Italian energy major Eni has suspended all new purchases of oil and oil products from Russia, according to a statement sent March 10 to S&P Global Commodity Insights.
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The company is following steps being taken by other oil majors to distance themselves from Russia. Shell and BP said March 8 that they would stop all spot purchases of Russian oil and products. This came as the US announced an embargo on Russian oil imports and the UK said it would phase out supplies by the end of 2022.
Before the war in Ukraine, Russia accounted for some 30% of European crude imports and supplied around 40% of the bloc's natural gas. The UK government has been among those encouraging oil and gas companies to cut Russian ties since the invasion of Ukraine began Feb. 24.
Europe is the biggest export market for Russian oil, consuming 2.7 million b/d of crude and a further 1 million b/d of oil feedstocks and unfinished products, according to S&P Global.
S&P Global estimates that as much as 1 million-2 million b/d of Russian oil production could be shut in amid fears of energy sanctions being imposed, limited access to credit for Russian deals, and escalating shipping and cargo insurance costs.
Eni's move also comes after the European Commission unveiled March 8 new energy-security proposals that seek to reduce European demand for Russian gas by two-thirds by the end of 2022 and to make Europe independent from Russian fossil fuels "well before 2030."