According to Russian Deputy Prime Minister Alexander Novak, oil sales to India increased more than 20 times in 2022, amidst the Ukraine conflict, which led to a decrease in European buyers of Russian oil. In an effort to reduce their dependence on Russian energy supplies, European countries turned to other markets, prompting Russia to increase its oil exports to India and China last year.
The European Union placed an embargo on seaborne Russian oil in December and agreed on a price cap on Russian crude with the Group of Seven industrialized powers. As a result, Russia’s energy imports became cheaper for China and India. Novak, who oversees Russia’s energy sector, said that supplies to China are also increasing due to the industry’s great work.
Russia is a major producer of oil and a key ally of the OPEC oil cartel. In response to Western sanctions, Russia recently announced a cut in crude production by 500,000 barrels per day, which represents about 5% of daily production and will continue through June.
However, the International Energy Agency reported this month that Russia’s oil-export revenue dropped by nearly half in February compared to the previous year.
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