The report indicated that Russian revenues from the sale of oil are high, as there are still many buyers, despite the strict measures taken by the European Union.
Before the war, Russia was Russia about 7.8 million barrels of crude oil and its derivatives to Europe, but even with pledges to reduce dependence on Russian oil and gas after Russian President Vladimir Putin’s war on Ukraine, Moscow has benefited from high prices in the global market, while it restores Direct its search for buyers in Asia.
The report pointed out that the “windfalls” show how difficult it is to punish Russia, especially when so much of the world depends on Russian oil and gas.
Even with the sharp cuts in oil production expected during the current year, the Russian economy expects an increase in Russian revenues to more than 180 billion dollars due to the rise in oil prices, which is 45 percent higher than the numbers in 2021, according to the newspaper, “Restad.” Energy, a company that specializes in energy research.
The movement of oil tankers from Russia has fallen by 20% since March 8, to an average of 13 tankers per day instead of the average of 17 per day before the war and sanctions, according to a study by Spire Global for The Washington Post.
And about the export destinations that buy the most Russian oil, the newspaper pointed out that “India and China”, which ignored the sanctions on Russia, were the most buying.
India’s purchases of Russian oil rose in April to 627,000 barrels per day, compared to 274,000 barrels in March, according to S&P Global data.
The report pointed out that Asian markets have their limits for Russian oil, as crude tankers have to take long journeys to deliver their cargo.
Daria Melnik, an analyst specializing in oil markets at Rystad Energy, told the newspaper, “Russia’s production by 2030 will be 2 million barrels per day lower than it was before the war, as a result of the permanent damage from stopping production in unrecoverable wells.”
She pointed out that at this stage Russia will benefit from high prices, which may mean much higher tax revenues than in previous years, and that transferring exports to Asia will take time and huge investments in infrastructure, and in the medium term, Russia’s oil production and revenues will decrease.
On May 8, the G7 countries, which accused Russian President Vladimir Putin of “disgracing” his country through his actions in Ukraine, pledged to abandon Russian oil, but without setting a clear timetable for this end, according to an AFP report.
And the White House announced in a statement that “the Group of Seven with all its members pledged to ban or gradually prevent the import of Russian oil,” and the US presidency confirmed that this decision “will deal a severe blow to the main artery of Putin’s economy and deprive him of the revenues he needs to finance the war.”
The United States, which is not one of the largest consumers of Russian oil, has previously banned the import of oil derivatives from Russia.
European Union member states are continuing talks in order to reach an agreement on the Russian oil embargo.