Baltic states doubled their import of Russian LPG
Eestlased Venemaal | 30 Jan 2023  | EWR
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Russian exporters more than doubled sales of liquefied petroleum gas to the Baltic states in 2022, some of which was sold on to Ukraine, reports Reuters.

This significant increase comes despite strong opposition to Moscow's actions in Ukraine from the three Baltic states, all members of EU and NATO.

LPG, is mainly used to fuel cars, for heating and to produce other petrochemicals. It has been exempt from Western sanctions against Russia.

According to Reuters calculations based on data collected from the three traders and freight handlers covering the region, Russia boosted LPG combined sales to Latvia, Lithuania and Estonia to 331,000 tonnes from 159,000 tonnes in 2022.

The increase came as Ukraine and some other countries refused to buy the Russia-sourced fuel directly.

According to the data, Russian LPG supplies to Latvia accounted for 90% of the country's total LPG imports in 2022, while Lithuania got half of its intake from Russia and the rest from Latvia.

Traders said excess volumes of LPG had been sold on from the Baltics to Ukraine in recent months. They said Latvia and Lithuania supplied some 15,000 tonnes to Ukraine in December alone, accounting for 15% of Ukraine's total LPG imports that month.

They said LPG from Russia is much cheaper than supplies from other countries such as Poland and Romania, as export options have been limited since Russia entered Ukraine.

"Ukrainian companies buy propane-butane (LPG) from Lithuania and Latvia, which is with high probability of Russian origin. However, the price difference of $150-$200 per tonne in comparison with Poland and Romania allows (them) to turn a blind eye to the country of origin," a trader covering the Baltic states said.

He added that there is no official Ukrainian ban on importing Russian LPG. Ukraine's energy ministry did not comment when contacted by Reuters.

 
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