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Russia says it has successfully rerouted all the oil it would have sold to the West to 'friendly' nations

Markets Insider 3/28/2023 jsor@insider.com (Jennifer Sor)
Russia's Prime Minister Vladimir Putin (R) visits the Novokuibyshevsk oil refinery near the city of Samara, Russia. Reuters/RIA Novosti © Reuters/RIA Novosti Russia's Prime Minister Vladimir Putin (R) visits the Novokuibyshevsk oil refinery near the city of Samara, Russia. Reuters/RIA Novosti
  • Russia says it has rerouted all the crude it would have sold to the West, Reuters reported.
  • Official implied Russia has offset the impact of sanctions imposed since its invasion of Ukraine.
  • The nation has ramped up its energy trade with "friendly" nations across Asia, African, and the Middle East. 

Russia says it has successfully rerouted all the oil it would have sold to the West to "friendly" countries, claiming to have overcome the trade restrictions imposed on its top export.

"I can say today that we have managed to completely redirect the entire volume of exports affected by the embargo. There was no decrease in sales," Russia's energy minister Nikolai Shulginov said at an event on Tuesday, per Reuters.

Shulginov said Russia had largely rerouted oil that would have been sold to the West to customers in Asia, Africa, the Middle East, and Latin America. India, in particular, has significantly increased its oil trade with the nation, with sales jumping 2,200% over the last year, according to Russia's deputy prime minister Alexander Novak.

That comes several months after the European Union banned most imports and slapped a $60 price cap on Russian crude. The bloc also banned Russian oil trade using western shipping and insurance services, unless oil is sold under the $60 cap.  

Foreign policy experts said sanctions had the potential to splinter Russia's economy, though Putin rebuffed trade restrictions as "stupid" and vowed to ramp up oil trade to the nation's allies, who have been snapping up more Russian crude at hefty discounts.

Novak said Russia would continue to focus on exporting its energy commodities to allies, though industry professionals have warned there could be more obstacles ahead. Gazprom CEO Alexander Dyukov said 2023 would be a more difficult year for Russian oil suppliers, as sanctions will continue to exert pressure on the industry.

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