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WSJ: Western sanctions have collapsed oil exports from Russia by 22%

December 29, 2022
in Daily News
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Oil exports from Russia collapsed by 22% in December due to Western sanctions and warm weather, which affected the demand for fuel. This is reported by The Wall Street Journal with reference to the analytical agency Kpler.

According to the agency, in December, sea exports fell to 2.5 million barrels of oil per day, and among the countries Russia has only four partners left: India, China, Turkey and Bulgaria, for which the authorities of Western countries made a temporary exception.

“The warm winter has made adjustments, the demand for Russian oil has fallen this month. Also, export volumes were affected by a drop in demand in China, ”says Matt Smith, an analyst at Kpler.

Since December 5, the oil embargo of the European Union has been in effect on the supply of Russian oil and a mechanism has been introduced for capping oil prices from Russia. The ceiling is set at $60 per barrel, all deliveries at a price higher are automatically deprived of Western services in the areas of insurance, finance, logistics, etc. The Russian side claimed that it would not supply oil to countries that would support the Western mechanism.

On Tuesday, December 27, Russian President Vladimir Putin even published a response to the "Western ceiling", but it does not contain any harsh measures, and the wording of the document is so vague that it retains a wide space for continuing cooperation with Moscow, without violating Western sanctions. However, Russia has already been forced to comply with the "Western ceiling": several Western-insured tankers sent oil to India in December, indicating sales under Western restrictions.

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