No way to trace Russian crude oil refined abroad: Shell CEO

LONDON (Reuters) – The world has no system to track Russian oil because it is refined abroad, the head of Shell said on Thursday, meaning efforts by Western governments to ban its use can only go so far until a certain point.

While Europe is considering joining the United States and Britain in banning imports of crude oil and refined products of Russian origin, the sanctions do not cover imports of fuels such as diesel and jet fuel from refineries in other countries that could be produced at from Russian crude.

Shell, the world’s largest oil trader, no longer trades Russian oil and plans to terminate most of its long-term purchase contracts from Russia by the end of the year.

“We don’t have systems in the world that track whether that particular molecule originated from a geological formation in Russia … that doesn’t exist,” Shell Chief Executive Ben van Beurden told reporters after the company Britain reported a record profit in the first quarter.

Related  Huawei promotes Meng Wanzhou to rotating president after returning from Canada

Russia supplied more than a quarter of Europe’s crude oil and refined products last year.

Current sanctions do not take into account where Russian crude is refined and treated, he said.

“So therefore the diesel that comes out of an Indian refinery that was fueled with Russian crude is considered to be Indian diesel.”

(Reporting by Ron Bousso. Editing in Spanish by Marion Giraldo)

News and Images Source