• 01/20/2025

Russia’s fuel exports face annual decline as refining slumps – Bloomberg

Pravda Ukraine

Russia’s seaborne fuel exports will plummet this year due to reduced processing volumes at the country’s refineries, which have been redirected to focus on the domestic market following orders from Moscow.

Source: Bloomberg

Details: Seaborne oil product exports from Russia averaged around 2.2 million barrels per day in 2024, marking a 9% decline from the previous year and a 10% drop compared to 2022 when Europe was still importing Russian fuel.

These figures represent a sharper decline than the drop in Russia’s domestic refining, which fell by about 3% in 2024 compared to the same period in 2023.

In light of Ukrainian drone attacks, Russia has tasked its refineries with prioritising the domestic market, a move that could further deplete the country’s export volumes.

Western sanctions targeting the Kremlin’s energy sector have had minimal effect on Russia’s ability to export fuel. In response to the loss of US and European markets, Russia is redirecting its fuel exports to new markets in Asia, the Middle East, and Africa.

Approximately 20% of Russian fuel is now shipped to Türkiye, while 11% is sent to China. Additionally, around 17% of Russian diesel and gas oil exports this year have gone to Brazil.

Background:

  • The Group of Seven (G7) countries are considering ways to tighten the price cap on Russian oil to better curb Moscow’s ability to finance its war against Ukraine.
  • The Novoshakhtinsk Oil Products Processing Plant, the largest in southern Russia, has shut down both primary oil refining units following an attack by Ukrainian drones.

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https://www.pravda.com.ua/eng/news/2024/12/20/7490053/