollars per barrel for products that are sold at a discount compared to crude oil (such as fuel oil), while the rate per barrel for fuels that are sold at a premium (diesel, kerosene and gasoline) was set at 100 dollars.

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