Despite Western sanctions, Russian oil exports reached a near three-year high in March, according to the International Energy Agency (IEA). However, oil revenues were down significantly from last year. The West imposed a series of sanctions on Russia after Moscow's invasion of Ukraine in February 2022, including price caps on crude and oil products, and EU embargoes. In response, Russia cut its production by 500,000 barrels per day, while the OPEC+ oil cartel shocked markets by announcing output cuts earlier this month. Nevertheless, the IEA reported that total oil shipments from Russia rose by 600,000 barrels per day to 8.1 million barrels per day last month.
According to the Paris-based agency, much of the increase was due to a rise in exports of oil products, which returned to pre-Covid levels and climbed by 450,000 barrels per day to 3.1 million barrels per day. Crude exports rose by 100,000 barrels per day to five million barrels per day. India replaced China as the main destination for Russian shipments in Asia in March. While Russia's oil revenues rebounded by $1 billion to $12.7 billion, they were still down 43 percent compared to a year ago. The IEA said the data indicates that sanctions and OPEC+ production cuts have not had a significant impact on Russian oil exports.
The increase in Russian oil exports is a positive sign for the country's oil industry, which has been hit hard by the pandemic and falling oil prices. However, the drop in oil revenues shows that the industry is still facing significant challenges. The IEA's report suggests that the sanctions and production cuts have not yet had a significant impact on Russia's oil exports, but it remains to be seen whether this trend will continue. With the ongoing geopolitical tensions and the uncertainty surrounding the global oil market, the future of Russia's oil industry remains uncertain. Nevertheless, the increase in oil exports is a welcome development for the country, which relies heavily on oil exports for its economic growth.
