Russian Oil and Gas Export

Issues and Prospects

 Issues
• The US & EU sanctions: sanctions on the Russian oil maritime
transportation (December 5, 2022) and the ban on the oil products
(February 5, 2023); ban on the oil insurance and financing operations
for oil sold above the price cap.

• OPEC+ deal: limit on crude oil production at 9,5 million barrels per
day; stabilization by coordinating supply cuts and supply increases.
 Issues
• Indian pressure: reduces purchases even having a discount, switches to
supplies from Saudi Arabia, intends to use rupee for bargains.

• Houthi attacks in Red Sea: attacks in the Bab el-Mandeb Strait, the
main shipping route. Saudi Arabia, the United States and Israel are
enemies, so their trade ships are the targets. Shipowners, including the
giants MSC, Maersk, CMA CGM redirect their containerships on a
long route bypassing Africa.
 Prospects
• After the strikes on Houthi bases, oil prices and Russian oil
companies’ shares increased.

• In case of all sanctions applied oil export level can be 40-50% less
than current level to 2030.

• Strong demand in Turkey, Brazil, Singapore

Russian Oil and Gas Export
Issues and Prospects