Russia's Deputy Prime Minister, Alexander Novak, revealed a staggering drop in the country's oil exports to Europe in 2023. Previously comprising nearly 45% of the market, Russia's exports of oil and related products to Europe have plummeted to a mere 5%, marking a significant downturn.
Speaking to Rossiya 24, Novak highlighted the substantial shift, noting that Russia had typically supplied between 40% to 50% of oil and petroleum products to Europe. However, projections for the current year indicate a sharp decline, expecting the figure to remain below 4% or 5% of total exports.
In light of this decline, Russia has pivoted its focus towards new partners in Asia, particularly China and India. China now accounts for up to 50% of Russia's oil trade, while India's share has surged from zero to approximately 40% over the past two years.
The shift in strategy comes after Russia's decision to halt oil shipments to nations enforcing a price cap, redirecting its exports to Asian markets, notably China and India, offering substantial discounts.
This altered approach stems from measures taken by the European Union and G7 nations, which banned seaborne crude exports from Russia on December 5 of the previous year and imposed a price ceiling of $60 per barrel for crude oil. Following suit, on February 5, a similar ban was enforced on refined petroleum products, maintaining the $60 per barrel price cap.
As Russia's oil exports undergo a significant transformation, its focus on Asian markets seems poised to reshape its trading dynamics and partnerships in the global oil industry.
India Introduces 'Bharat' Branded Rice at Fixed Price Amid Soaring Rates
Govt Extends Relief on Lentil Import Duties for Another Year