As a result of the change, situations in which Russian oil reaches the European Union market via so-called indirect routes are excluded: petroleum products processed in a third country are not permitted to enter the EU if the crude oil used in their production originates from Russia.
According to Külli Kurvits, Head of the Customs Formalities Department of the Estonian Tax and Customs Board, importers of petroleum products must henceforth be able to demonstrate not only the origin of the final product, but also the origin of the crude oil used in its production. “The amendment puts an end to a situation where even minimal processing was sufficient to legalise the further sale of oil originating from Russia. From now on, broader due-diligence obligations are imposed on companies, with the aim of ensuring that imported or processed petroleum products have no connection to Russia. With this step, the European Union is taking an important move towards curbing the financing of Russia’s war machine,” Kurvits explained.
The restrictions do not apply to petroleum products imported from third countries such as Canada, Norway, the United States of America, the United Kingdom, or Switzerland. A simplified procedure applies to those third countries that export to the European Union petroleum products manufactured from crude oil produced in their own country.
The new measure is part of the European Union’s 18th sanctions package, which included a transitional period. The purpose of the rules now in force is to limit the use of Russia’s energy revenues to finance military activities and to close existing loopholes in the implementation of sanctions.
More detailed information on the restriction is available on the website of the Estonian Tax and Customs Board.
