# Shell tightens restrictions on Russian oil buying
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-04-27
Category: BUSINESS
Category URL: https://financedigest.com/category/business
Meta Title: Shell Tightens Restrictions on Buying Russian Oil
Meta Description: Shell stops accepting Russian content in refined products, including blended fuels, as part of its commitment to phase out buying Russian crude and natural gas.
URL: https://financedigest.com/shell-tightens-restrictions-on-russian-oil-buyinghtml

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By Ron Bousso and Rowena Edwards

(Reuters) -Shell on Wednesday tightened its restrictions on buying Russian oil, saying it would no longer accept refined products with any Russian content, including blended fuels.

Shell last month said it would phase out buying Russian crude and its involvement in all Russian hydrocarbons from oil to natural gas, after facing an uproar over buying a Russian crude cargo in the days following Moscow’s invasion of Ukraine.

London-based Shell, the world’s largest [oil trader](https://www.financedigest.com/keystone-oil-pipeline-restart-timetable-unclear-traders-worry-about-supply.html "Keystone oil pipeline restart timetable unclear; traders worry about supply"), nevertheless continued to accept products with under 50% of fuel from Russia, based on clauses in its trading contracts.

But on Wednesday it said it would no longer accept any such products from Russia.

In a bid for a jet fuel cargo on the Platts trading platform, seen by Reuters, Shell wrote: “It is a condition of this bid that the goods sold and [delivered by Seller will not be of Russian](https://www.financedigest.com/pizza-firm-dp-eurasia-delivers-profit-rise-evaluating-russian-business.html "Pizza firm DP Eurasia delivers profit rise, evaluating Russian business") Federation (RF) origin, nor have been blended with any product that was produced in RF, nor will the transport of the goods sold commence from or involve transit through RF.

A Shell spokesperson confirmed the change to its terms.

We are working to phase out Russian [oil and gas from our supply chain while protecting the energy and fuel](https://www.financedigest.com/oil-spills-and-near-misses-more-ghost-tankers-ship-sanctioned-fuel.html "Oil spills and near misses: more ghost tankers ship sanctioned fuel") supplies that millions of people rely on every day. We are making good progress and have taken a further step to tighten our trading [terms to help achieve](https://www.financedigest.com/the-journey-to-cloud-native-overcoming-hurdles-to-drive-modernisation-and-achieve-long-term-success.html "The journey to cloud-native: overcoming hurdles to drive modernisation and achieve long-term success") this,” Shell said.

The new terms do not [impact Russian crude](https://www.financedigest.com/oil-falls-as-earthquake-impact-on-crude-eases-rate-hike-fears-rise.html "Oil falls as earthquake impact on crude eases, rate hike fears rise") purchases, while Shell phases those out.

[Europe heavily relies on Russian crude oil](https://www.financedigest.com/u-s-oil-exports-to-europe-hit-record-in-march-on-steep-discounts.html "U.S. oil exports to Europe hit record in March on steep discounts") and refined products, in particular diesel and jet fuel. Russia is Europe’s biggest [oil supplier, providing just over a quarter of EU oil imports](https://www.financedigest.com/indias-reliance-makes-rare-buy-of-russian-naphtha-ups-fuel-oil-imports.html "India’s Reliance makes rare buy of Russian naphtha, ups fuel oil imports") in 2020, according to data from the bloc’s statistics office Eurostat.

Blending fuels is common practice and can occur at a company level or in [storage tanks which contain](https://www.financedigest.com/can-storage-containers-solve-the-soaring-cost-of-bricks.html "Can Storage Containers Solve the Soaring Cost of Bricks?") a mix of fuels from different countries.

Other European companies including TotalEnergies, Repsol and BP no longer [buy any refined products](https://www.financedigest.com/over-half-of-britons-say-loyalty-cards-encourage-them-to-buy-a-product-niq.html "Over half of Britons say loyalty cards encourage them to buy a product – NIQ") with Russian content.

[(Reporting by Ron Bousso and Rowena EdwardsEditing by Jane Merriman and Mark](https://www.financedigest.com/geoengineering-marks-scientific-gains-in-u-n-report-on-dire-climate-future.html "Geoengineering marks scientific gains in U.N. report on dire climate future") Potter)


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