Russia has succeeded in redirecting its crude oil and fuel exports after the EU embargoes and the price cap set by the West, Russian Energy Minister Nikolai Shulginov said on Tuesday.
Russia hasn’t reduced its sales of crude and petroleum products, the minister was quoted as saying by Russian news agency TASS.
“As far as sanctions are concerned, it is important to not only keep the production and refining volumes but exports, too, and thus the revenues for the federal budget,” Shulginov was quoted as saying.
The minister had earlier confirmed that Russia’s oil and gas production would drop in 2023 compared to 2022.
Earlier this month, Shulginov said that Russia expects its oil and gas production to fall this year compared to 2022, partly due to the production cuts announced for March.
“For 2023, we expect oil production levels to be slightly lower, also because of the voluntary reduction in output,” Shulginov was quoted as saying by Russian news agency Interfax.
“Gas production volumes will continue to decline both due to the abandonment of the European market and the timing of the re-routing of energy flows to the East,” the Russian energy minister added.
Tanker-tracking data compiled by Bloomberg showed this week that Russia’s crude oil exports by sea have held above the 3 million barrels per day (bpd) mark in the past six weeks after the EU ban on fuel imports from Russia took effect and after Moscow said it would lower its production by 500,000 bpd.
Russia said last week it would continue its 500,000-bpd crude oil production cut through the end of June this year. Initially, Russia intended to cut that amount from its production in March.
“It remains to be seen if there will be sufficient appetite for Russian oil products now that the price cap is in place or if its production will start to fall under the weight of sanctions,” the International Energy Agency (IEA) said in its Oil Market Report for March.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com:
- North American LNG Projects Plagued By Price Volatility
- Latin America’s Bid To Challenge China’s Dominance In The Lithium Market
- Kurdistan’s 400,000-Bpd Oil Exports Still Shut-In As Talks With Iraq Fail