Eni Suspends the Purchase of Oil from Russia
MILAN (Reuters) — Italian energy group Eni has suspended the purchase of oil from Russia following its invasion of Ukraine and is watching developments closely with regards to gas procurement.
"Eni has suspended the stipulation of new contracts related to the procurement of oil and oil products from Russia," the company said.
Western sanctions imposed after the invasion of Ukraine have already cut off Russia from international trade and financial markets. Until this week its energy exports were exempted from the sanction’s regime.
But on Tuesday, U.S. President Joe Biden announced a broad ban on oil and other energy imports from Russia which is the world's biggest exporter of oil and natural gas.
Eni, which had already frozen joint ventures with Russian oil group Rosneft following sanctions imposed in 2014, also has long-term take-or-pay gas contracts with Gazprom.
Earlier on Wednesday, when asked what it would do with these contracts if sanctions on Russia's energy sector tightened, it said it would fully "honor every decision taken by the European and Italian institutions".
This week European Union leaders are set to try and phase out the EU's dependency on Russian energy sources, including Russian gas which accounts for 45% of the bloc's import requirement.
Eni, in which the biggest shareholder is the Italian state, bought 22.5 billion cubic meters (Bcm) of Russian gas in 2020 out of a total of around 62 Bcm.
Last week it said it would sell its stake in the Blue Stream pipeline carrying Russian gas to Turkey co-owned with Russian gas giant Gazprom.
Italy, which uses gas to generate some 40% of electricity, imports more than 90% of its gas needs, with Russian piped flows accounting for around 40%.
Since Russia invaded Ukraine, Italy has ramped up efforts to secure alternative gas sources in producer countries like Algeria, Qatar and Azerbaijan.
Eni, which has extensive gas resources in Africa, has strategic long-term gas contracts with Algerian state energy giant Sonatrach.
Related News
Related News

- Energy Transfer Wins New York Court Ruling in $150 Million Pipeline Fraud Case
- $3 Billion Natural Gas Pipeline Expansion to Add 1.3 Bcf Capacity in Southeast Region
- Trump Puts Keystone XL Pipeline Back in Discussion, Though Revival Faces Developer Resistance
- Boardwalk Approves 110-Mile, 1.16 Bcf/d Mississippi Kosci Junction Pipeline Project
- Kinder Morgan Approves $1.4 Billion Mississippi Crossing Project to Boost Southeast Gas Supply
- Enbridge Should Rethink Old, Troubled Line 5 Pipeline, IEEFA Says
- GOP Lawmakers Slam New York for Blocking $500 Million Pipeline Project
- Texas Oil Company Challenges $250 Million Insurance Collateral Demand for Pipeline, Offshore Operations
- Phillips 66 to Sell $865 Million Stake in 500-Mile Gulf Coast Express Pipeline to ArcLight
- NDT, Aramco to Launch 56-Inch Inspection Tool
Comments