Russia offers to sell oil to ‘friendly countries’ in ‘any price range’

WHAT YOU NEED TO KNOW:

• Russia’s energy minister said the country is ready to sell oil to “friendly countries” in “any price range.”
• Russia’s energy industry is suffering due to sanctions made by the West and some European countries.
• The energy minister didn’t specify which “friendly countries” he was referring to, but cargoes of cheap Russian oil have been heading to India and China.

Russia is ready to sell oil and oil products to “friendly countries” in “any price range,” according to Russia’s energy minister Nikolai Shulginov.

Reported by Izvestia newspaper, Shulginov talked about the state of the nation’s oil and gas industry. Russia is facing challenges due to boycotts and sanctions by the West and other allies over the country’s invasion of Ukraine.

He told the pro-Kremlin outlet on Wednesday that crude oil prices could reach $80 to $150 a barrel in principle. But he stressed that Russia is more focused on ensuring the functioning of the oil industry. Last month, global price benchmark Brent crude oil reached almost $140 a barrel and has since decreased to around $100 a barrel as of Wednesday.

Though the energy minister didn’t identify which “friendly countries” he was referring to, cargoes of cheap Russian oil have been heading to India and China. Neither country has openly condemned Russia for its attack on Ukraine.

India purchased about 12 million barrels of oil from Russia last year, making up only 2% of its total imports. India is the world’s third-largest consumer of oil.

China’s large state oil refineries are not signing new contracts for Russian oil but smaller independent refiners are still discreetly purchasing Russian oil, according to Reuters.

Russia is the third largest oil producer in the world. Despite boycotts and sanctions, it will still gain nearly $321 million from its energy exports this year — 36% more than in 2021, Bloomberg Economics reported in April.

Last week, the Europe Union (EU) approved a coal ban from Russia and is also considering an oil ban. However, the EU — a major customer of Russian oil — has not mentioned banning natural gas as Europe is still heavily relying on piped gas from Russia.

A report released Sunday by the World Bank said the Russian economy is expected to contract 11.2% in 2022. Russia’s oil and gas revenue in March was also 38% lower than Russia’s finance ministry had forecasted on March 3, according to data from the ministry, published Tuesday.

Source: Business Insider