Ukraine starts checking LPG from EU, fearing Russian supply

KYIV, March 12 (Reuters) – Ukrainian energy customs have started inspections of imported liquefied petroleum gas (LPG) produced in the European Union by blending components, fearing that some of them may have come from Russia, the customs agency said on Tuesday.

Ukraine bans imports of products made in Russia, which invaded Ukraine in 2022.

“In case of receipt of information about goods produced by simple mixing, the components of which originate from the country of aggressor Russia, such goods will be banned for import into Ukraine,” the customs agency said on Facebook.

Ukraine imported significant amounts of LPG from Russia until 2022, but after the invasion it switched to buying fuel mainly of European origin.

However, analysts say that some European traders supply Ukraine with gas that is partly of Russian origin, and the share of such gas in February was about 50%.

“This became possible due to the actions of traders who declare themselves as producers on the basis of a production licence,” specialist fuel outlet Enkorr said on the Telegram messaging app.

“However, such actions are unjustified, as the traders’ facilities do not have the appropriate technological equipment, and mixing gas from different producers does not fall under the concept of production according to the EU Customs Code,” it added.

Analysts say a significant amount of LPG comes from Poland, which is also a major importer of Russian fuel.

According to traders and LSEG data, growth in sea-borne imports of LPG to Poland slowed to 7% in 2023, reaching 1.084 million metric tons, after a jump of more than 70% in 2022.

Poland also remained the main destination for Russian LPG, which was banned by the European Union last month over the conflict in Ukraine.

According to the Polish Association of Liquid Gas (POGP), Russia’s share of total LPG supplies to Poland was more than a half, at 1.288 million tons, in the first half of 2023. (Reporting by Pavel Polityuk Editing by Mark Potter)

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