Russia will find new buyers for your oil, natural gas and coal both at home and abroad, as some traditional customers refuse their deliveries, the Russian president said, Vladimir Putin.
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While most countries have not imposed direct sanctions on Russian energy sales in retaliation for its invasion Of Ukraine, shipments have slowed as buyers look to source elsewhere or run into logistical issues.
In a meeting Wednesday with government and business officials, the Russian leader publicly acknowledged, for the first time, that the nation has export problems that require a solution.
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“As for Russian oil, gas and coal, we will be able to increase their domestic consumption, stimulate more complexity in the processing of raw materials and increase the supply of energy to other parts of the world, somewhere where they are really needed.“Putin said at the meeting, which was broadcast on the Russian state television channel Rossiya 24.
Many key traditional buyers refuse to receive shipments of Russian oil, or have promised to do so once the contracts expire.
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The nation has been able to redirect some oil flows to Asia, attracting buyers at deep discounts.
USA has completely banned imports of oil and by-products from the nation, and the United Kingdom will do the same at the end of the year.
In the first six days of April, Russian production registered the Biggest drop in nearly two years to about 10.52 million barrels per day, according to calculations by Bloomberg based on data from the CDU-TEK unit of the Ministry of Energy.
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The decline of almost 500,000 barrels per day from March production levels was due to excess stocks in Russia’s oilfields and refineries.
The IEA anticipates that the production of the country will be reduced by 1.5 million barrels per day in April.
As for coal, Japan and the European Union they plan to phase out Russian supplies.
The EU has indicated it is open to broader energy restrictions as the Kremlin’s military aggression in Ukraine shows no signs of easing, but has not agreed to any sanctions on natural gas.
BLOOMBERG
