Alexander Novak, Russian Deputy Prime Minister responsible for energy affairs, announced that his country has almost completely redirected its oil exports to China and India, and achieved revenues at a level similar to what it achieved in 2021 before Western sanctions were imposed on it.
Novak said that Russia, which is subject to many Western sanctions due to its war on Ukraine, today sells 45% to 50% of its oil to China, and 40% of it to India.
Novak added in an interview with the Russia 24 channel, “If we previously supplied Europe with 40% to 45% of total exports of oil and petroleum products, we expect this number not to exceed 4% to 5% by the end of the year.”
He said that despite the restrictions imposed by the West and its efforts to put a ceiling on the selling price of Russian oil, “the Russian energy and oil complex has developed successfully in 2023.”
Novak stressed that “many people want to buy Russian oil and petroleum products,” adding that “the matter concerns Latin American countries, African countries, and other countries in the Asia-Pacific region.”
He pointed out that Russia’s oil and gas revenues will reach about 9 trillion rubles ($98.3 billion) this year, which is almost the same level achieved in 2021.
He added that the energy industry constitutes 27% of Russia’s gross domestic product, and its sale abroad represents about 57% of the country’s total exports.
Western sanctions set a ceiling for the price of a barrel of Russian oil transported by sea at $60, and also prevent companies in the Group of Seven from shipping crude from Russia or insuring tanker ships if it exceeds this ceiling. The European Union banned almost all oil imports from Russia, which had until then been the bloc’s main supplier.
OPEC Plus
At the end of last November, Russia decided, in coordination with other OPEC Plus countries, including Saudi Arabia, to further reduce its oil production by 2.2 million barrels per day in the first quarter of next year in order to stimulate prices, which is a means to help Moscow increase its revenues from oil production. Selling fuel.
Novak said that Russia expects the average price of Brent crude to range between $80 and $85 per barrel next year amid the cuts made by OPEC Plus, noting that the expectations are based on the estimates of many analysts, and constitute expectations for the country’s social and economic development.
He said that OPEC Plus does not work to target a specific level for oil prices, but rather seeks to achieve a balance between supply and demand so that the industry can operate stably.