Galp cancels Russian fuel orders

 In Energy, News

The Portuguese energy company Galp has suspended the purchase of fresh orders of petroleum products from Russia which is the largest supplier of gas oil in the world.

The decision will have an immediate impact on refinery production in Sines which Galp operates, but shareholder and non-executive president, Paula Amorim says she will no longer indirectly finance the war against Ukraine by buying Russian oil products.
“This terrible act of aggression from Russia against Ukraine absolutely violates the values that Galp defends such as Freedom and Human Rights. Within a context that is so complex and terrible, our decision is simple. Galp will not contribute towards financing the war”.
Galp’s executive president Andy Brown states “the massive invasion of the Ukraine by Russia is a hard blow for the free world. Our support goes out to the Ukrainian people which is facing this aggression. We are exploring ways that Galp can support collective humanitarian efforts”.
In addition to being the largest supplier of gas oil to Europe, Russia is responsible for half of the world’s production of Vacuum Gas Oil (VGO) which is one of the raw materials used for diesel at the Galp managed refinery at Sines.
Considerable investment was made at the refinery 10 years ago with an expansion of the industrial infrastructure to produce more gas oil and less fuel and asphalt products which bring less added value.
This investment sought to reduce imports, but the production of diesel continues to require VGO to be imported.
Galp has followed the path announced by other companies in the sector. BP is selling its position in the Russian company Rosneft and Shell has announced it will cut relations with the Russian market.
In Portugal, the fuel distribution company Prio was one of the first to suspend buying petroleum products from Russia.