Overview
- The EU now bans oil products made from Russian crude regardless of where they are refined, using a 60‑day same‑refinery test tied to CN/KN 2710 while excluding items like reformat and bitumen.
- Exchanges and major buyers are imposing stricter criteria than the law, with ICE applying port‑level restrictions and Energy‑LEAP clauses sidelining products from sites that recently processed Russian crude.
- Reliance says its export unit has been segregated from Russian crude since late November and it plans to resume sourcing “sanctions‑compliant” barrels after a February–March pause, while Turkish plants show mixed approaches.
- Tüpraş continued using Russian crude at its Körfez refinery as its Aliağa site appeared to halt such receipts since late November, and Socar Star in Aliağa processed Russian oil at least until January 15.
- Market effects include a roughly $25 per barrel Urals discount to North Sea grades, mounting pressure on Russia’s budget, an IMF growth downgrade for 2026, and analyst warnings of price volatility with particular risk for jet fuel in Europe.