The European Union's ban on importing oil products refined from Russian-origin crude in third countries took effect Tuesday. The measure targets a loophole that allowed Russian oil to reach Europe after processing in India, Turkey, and China.
EU refiners and traders must now verify the origin of crude used to produce imported fuels. Diesel and jet fuel from refineries that process significant Russian barrels face restrictions.
India and Turkey in crosshairs
Indian refiners Reliance Industries and Nayara Energy have ramped up Russian crude purchases since 2022, exporting refined products to Europe. Turkey's Star refinery, owned by Azerbaijan's SOCAR, also processes Russian grades.
The ban forces these facilities to either reduce Russian feedstock or find alternative markets for their output. Both countries have pushed back against what they call extraterritorial sanctions.
Limited price impact expected
Analysts see modest effects on fuel prices. European diesel margins may tighten slightly as buyers scramble for compliant supply. But ample global refining capacity should prevent major dislocations.
Brent crude held steady at $65.30 per barrel Tuesday, with traders viewing the ban as largely symbolic. Russia has already redirected most of its crude exports to Asia.