Ministry of Energy: Russia redirected the entire volume of oil that fell under the sanctions

Russia was able to redirect the entire volume of oil that fell under the sanctions. This was announced by Minister of Energy Nikolai Shulginov during the final meeting of the collegium of the Ministry of Energy of Russia.

“Already today we can state that we managed to completely redirect the entire volume of exports that fell due to the embargo, there was no decrease in sales,” he said (cit. according to RIA Novosti).

According to Shulginov, an important task against the backdrop of sanctions was not only to maintain the level of oil production and refining, but also to maintain federal budget revenues from exports at the same level. “For this, intensive work is underway to reorient the supply of oil and oil products to the countries of Asia, Africa, Latin America and the Middle East,” Shulginov added.

Earlier, Deputy Prime Minister of Russia Alexander Novak also informedthat Russia was able to redirect most of its energy resources to friendly countries, including India and China. In particular, according to the results of last year, the volume of oil supplies to India increased by 22 times.

From December 5, 2022, the price ceiling for Russian oil introduced by the G7 countries (G7, includes the UK, Germany, Italy, Canada, USA, France, Japan) and the European Union (EU) is in effect. It is set at $60 per barrel.

Later, a limit was also set for export prices for expensive oil products from Russia (for example, diesel) at $100 per barrel, and for cheaper ones (fuel oil) at $45 per barrel. The measures came into force simultaneously with the ban on offshore shipments of oil products from Russia to the EU on February 5.

In response to the price ceiling, Russian President Vladimir Putin banned supplies of Russian oil and oil products to foreign companies and individuals, if the contracts directly or indirectly provide for a cap price mechanism. According to the decree, the measure is applied at all stages of deliveries to the final buyer. The ban came into force on February 1, 2023; for oil products, the date will be additionally determined by the Russian government.