Insight
Russian VGO - what happens when the flow to Europe stops?
Report summary
February 2023 will see European refiners lose their primary source of VGO imports as the EU's sixth sanctions package against Russia comes into force. Wood Mackenzie's European Waterborne Product Service provides insight on where Russian VGO is currently being processed and hence those greatest affected by the ban. Utilising Wood Mackenzie's proprietary LP model, PetroPlan, we evaluate how European refiners will be impacted. Can Europe compete against USGC for VGO? Or will European natural gas prices dominate?
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