EU proposes phasing out Russian crude oil imports within six months

The EU plans to phase out Russian crude oil imports within six months, European Commission President Ursula von der Leyen said May 4.

She added that the EU is also considering phasing out imports of Russian refined products by the end of 2022.

"Today we will propose to ban all Russian oil from Europe. This will be a complete import ban on all Russian oil, seaborne and pipeline, crude and refined," Von der Leyen said in a speech to the European Parliament.

Europe is particularly dependent on Russian oil and was importing about 2.7 million b/d of crude and another 1.5 million b/d products, mostly diesel, before the Feb. 24 invasion.

The conflict sparked self-sanctioning by European refiners and independent traders that has seen seaborne flows of Russia's Urals crude, heavy fuel oil, vacuum gasoil and naphtha into the region drop.

"We will make sure that we phase out Russian oil in an orderly fashion. So in a way that allows us and our partners to secure alternative supply routes and at the same time be very careful that we minimize the impact on the global market," she said.

S&P Global Commodity Insights expects to see a loss of nearly 3 million b/d in crude and products exports from Moscow in the coming months, as more buyers shun Russian oil.

The war in Ukraine has resulted in Russia's key grade Urals trading at significant discounts.

Platts assessed Urals at $71.48/b and Dated Brent at $106.13/b on April 29, S&P Global data showed. Urals was assessed at $90.72/b and Dated Brent at $100.48/b on Feb. 23 – the day before Russia invaded Ukraine.