Brazil, which has become a major buyer of Russian diesel and natural gas since the European Union imposed an embargo on Russian petroleum products, has seen imports soar as Russia finds new exports for its petroleum products banned by the EU and the United States.
Since the EU embargo on Russian fuel imports came into effect in early February 2023, Russia has shifted most of its diesel exports, which previously went to the EU, to Turkey, the Middle East, North and West Africa, and Brazil in South America.
Russia, which has shipped large quantities of diesel and other fuels to Brazil, became the South American country's largest diesel supplier last year, surpassing the United States, as cheaper Russian diesel spurred record imports.
Brazil's imports of Russian diesel in 2023 will increase from 10 percent a year ago, the Financial Times reported on Tuesday, citing official data from Brazil10,000 tonnes surged to 6.1 million tonnes, an increase of 6,000%.
Brazilian diesel imports surged 4,600% to $4.5 billion in US dollar terms, compared to $95 million worth of diesel purchases from Russia in 2022, according to Brazil** data.
Despite speculation that Brazil may sympathize with Russia under the leadership of the leftist Luiz Inácio Lula da Silva, the main reason for the surge in oil imports from Russia is the low level that Brazil hopes to bolster its large agricultural sector and keep domestic fuel relatively low.
In August 2023, Russia has surpassed the United States to become Brazil's largest diesel** country. From January to August 2023, Russia's share in the value of diesel imports in Brazil was 35., as reported by Brazilian business Valor in September6%, and by volume, Russia accounted for 406%。
Meanwhile, a surge in fuel oil exports pushed shipments of Russian refined petroleum products to their highest level in eight months in the four weeks to Dec. 31, Vortexa data compiled by Bloomberg earlier this month showed.
In its monthly analysis of Russian fossil fuel exports and revenues, the Center for Energy and Clean Air Research (CREA) said Brazil became the third-largest buyer of Russian oil products in December with a 10% share, behind the largest buyers Turkey (24%) and China (12%).
Last month, all Russian fossil fuels imported by Brazil were petroleum products. Oil imports from Russia rose 16% month-on-month, reflecting an increase in total oil imports for the month. CRERA said Russia's share of Brazil's oil imports rose throughout 2023, soaring from 13% in January to 40% in December. (Compiled by Xiao Chen).
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