According to deputy prime minister, sales to India will increase in 2022 as European purchasers shift to other markets following the Ukraine conflict.
Russian oil shipments to India increased more than 22-fold last year as European buyers sought alternative markets following the turmoil in Ukraine, according to Russia’s deputy prime minister.
“Most of our energy resources were redirected to other markets, to the markets of friendly countries,” Alexander Novak said in comments carried by Russian news agencies on Tuesday.
“If for example, we take oil supplies to India, they increased 22 times last year,” he said.
Russia Shipments
Last year, Russia moved its oil shipments to India and China as European Union members attempted to reduce their reliance on Russian energy supplies following Moscow’s incursion into neighbouring Ukraine.
In December, the EU implemented an embargo on seaborne Russian oil, along with a price restriction on Russian petroleum agreed upon with the Group of Seven industrialised states.
The change has resulted in lower Russian energy imports for “friendly” countries, primarily China and India.
According to Novak, energy income will account for 42% of Russia’s federal budget in 2022, and the country’s energy economy will be sustainable despite the problems posed by Western sanctions.
Novak, who is in charge of Russia’s energy sector, also noted that supplies to China were increasing as a “result of the great work that has been done in the industry”.
In reaction to the Western sanctions, Russia, a major producer and important ally of the OPEC oil cartel, reduced crude production by 500,000 barrels per day this month.
Novak stated last week that the output cut, which represents to 5% of daily production, would be maintained through June.
He stated that the action was made in response to Western sanctions aimed at limiting Moscow’s capacity to fund its military.
According to the International Energy Agency, Russia’s oil export revenue fell by over half in February compared to the previous year.
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