According to Reuters, Chief Executive of Shell, Ben van Beurden, told journalists on Thursday that there is no way to know whether Russian crude oil is present or how much of it would enter the global refined products market.
“We do not have systems in the world that trace back whether that particular molecule originated from a geological formation in Russia…. that doesn’t exist,” he said.
According to van Beurden, if Europe imports diesel from India, it is still possible that it was processed from Russian crude, which India is not hesitant to acquire, especially if Russia gives large discounts for its grades.
He added, in response to the difficulty the West faced in barring Russian oil from the market, that “so therefore, diesel coming out of an Indian refinery that was fed with Russian crude is considered to be Indian diesel.”
Imports of Russian energy products, such as crude, refined products, and liquefied natural gas, have already been banned in the United States. In Europe, the European Commission suggested a complete embargo on Russian crude and oil product imports by the end of the year on Wednesday.
In the early days of the war, Shell, the world’s largest oil dealer, purchased a Russian crude shipment. Following a backlash over the ethics of continuing to trade with Russian oil, Shell apologised for buying Russian crude a few days later and announced its intention to phase out all Russian hydrocarbons, including crude oil, petroleum products, gas, and LNG, per new government guidance.