Spain to probe claims of Russian oil flooding Europe despite sanctions

By Alyssa McMurtry

OVIEDO, Spain (AA) - Spain's energy minister on Friday said the country will investigate claims that Russian oil is still entering the Spanish and European markets, despite sanctions.

The CEO of Spanish oil company Repsol on Thursday expressed concerns that Russian diesel was gaining backdoor access to the EU through intermediary countries.

Energy Minister Teresa Ribera said that while all imports appear legal on paper, it is the government's responsibility to examine the claims.

"Even if there is even the slightest suspicion, we must investigate the documents and verify if the imported products are indeed from where they claim, or if they have a different origin and some irregularity has occurred," Ribera told reporters.

Spanish daily El Mundo later reported that Spain will request Brussels to strengthen the traceability of oil imports.

In February, the EU, which heavily relied on Russian oil, banned direct crude imports and oil products as part of its sanctions against Russia for its war in Ukraine.

Repsol CEO Josu Jon Imaz, however, said in a conference call with investors that Russian oil is still being sold on European markets.

Imaz blamed this activity for driving down Repsol's refining margins.

“We are asking European authorities to stop this import of Russian products through intermediary destinations. First of all, because it’s what the EU is doing to press Russia to stop the invasion of Ukraine. Secondly, because it’s fair. It’s fair because some companies are complying with the sanctions regime,” he added.

Nevertheless, the EU sanctions do not prevent third countries from purchasing cheap Russian crude oil, refining it, and shipping it to Europe.

Under the rules, European firms are even permitted to ship and insure Russian petroleum products, but only if purchased at or below the oil price cap, set at $60 per barrel for crude oil.

In February, the Wall Street Journal also reported on concerns that Russian oil products are simply being blended with other oil products and re-exported to disguise its true origin and evade sanctions.