Finland imported its last cargo of Urals oil in July 2022, according to the annual report of the state's only refiner Neste Oil, ending its purchases of Russian oil, including under long-term contracts.
Russian oil imports, at 1.5 million tonnes, accounted for
just 17% of Finland's total crude imports in 2022, down from 84%
a year earlier. Shipments from Norway more than quadrupled to
5.65 million tonnes, or 65% of the total.
Neste Oil did not immediately respond to a request for
comment.
Finland had relied almost exclusively on Urals as a refinery
feedstock as the proximity of the Russian ports of Primorsk and
Ust-Luga made for shorter and cheaper tanker trips.
The closest alternative to Urals in the region is Norway's
Johan Sverdrup grade, of which Finland imported some 3.5 million
tonnes, or about 10% of output, last year, according to
Refinitiv Eikon data.
Finland also took Norwegian grades Oseberg, Troll and
Gudrun, and Forties and others from the UK. It imported 0.6
million tonnes of U.S. WTI.
The cost of Oseberg and Troll averaged about $103 per barrel
in the year to March 2023, according to Refinitiv data, while
the average price of Urals over the same period was $69 per
barrel.
Johan Sverdrup normally trades a few dollars a barrel below
Oseberg and Troll, traders said.
Transporting North Sea oil grades to Finland costs about
$2-3 per barrel compared with Urals freight costs of below $0.50
per barrel from Russia's Baltic ports to Finland's Porvoo.
Although the shift in purchases added to Neste's refining
costs, margins were generally good last year as EU states
reduced purchases of Russian oil products and global prices
rose, traders said.
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Finland's oil imports 2022 Finland's oil imports in 2021 ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Reuters; Editing by Kirsten Donovan)
