Ukraine war Finland Releases 369,000 Barrels of Crude Oil to the Market From Emergency Stockpiles
Porvoo refinery in Finland concentrates in production of traffic fuels. (Photo: Neste oil)
This collective action helps to provide stability to the oil market as Russia’s invasion of Ukraine continues.
In this way Finland will participate in the unanimous decision made by the Governing Board of the International Energy Agency (IEA) on 1 April 2022, according to which IEA member countries will release oil products to the market from their emergency stocks. This collective action helps to provide stability to the oil market as Russia’s invasion of Ukraine continues.
The IEA announced on 7 April 2022 that IEA member countries had agreed to make a total of 120 million barrels of their emergency oil stocks available to the market. The United States accounts for the largest part of this amount.
This is the second time since the start of Russia’s invasion that IEA member countries have agreed to release crude oil from their emergency stocks. A total of 61.7 million barrels of oil were released to the global market at the beginning of March. Finland’s first contribution was similar in size to what it is now.
In a press release from the Finnish Ministry of Economic Affairs and Employment, the ministry informs that Finland’s contribution will be released from the emergency stockpiles managed by the National Emergency Supply Agency. In practice, crude oil will be sold at the market price, so it will have no negative economic effects. The sale will not have a significant impact on Finland’s general security of energy supply.
The amount to be released to the market is not large in relation to Finland’s emergency and obligatory stockpiles of oil products. The stock levels will remain above the levels required by international obligations and the government decision on Finland’s security of supply.
In Finland, emergency oil stocks are in the form of the state emergency stockpiles owned by the National Emergency Supply Agency, and obligatory stockpiles held by importers of oil. Provisions on these are laid down in the Security of Supply Act and the Act on the Obligatory Stockpiling of Imported Fuels. By maintaining these emergency stockpiles, Finland meets the obligations concerning oil stocks set by the IEA and the EU.
These obligations include maintaining oil reserves equivalent to 90 days of net imports.
