Despite Western sanctions over its invasion of Ukraine, Russia says it has managed to redirect all of its crude oil exports to “friendly” countries.
The supposed feat was announced by Russian Energy Minister Nikolai Shulginov at an energy forum Tuesday.
“I can say that we have managed to completely redirect the entire volume of exports affected by the embargo. There was no decrease in sales,” Shulginov said.
Western-led sanctions have included an embargo on seaborne Russian oil imports, imposed after Russian President Vladimir Putin ordered troops to invade Ukraine in February 2022.
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Shulginov admitted, however, that Russian oil and gas production was expected to decline in 2023 amid ongoing sanctions and a lack of access to European consumers.
Shulginov said Russia has rerouted its oil from its European market to buyers in Asia, Africa, Latin America, and the Middle East.
India is set to account for more than half of all seaborne Urals exports this month – with China coming in at second.
Deputy Prime Minister Alexander Novak said energy revenues account for 42% of Russia’s federal budget last year – up from just over a third in 2021.
Novak said Russia’s energy industry was sustainable and urged his country to focus on increasing energy exports to so-called “friendly” countries.
Western sanctions have taken aim at Russian banks, oligarchs, and technology imports. But after a year of far-reaching restrictions aimed at degrading Moscow’s war chest, economic life for ordinary Russians doesn’t look much different than before February 2022, some officials have argued.
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But with restrictions finally tightening on the Kremlin’s chief moneymaker – oil – the months ahead will be an even tougher test of President Vladimir Putin’s fortress economy.
Reuters and The Associated Press contributed to this report.