Platts clarifies standards for assessments that exclude Russian-origin material

Following its decisions to exclude Russian-origin material from several of its refined oil products assessments globally, Platts, part of S&P Global Commodity Insights, would like to clarify the origin standards reflected in these assessments.

This follows a consultation note published April 14, seeking feedback on the definition of non-Russian origin in the Platts price assessment process: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/041422-s-p-global-seeks-feedback-on-non-russian-origin-for-platts-oil-product-assessments.

Platts would like to clarify that its assessments that exclude Russian-origin material reflect oil that is not wholly, or in part, produced, manufactured or processed in Russia; or exported from Russia. These assessments also reflect transactions where the performing vessels are not Russian flagged/registered or Russian owned.

Given the growing sanctions on Russia, Platts understands trade practices and standards continue to evolve in different regions and markets. Platts monitors evolving market practices on an ongoing basis and continues to invite industry feedback. Platts will provide additional guidance to its assessment standards as and when required.

Platts is aware that several market participants continue to use a variety of contractual language related to origin restrictions. Platts may continue to publish terms around origin restrictions, provided they are consistently applied and accepted as part of normal trading practice in that market and region.

For trades published in the Platts Market on Close process, a seller would be expected to meet a buyer's typical and reasonable requests for proof of origin, as detailed in a subscriber note published April 11: https://www.spglobal.com/commodityinsights/en/our-methodology/subscriber-notes/041122-s-p-global-clarifies-moc-performance-expectations-on-restricted-origin-trades-for-oil-products.

Platts understands that this typically includes a certificate of origin and a bill of lading in cargo markets. For trades in cargo and barge markets where Russian-origin material is not reflected, a request for a seller's warranty on origin should not be unreasonably rejected.

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.

Please send any further feedback, questions or comments to Europe_products@spglobal.com, asia_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.