Well, it’s official. Canada is formally looking to ban imports of oil from Russia on a go forward basis following Russia’s actions against Ukraine. While the initial announcement was made before the close of markets, it appears that the government has now solidified their intentions via a formal press release.
The government describes the move as being “strong and decisive action,” as it looks to punish Russia where possible for its actions. The release itself said that the country “will ban crude oil imports from Russia.” However, it then highlighted that purchases from the nation reportedly have not occurred since 2019, when the last oil was imported to be processed at the since idled Come by Chance Refinery in Newfoundland.
A timeline for the official implementation of the ban was not provided, however the government did indicate that no set expiry date has been set on the ban. It also said they are taking steps to “identify additional petroleum products that may be included in this ban.”
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In terms of imports of oil, 77% of imported oil came from the United States in 2020, followed by Saudi Arabia at 13%, Nigeria at 4%, Norway at 3%, and the remainder coming from other regions. In 2019 however, before demand for oil products declined significantly due to the pandemic, the Russian Federation accounted for 3% of all oil imported to Canada, or 0.02 thousand barrels per day.
Canadian import data for 2021 is not yet available.
The United States, by comparison, in 2021 imported 245.2 million barrels of oil from Russia based on monthly data provided by the US Energy Information Administration. The figure represents an increase from 197.7 million barrels in 2020, and 189.8 million barrels in 2019.
Information for this briefing was found via the Government of Canada, StatCan and the EIA. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
