- Both countries account for 90% of Russian oil imports. Europe has considerably reduced demand, but the increase in demand in other countries has increased the total export of Russia. However, as a result of lower prices, Russia receives less revenue despite selling more.
Russia is selling more oil than before the war in Ukraine, particularly thanks to the agreements with China and India. Currently, both countries receive 90% of Russian oil exports. According to the Kpler Ports Analytics, each country imports 1.5 million barrels a day.
China was also the leading Russian oil buyer before the war. In 2021, a quarter of exports came to China. However, since February 2022, the Asian country has expanded its demand, as explained by a Yahoo Finance article.
However, in the case of India, the war in Ukraine and the discount on Russian oil have had a remarkable influence. The world’s third largest oil importer bought only about 1% of Russia’s imports before the war, now 51%.
European demand, in clear decline
Turkey and Bulgaria are the main Russian oil buyers after China and India. The purchase of these countries has allowed Russia to increase the total sales, although the European Union has considerably reduced the number of oil imports from Russia. Before the war, the EU received almost two-thirds of Russian gross exports, and today only 8%. The European Central Bank estimates that trade between the Euro area and Russia has halved since February 2022.
Lower penalties
Despite the increase in oil exports, Russian revenues have decreased as a result of falling prices. According to the International Energy Agency, in one year Russia’s total revenue has fallen by around 43%. Putin is facing the economic sanctions imposed on Russia as a result of the Ukrainian invasion. Among others, the European Union has banned EU countries from importing coal and diesel from Russia and bringing oil by boat.