Platts excludes Russia as potential origin in Europe T2 Ethanol assessment

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

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

Platts FOB Rotterdam T2 Ethanol assessment, therefore, no longer reflects 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 Jan. 24, available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/012423-platts-seeks-feedback-on-fungibility-of-russian-origin-ethanol

Platts also published its decision to exclude Russian-origin material from its T2 FOB Rotterdam ethanol assessments on Feb. 6, available here: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/020623-platts-will-exclude-russia-as-potential-origin-in-europe-t2-ethanol-assessment

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.

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.