As Russian diesel imports to the Middle East rise, so do exports from the region to Europe and Africa

After the European Union banned imports of refined petroleum products from Russia at the start of this year, in addition to Russian crude oil, the volume of diesel shipments from Middle Eastern countries began to rise sharply. Rising imports of Russian diesel are also helping to boost diesel exports from the Middle East: Russian traders have had to offer their product at a discount to find alternative buyers.

Diesel imports from Russia to Saudi Arabia and the United Arab Emirates have risen considerably since the start of this year, reaching at least 500,000 tonnes during March, according to Reuters. A year ago, almost no Russian diesel was flowing into the region. According to the agency, just over 10% of Russian exports went to the Middle East in February and March.

Saudi Arabia imported 261,000 tonnes of Russian diesel during March and early April, the highest volume on record. In March, Russian traders sold their diesel for $60 to $70 per barrel, about $20 per barrel cheaper than diesel prices in the Middle East, according to traders who spoke to Reuters. However, this price does not include transport or insurance costs. Even so, selling at this price gives traders continued access to the Western tanker fleet and insurance services, since the G7 and the EU set the price cap for diesel at $100.