India remains key buyer of Russian oil as Moscow's crude exports stay above pre-Ukraine war levels: Report

Russian oil exports may have dipped over the past year, but shipments remain higher than they were before Moscow launched its full-scale invasion of Ukraine in 2022, according to a new report released Tuesday (Feb 23). As per the report, of this, about 93 per cent of crude was exported to China, India, and Turkey.

Russia's oil export continues unabashed

An analysis by the Centre for Research on Energy and Clean Air, a Finnish think tank, found that crude export volumes in the fourth year of the war were still about six per cent above pre-invasion levels. That is despite multiple rounds of Western sanctions aimed at squeezing Russia's energy income and targeting its so-called 'shadow fleet'.

The shadow fleet refers to older tankers with murky ownership structures that are used to move oil outside the formal system, often bypassing European Union, US and G7 restrictions.

Russia crude revenue falls

According to AFP, even as the crude export volumes stayed relatively strong, compared with the previous year, the warring nation's earnings from crude exports fell 18 per cent to 85.5 billion euros in the 12 months leading up to February 24.

Export volumes during the same period dropped six per cent to 215 million tonnes. However, China, India and Turkey accounted for 93 per cent of Russian crude exports during the period studied, the report said.

Russia has been forced to offer discounts on its oil, cutting into profits that help finance the war effort.

"We've seen a significant drop in Russian fossil fuel export earnings as a result of new measures and greater enforcement," said Isaac Levi, a CREA analyst and co-author of the study. But he added that "there are still significant loopholes and areas that have been unaddressed by sanctioning countries" that allow large volumes to flow.

Among the weaknesses identified are ships operating under false flags and the re-export of refined fuels made from Russian crude to countries that have imposed sanctions.

CREA is urging tougher steps. "We propose a ban of imports from any refinery or storage terminal that has received a shipment of Russian oil in the previous six months," Levi said.