On Wednesday, Deputy Prime Minister Alexander Novak stated that Russia has diverted its oil shipments from Europe to China and India, nearly two years after Moscow was sanctioned by the West over the Ukraine war.
Following President Vladimir Putin’s deployment of troops to Ukraine in February 2022, Western countries imposed a raft of sanctions on Russia, including a European Union embargo on seaborne oil deliveries.
“Previously, we supplied 40 to 45 percent of Europe’s oil and oil products”, said Novak, who is in charge of energy policy.
“This year, we expect the figure not to exceed four to five percent of total exports”, Novak continued.
As it lost much of its market share in Europe, Moscow shifted its focus to new clients, particularly China.
“China — whose share (of oil exports) has grown to 45-50 percent — and India have become our main partners in the current situation”, Novak noted.
India, which previously had got almost no supplies, has emerged as a big buyer.
Novak went on to say, “In two years the total share of supplies to India has increased to about 40 percent”.
According to reports, India was able to purchase inexpensive Russian crude before refining and exporting it to European customers.
While these shipments are legal, critics argue that they serve as a backdoor conduit for Russian oil, undermining the impact of the sanctions.
Russia has also been forced to find new markets for its natural gas exports as Moscow reduced deliveries to EU countries, who have also sought new suppliers.
Despite increased sanctions in 2023, the Russian energy industry, according to Novak, has grown well.
Novak predicted that Russian oil and gas revenues would reach about nine trillion rubles ($98 billion) this year, a level comparable to before the offensive in 2021.
Novak explained that the oil and gas industry accounts for 27 percent of Russia’s GDP and generates 57 percent of Russia’s export revenues.
Novak went on to say that Russia is open to other buyers.
“There are a lot of people who want to buy Russian oil. These are Latin American countries, African countries, and other countries of the Asia-Pacific region”, Novak added.
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