Platts will exclude Russia as potential origin in Europe T2 Ethanol assessment

Platts, part of S&P Global Commodity Insights, will no longer include Russia as part of the open origin basis of its FOB Rotterdam T2 Ethanol assessments in Europe, effective February 7, 2023.

Market feedback to Platts consultation opened Jan. 24 highlighted that flows of Russian-origin ethanol into Europe are insignificant, but that companies are nonetheless increasingly stipulating that they will not handle Russian-origin material.

Platts has therefore decided that its FOB Rotterdam T2 Ethanol assessment will no longer reflect Russian-origin material.

Platts would like to clarify that its assessments that exclude Russian-origin material reflect ethanol that is not wholly, or in part, produced, manufactured or processed in Russia; or exported from Russia.

Platts would also like to reiterate that, as per its assessment methodology, commodities supplied from countries or entities that are subject to trading embargoes and sanctions recognized under international law should not be delivered against transactions concluded during the Platts MOC process, regardless of whether the assessment reflects restricted-origin or open-origin material.

Platts initially sought feedback on the fungibility of Russian origin ethanol within its T2 FOB Rotterdam ethanol assessments, including how companies provide evidence of origin, on January 24, available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/012423-platts-seeks-feedback-on-fungibility-of-russian-origin-ethanol

Market feedback also highlighted that Proof of Sustainability documents and contractual language may prompt buyers to request further detail regarding the origin of ethanol cargoes. Platts invites further feedback on typical market practice for demonstrating the origin of ethanol and its feedstocks.

Please send all feedback, questions, or comments to Europe_Ags@spglobal.com and PriceGroup@spglobal.com.

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Platts will consider all comments received and will make comments not marked as confidential available to the public upon request.