Punished by Europe, Russia says it has redirected almost all its oil exports to Asia.

Despite Western sanctions pressuring Russia over its offensive in Ukraine, its oil-based economy appears to be doing well. Russia’s Deputy Prime Minister in charge of energy, Alexander Novak, announced on Wednesday that the country had almost completely redirected its oil exports to China and India, generating revenues at levels comparable to 2021 levels before the conflict.

One of the main EU sanctions was to reduce EU supplies of Russian oil by 90% from the end of 2022, the European Commission recalls. In addition to this embargo, the West also wants to impose a cap on the price of oil sales in order to seriously affect Russia’s revenues.

But, according to Alexander Novak, Russia today sells 45-50% of its oil to China and 40% to India. “If previously we supplied 40-45% of the total exports of oil and petroleum products to Europe, we expect that by the end of the year this figure will not exceed 4-5%,” the minister explained in an interview with the publication. Russian TV channel Russia 24.

Other countries are interested in Russian oil

He welcomed the fact that, despite restrictions imposed by the West on its hydrocarbons, “the Russian energy and oil complex was developing successfully in 2023.” “Many people want to buy Russian oil and petroleum products. These are Latin American countries, African countries and other countries in the Asia-Pacific region,” said the Deputy Prime Minister in charge of energy.

According to him, Russia’s oil and gas revenues this year will amount to almost 9 billion rubles (about 88 billion euros) or “roughly the level of 2021” before sanctions. The hydrocarbon industry accounts for 27% of Russia’s GDP (Gross Domestic Product), and their sales abroad account for about 57% of the country’s total exports, he added.

At the end of November, Russia, together with other OPEC countries (OPEC and its allies), including Saudi Arabia, decided to emphasize oil production cuts in order to stimulate prices. A way for Moscow to increase its revenues from the sale of hydrocarbons.