Published January 26,2023
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Russian exporters greater than doubled gross sales of liquefied petroleum gasoline to the Baltic states in 2022, a few of which was bought on to Ukraine, based on information from three buying and selling and freight-handling sources masking the area.
The leap in purchases of Russian LPG got here regardless of sharp condemnation of Moscow’s actions in Ukraine from the three Baltic states, all NATO and European Union members, as Europe struggles to search out contemporary sources of the gas in a good world market.
LPG, which is principally used as gas for automobiles, heating and to provide different petrochemicals, has been exempt from sweeping Western sanctions imposed in opposition to Russia over Ukraine.
According to Reuters calculations primarily based on information collected from the three merchants and freight handlers masking the area, Russia boosted LPG mixed gross sales to Latvia, Lithuania and Estonia to 331,000 tonnes from 159,000 tonnes in 2022.
The improve got here as Ukraine and another international locations refused to purchase the Russia-sourced gas instantly.
Russian LPG gross sales to Latvia rose by 77% to 232,000 tonnes, whereas provides to Lithuania jumped 8.5 occasions to 72,000 tonnes and gross sales to Estonia elevated by 42% to 27,000 tonnes final yr, based on the information and Reuters calculations.
The power ministries of Latvia and Estonia didn’t reply to requests for touch upon the information. The Lithuanian ministry declined to remark.
Russia’s relations with the Baltic states have worsened sharply since Moscow launched what it calls its “special military operation” in Ukraine final February. Russia and Estonia expelled one another’s ambassadors on Tuesday, and Latvia additionally downgraded relations with Russia.
According to the information, Russian LPG provides to Latvia accounted for 90% of the nation’s complete LPG imports in 2022, whereas Lithuania bought half of its consumption from Russia and the remainder from Latvia.
Traders mentioned extra volumes of LPG had been bought on from the Baltics to Ukraine in latest months. They mentioned Latvia and Lithuania equipped some 15,000 tonnes to Ukraine in December alone, accounting for 15% of Ukraine’s complete LPG imports that month.
They mentioned LPG from Russia is less expensive than provides from different international locations corresponding to Poland and Romania, as export choices have been restricted since Russia entered Ukraine.
“Ukrainian companies buy propane-butane (LPG) from Lithuania and Latvia, which is with high probability of Russian origin. However, the price difference of $150-$200 per tonne in comparison with Poland and Romania allows (them) to turn a blind eye to the country of origin,” a dealer masking the Baltic states mentioned.
He added that there is no such thing as a official Ukrainian ban on importing Russian LPG. Ukraine’s power ministry didn’t remark when contacted by Reuters.
Other merchants mentioned that Ukraine additionally buys LPG instantly from Lithuania’s Mazeikiu Nafta plant, which is owned by Poland’s Orlen, although its complete share in gas provides to Ukraine is comparatively small.
Source: www.anews.com.tr
