Russian oil export is almost completely redirecting to Asia 

Russian Deputy Prime Minister responsible for energy affairs Alexander Novak announced on Wednesday that Russia has almost completely redirected its oil exports to China and India, and achieved revenues at a similar level for 2021.

Novak said that Russia, which is subject to many Western sanctions because of its war on Ukraine, today sells 45-50% of its oil to China and 40% to India.

Novak added in an interview with the Russia 24 channel, “If we previously supplied Europe with 40-45% of total exports of oil and petroleum products, we expect this number not to exceed 4-5% by the end of the year”.

Novak welcomed the fact that, despite the restrictions imposed by the West, which especially wants to put a ceiling on the selling price of Russian oil, the Russian energy and oil complex has developed successfully in 2023.

Novak confirmed that many people want to buy Russian oil and petroleum products, adding that the issue concerns Latin American countries, African countries, and other countries in the Asia-Pacific region.

He pointed out that Russia’s oil and gas revenues will reach about 9 thousand billion rubles (about $88 billion) this year, or almost the level of 2021, before the sanctions.

He added that the fuel industry constitutes 27% of Russia’s gross domestic product, and its sale abroad represents about 57% of the country’s total exports.

At the end of November, Russia decided, in coordination with other OPEC+ countries, including Saudi Arabia, to further reduce its oil production in order to stimulate prices, a means that helps Moscow increase its revenues from the sale of fuel.

As for gas, Novak indicated that the liquefied natural gas (LNG 2) project began despite the US sanctions that put its launch at risk.

Novak added, “The LNG 2 plant in the Arctic is currently under construction, and the first phase has begun work… We expect the first deliveries of this project to take place early in the first quarter of next year”.

Media reported that Russian gas giant Novatek, which owns 60% of the giant project, at one point in December invoked “force majeure,” a legal clause that allows companies to suspend deliveries due to factors beyond their control.

Russia, which currently produces 8% of the world’s liquefied natural gas, plans to reach 15 and 20% by 2035, or a production level of 100 million tons annually.