Volume 5 Issue 19
The European Union announced last week firm plans to impose an embargo on Russian oil and refined products, including base oils and lubricants, by the end of 2022. The Russian refiners who export base oils will be hit hard by the measure, part of the sixth round of EU sanctions imposed in the wake of Moscow’s military invasion of Ukraine. The embargo is similar to the one imposed against Iranian oil for many years, which was lifted by the EU in 2016.
Shell is negotiating with an unidentified party to sell its lubricant blending plant in Torzhok, Russia, along with its network of fuel stations in the country, an official said last week. The talks are in line with the energy giant’s previous statements that it would exit all activities in Russia in reaction to the country’s invasion of Ukraine.
BP reported that the underlying replacement cost profit before interest and tax for its Castrol lubricants business was down more than 20% for the quarter ending March 31, due in part to higher costs. Nigerian lubricants blender and marketer Conoil posted a large decrease in gross profit despite higher sales revenue, also reflecting the impact of increased costs.