Russia has shifted its oil exports away from Europe towards China and India, according to Deputy Prime Minister Alexander Novak.
This redirection comes nearly two years after Western sanctions were imposed on Russia due to the conflict in Ukraine.
Novak mentioned that Russia previously supplied 40-45% of oil and oil products to Europe, but this year, they anticipate this figure to be only 4-5% of total exports.
With the loss of a significant market share in Europe, Russia turned to other major buyers like China. Novak highlighted that China’s share of oil exports has surged to 45-50%, while India, previously a minor recipient, now accounts for about 40% of Russian oil supplies.
Reports suggest that India has capitalized on discounted Russian crude, refining it before selling it to European customers. Despite being legal, critics argue that these transactions create a workaround for Russian oil, weakening the impact of sanctions.
Apart from oil, Russia had to seek new markets for its natural gas exports due to reduced exports to EU nations, which sought alternative suppliers.
Despite facing multiple sanctions in 2023, Novak emphasized the successful development of the Russian energy industry. He anticipated that oil and gas revenues for the year would reach nearly 9 trillion rubles ($98 billion), a level akin to pre-conflict times in 2021.
Novak highlighted that the oil and gas industry contributes significantly to Russia’s GDP (27%) and generates the lion’s share (57%) of the country’s export revenues.
Moreover, Russia remains open to other potential buyers, citing interest from Latin American countries, African nations, and other Asia-Pacific countries in purchasing Russian oil.
