Platts excludes Russian-origin material from European ULSD, gasoil barge assessments Jan 3, 2023

Effective Jan. 3, 2023, Platts is no longer reflecting Russian-origin product in its open-origin European diesel and gasoil barge assessments.

The exclusion by Platts, part of S&P Global Commodity Insights, followed a review into the continued inclusion of Russian-origin material in its European diesel and gasoil barge assessments. Platts published a subscriber note seeking feedback on April 14, 2022 and a second note extending the feedback period on the barge market on May 17, 2022. The April 14 note can be read at: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/041422-s-p-global-seeks-feedback-on-russian-product-in-platts-european-diesel-gasoil-assessments while the May 17 note can be read at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/051722-platts-to-exclude-russian-origin-product-from-european-diesel-gasoil-cargo-assessments-june-1.

Based on observed market activity and feedback, Platts understood that Russia had remained a plausible origin for spot transactions in the Amsterdam-Rotterdam-Antwerp barge market, ahead of the entry into force of European Union sanctions in February 2023. In related futures contracts, Platts noted that the ICE Low Sulphur Gasoil Futures -- a physically deliverable futures contract of 10ppm ultra low sulfur diesel -- excluded Russian-origin product starting from the January 2023 delivery period, as announced in a circular issued by the exchange on June 10, 2022.

Platts assessments reflect the value at which a standard, repeatable transaction for merchantable material takes place, or could take place, in the open spot market at arm's length. Platts only considers in its assessments the commodities that are merchantable. Merchantability may pertain to subsequent shipping and logistical issues for delivery and marketing of product.

Further guidance on sanctions and embargoed material in the Platts price assessment process is available at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/030222-further-guidance-on-sanctions-embargoed-material-in-s-p-global-commodity-insights-platts-price-assessment-processes. Clarification of the standards for assessments that exclude Russian-origin material is available at https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/062322-platts-clarifies-standards-for-assessments-that-exclude-russian-origin-material. The exclusion of Russian-origin material affects the following assessments:

Please send all further feedback, questions or comments to Europe_Products@spglobal.com and PriceGroup@spglobal.com. For written comments, please provide a clear indication if comments are not intended for publication by Platts for public viewing. Platts will consider all comments received and will make comments not marked as confidential available to the public upon request.