Russia says it has rerouted all oil exports, India the biggest buyer
Russia has successfully redirected all its crude oil exports affected by Western sanctions over Ukraine to “friendly” countries, Energy Minister Nikolai Shulginov said on Tuesday (28 March), while still a decline in oil and gas output this year.
The EU imposed an embargo on seaborne Russian oil in December alongside a price cap on Russia crude that was agreed with the Group of Seven industrialised powers.
The shift has meant cheaper Russia energy imports for China and India.
“I can say today that we have managed to completely redirect the entire volume of exports affected by the embargo. There was no decrease in sales,” Shulginov told an energy forum.
Shulginov reiterated that Russian oil and gas production was expected to decline in 2023, as Moscow comes under pressure from Western restrictions and a lack of European buyers.
Shulginov said Russia had been working to reroute its oil and oil product exports to Asia, Africa, Latin America and the Middle East from its traditional markets in Europe.
India the biggest buyer
India was the biggest buyer of Russia’s benchmark Urals grade crude in March. Deliveries to India are set to account for more than 50% of all seaborne Urals exports this month, with China in second place.
Novak said energy revenues accounted for 42% of Russia’s federal budget in 2022, up from 36% in 2021. He said Russia’s energy industry was sustainable, despite the challenge of Western sanctions