ASIATODAY.ID, MOSCOW – The European Union restricted Russian LPG imports on December 18, 2023 as part of its 12th package of sanctions against Russia. However, the restrictions did not affect the already signed contracts with a maximum 12-month deferral. This transitional period has expired.
Russia has shifted its liquefied petroleum gas (LPG) deliveries to Central Asia and China given the ban on imports to Europe, according to Argus pricing data.
The European Union’s restrictions took effect on December 20, following a 12-month transition period.
Here’s how Russia took pre-emptive action against the sanctions:
- In 2022, Russia accounted for approximately 80% of the EU’s total LPG intake. However, deliveries to Europe decreased by 27% over the first 11 months of 2024.
- Rail deliveries of LPG to Central Asia increased by 3.4 times during this period, totaling around 520,000 tons.
- Imports to China saw a significant spike of 42%, reaching 270,000 tons, according to Argus. – By the end of the first nine months of 2024, the share of Russia’s LPG deliveries to eastern markets, including Turkiye, constituted nearly half of all export deliveries.
LPG is derived from the refining of crude oil or the processing of natural gas, liquefied LPG is used for heating, cooking, as automotive fuel and for industrial purposes.
How Were Prices Impacted?
Prices for the propane-butane mix at the Belarusian-Polish border peaked at $630-632 per ton (daf Brest) on October 31, marking the highest level since December 2022.
Polish companies rushed to stockpile Russian LPG before the embargo took effect, as reported by Argus. (Sputnik)
Follow Us at Google News and WA Channel