Russia may step up exports of fuels to Asia as EU sanctions tighten

Russia may try to push greater volumes of a key oil product into Asia, possibly blending some with crude oil, in a bid to find alternative markets as European sanctions tighten, according to FGE.

More Russian-made naphtha — a fuel primarily used to make plastics — is likely to head into hubs such as Singapore and Fujairah from February when EU sanctions kick in, said Armaan Ashraf, global head of natural gas liquids at the consultancy. Re-exports from these regions could become common as some buyers shy away from direct imports from Russia, he said in an interview.

Moscow’s invasion of Ukraine has caused turmoil across energy markets this year, and that disruption is set to extend into 2023.