Russia says oil sales to India soared 22-fold last year

Sales to India surged in 2022 as European buyers turned to other markets after the Ukraine war, Russian deputy PM says.

Gas prices displayed on a pump at the newly-opened Jio-BP gas station in Mumbai, India
Fuel prices displayed at a pump in Mumbai [File: Dhiraj Singh/Bloomberg]

Russian oil sales to India surged more than 22-fold last year as European buyers turned to other markets following the conflict in Ukraine, Russia’s deputy prime minister has said.

“Most of our energy resources were redirected to other markets, to the markets of friendly countries,” Alexander Novak said in comments carried by Russian news agencies on Tuesday.

“If for example, we take oil supplies to India, they increased 22 times last year,” he said.

Russia shifted its oil exports to India and China last year as European Union nations sought to end their reliance on Russian energy supplies after Moscow sent troops into neighbouring Ukraine.

The EU imposed an embargo on seaborne Russian oil in December alongside a price cap on Russian crude that was agreed with the Group of Seven industrialised powers.

The shift has meant cheaper Russian energy imports for “friendly” countries, mainly China and India.

Novak said energy revenues accounted for 42 percent of Russia’s federal budget in 2022 and that the country’s energy industry was sustainable, despite the challenges faced by Western sanctions.

Novak, who is in charge of Russia’s energy sector, also noted that supplies to China were increasing as a “result of the great work that has been done in the industry”.

Russia, a major producer and key ally of the OPEC oil cartel, cut crude production by 500,000 barrels per day this month in response to the Western sanctions.

Novak announced last week that the output reduction, which amounts to 5 percent of daily production, would continue through June.

He said the move was part of a response to Western penalties targeting Russia’s oil industry that aim to limit Moscow’s ability to finance its military.

The International Energy Agency this month said Russia’s oil-export revenue sank by almost half in February compared with last year.

Source: News Agencies