Russia, one of the largest producers of the conventional HFO, is looking to delay implementation of 2020 sulphur regulations for local waters, just over two months before the environmental regulation takes effect worldwide in a bid to reduce air pollution from commercial vessels.
As the shipping community is getting ready for the IMO 2020 from 1st January, Russia’s energy and transportation ministries are looking to postpone the stricter standards for vessels operating within the country and four other states until 2024, Energy Minister Alexander Novak told Bloomberg.
As Mr. Novak explained, the new rules would increase the price of fuel for river-sea vessels, which operate mainly in Russia’s territorial waters, at a time when energy and transportation ministries are seeking “to prevent a higher financial pressure on the nation’s shipowners.”
However, Russia will comply with IMO 2020 standards in international waters, he stressed.
The potential delay would affect the five-member Eurasian Economic Union, which also includes Kazakhstan, Kyrgyzstan, Belarus and Armenia.
The IMO 2020 sulphur cap mandates ships to run on fuel containing no more than 0.5% m/m of sulphur, from the current 3.5%, unless they have a scrubber installed.
This has created multiple cost implications for shipowners who are trying to predict which is the most efficient way of compliance between alternative fuels and scrubbers.
The Russian statement follows an earlier announcement by Indonesia that it would not comply with the regulation, due to increased cost posed by cleaner fuels and the fact that state oil company PT Pertamina still produces large amounts of high-sulphur fuel oil.
However, in August, the Transportation Ministry’s director of shipping and maritime affairs explained that the sulphur cap would eventually be implemented to every Indonesian-flagged ship from 1st January.
Similarly, an Indian official last month stated that India is thinking of not imposing the IMO 2020 sulphur regulation, but this is yet to be confirmed by the Ministry of shipping.
