Neste’s response to the war in Ukraine

(Updated on 20 July 2022)

We are appalled and concerned about the war in Ukraine, which is a clear violation of international law and principles of human rights. Neste, along with so many businesses and individuals, condemns the invasion by Russia.

Neste announced earlier it had decided to stop using Russian crude oil entirely and replace the Russian crude oil with other qualities, such as North Sea oil, due to the war in Ukraine. From the beginning of April onwards, Neste has been replacing the Russian crude oil with other qualities within the frame of existing supply contracts and technical capabilities. We have not bought Russian crude oil on the spot market since the start of the war, and we are not making any new supply agreements of Russian crude oil or fossil feedstocks.

The last of the crude oil cargoes from Russian origin arrived at the Porvoo refinery on Wednesday 20 July 2022, and the supply contracts for Russian crude oil have now ended. The remaining supply contracts for other fossil feedstocks end by the end of the year.

Neste does not have any natural gas sourcing agreements directly with the Russian gas producers. Instead, similarly to the majority of industrial operators, we source natural gas via national grids from gas marketing companies. Neste can replace natural gas with other alternatives, and we have already actively worked towards their introduction into our processes. The disruption of natural gas supplied from Russia on 21st May 2022 has not affected the operations of Neste's Porvoo refinery or product deliveries.

Neste does not buy renewable raw materials from Russia and will not make any new agreements to buy renewable raw materials from Russia in the current situation. Russia has not been an important source of renewable raw materials for us; in recent years, we have obtained very small volumes of renewable waste and residues from Russia that meet the sustainability criteria of European legislation.

The renewable raw materials for Neste's renewable products are sourced globally, and we have invested in developing supply chains in Europe, the USA and the APAC region.

We continue to closely monitor the development of sanctions and are prepared to react to possible changes. Neste, among other companies and organizations in the energy sector, has a central role in the security of supply of energy in Finland. For this reason, the changes are implemented in a controlled manner so that we can fully secure product deliveries and safe continuation of our operations.

Our strategic goal is to become a global leader in renewable and circular solutions. We are committed to combating climate change and reducing climate emissions through both global and local efforts. Our goal is to reduce customers' greenhouse gas (GHG) emissions with our renewable and circular solutions by at least 20 million tons of CO2 eq annually by 2030, reach carbon neutral production by 2035 and to reduce the use phase emission intensity of sold products by 50% by 2040 compared to 2020 levels. We also aim to make Porvoo the most sustainable refinery in Europe by 2030.