Russian oil export pivot succeeding – energy minister

The country has found buyers for all of the supplies at risk of being stranded due to sanctions

Moscow has completely redirected all of its oil exports from ‘unfriendly states’ to new markets, Energy Minister Nikolay Shulginov stated on Tuesday.

According to the minister, supplies are now destined to Asia, Africa, Latin America, and the Middle East.

“Already we can state that we have managed to fully redirect the entire volume of exports which initially fell out due to sanctions. There is no decrease in sales,” Shulginov stated.

Earlier on Tuesday, the deputy prime minister and former energy minister, Aleksandr Novak, also noted that the volume of exports to India alone rose by 22 times in 2022. Russia also became China’s top oil supplier in the first two months of 2023, with delivery volumes in January-February surging 23.8% year-on-year.

Late last year, the EU stopped accepting Russian oil transported by sea, while a G7-led coalition imposed a price cap on seaborne Russian crude at $60 a barrel. Russia responded by banning oil deliveries to foreign buyers whose contracts mention the price cap.

Another round of sanctions came into effect on February 5. Brussels placed an embargo on imports of seaborne Russian oil products, also complemented by a price cap. The limit was set at $100 per barrel for petroleum products trading at a premium to oil and $45 per barrel for those trading at a discount.

READ MORE: Indian imports of Russian oil skyrocket – official

Despite the sanctions, Russia increased both oil exports and crude production last year, by 7.6% and 2%, respectively. This year, Russian energy companies have been raising output further, with the average daily production of crude oil and condensate reportedly growing by almost 2% in February compared to the previous month.

Find more stories on economy and finance in TROIB business