After Indonesia and India, Russia is the 3rd countries considering allowance of high Sulfur after the 2020 IMO regulation, below is some consideration which make sense for the decision:
1. In domestic shipping routine, a short explanation is the cargo trade / shipping within the countries, base on present premium USD200 ( 40% higher compare to HSFO) , the increase in shipping cost will inevitably cost inflation as the cost got to be included in the end price. Increase cost of living will affect the standard of living and its wise to not see complaint from Russian citizen in a local political points of view.
2. With the international shipping route almost all countries agree to switch to LSFO, the production capacity for LSFO for international ships is always questionable even up to this moment ( NOV 2019), its might be a good idea for refinery in Russia to focus on production for LSFO. Russian refinery in the present years are the main supplier for many Asian ports and their production capacity will have a vital impact on the cargo procurement in major Asian ports.
<This is a personal blog. Any views or opinions represented in this blog are personal and belong solely to the blog owner and do not represent those of people, institutions or organizations that the owner may or may not be associated with in professional or personal capacity, unless explicitly stated. Any views or opinions are not intended to malign any religion, ethnic group, club, organization, company, or individual.
All content provided on this blog is for informational purposes only. The owner of this blog makes no representations as to the accuracy or completeness of any information on this site or found by following any link on this site. The owner will not be liable for any errors or omissions in this information nor for the availability of this information. The owner will not be liable for any losses, injuries, or damages from the display or use of this information. >
