Russian oil is finding its way to U.S. via fuel imports
WASHINGTON — Despite the U.S. ban on Russian crude, Russian oil is still finding its way into the U.S. market through the import of refined fuels such as gasoline and diesel, according to a new report from the European nonprofit Centre for Research on Energy and Clean Air.
Even as the United States and some European nations have banned Russian crude since the Ukrainian invasion in January, countries including India, France, China, United Arab Emirates and Saudi Arabia have increased imports, which they then refine and sell onto the world market.
Last year imports from those nations constituted 10 percent of all U.S. refined product imports, with India and Saudi Arabia leading the way, according to federal data.
The report comes three months after President Joe Biden announced a ban on Russian crude, coal and liquefied natural gas, to pressure Russian President Vladimir Putin into ending the war. But that order did not stop companies from importing fuels refined from Russian crude.
“India became a significant importer of Russian crude oil (after the invasion), buying 18 percent of the country’s exports,” the report said. “A significant share of the crude is re-exported as refined oil products, including to the U.S. and Europe, an important loophole to close.”
The U.S. ban, along with those in Poland, Lithuania, Finland and Estonia, have put a dent in Russian crude exports. In addition, the European Union recently agreed to ban most Russian oil.
As a result, Russian crude is selling at a discount on the world market. But the steep rise in crude prices over the past six months means that Russia is earning $20 billion a month from oil exports, 50 percent more than they did last year, according to the International Energy Agency. Oil settled just below $121 a barrel in New York Monday, compared to about $71 a year earlier.
In the first 100 days after Russia invaded Ukraine, the biggest buyer of Russian crude was China, followed by the Netherlands, Italy, Germany and Turkey, according to the report.