Western sanctions once morest Russia have indeed impacted the country. According to the Russian Deputy Prime Minister in charge of Energy, Alexander Novak, Russian gas exports “decreased by 25.1%” in 2022 for a total production “of 673.8 billion m3”.
The collapse of gas exports is due “the refusal of European countries to buy Russian gas, as well as the sabotage of the Nord Stream 1 and 2 gas pipelines”, he said in an article published on the specialized Russian site “Energy Policy”. The Deputy Prime Minister refers to the act of sabotage which affected the two facilities at the end of September, causing three large gas leaks off the Danish island of Bornholm, between southern Sweden and Poland. An event following which the Russian security services (FSB) opened an investigation for “act of international terrorism”.
Another cause of the decline in Russian exports denounced by the Deputy Prime Minister: the European Union, formerly the largest customer of Russian gas, drastically reduced its imports during the year 2022. In 2021, approximately 45% of imports from natural gas came from Russia, that is to say 155 billion m3 out of the 400 billion cubic meters of gas consumed by the Twenty-Seven. In 2022, the latter managed to reduce these imports by 55%, with the aim of limiting Moscow’s income intended to finance its military offensive.
Russia compensates with the Asia-Pacific region
If it has lost its European client, Russia has, at the same time, moved closer to the others. The Russian Deputy Prime Minister thus welcomed “to see the growth potential of gas supply in the Asia-Pacific region”with China in the lead, to which gas deliveries via the “Siberian Force” gas pipeline in the Russian Far East ” increased by 48% and reached a historic high of 15.4 billion m3 in 2022. In fact, the Europeans have virtually stopped importing Russian gas by pipeline, but they continue to buy lesser quantities of liquefied natural gas (LNG), from numerous Russian reserves and transported by sea on LNG carriers. Its exports all over the world “increased 7.9% last year”at 45.7 billion m3, noted Alexandre Novak on Monday.
Revenues thanks to oil, despite embargoes
On the black gold side, Russia has also managed to generate profit. And this, despite Western sanctions. After adopting an embargo on crude oil in December and a cap on its price, the European Union as well as the G7 and Australia adopted these same two measures which apply, this time, to refined petroleum products from Russia. Yet the country increased its oil exports by 7.6% in 2022, to 242 million tonnes. Particularly energy-consuming countries, India and China, in fact, greatly increased their demand for Russian crude oil last year – benefiting from significant discounts and the reorientation of Russian strategy towards Asia -, just like Turkey for example. ” This year, it is planned to deliver more than 80% of oil exports and 75% of oil products to “friendly countries“, said Alexander Novak on Monday.
But the second embargo, on refined products, might have a greater impact on Moscow. Because China, India and Turkey already have significant refining capacities and should therefore be less interested in products already refined by Russia, and therefore, this time, should not replace European customers. The only solutions for Russia: grant a very significant discount for certain customers in Asia or reduce the activity of its refining capacities, which will lead to a further significant loss of income.
More penalties to come
Especially since other sanctions should see the light of day. The President of the European Commission, Ursula von der Leyen, announced last Thursday from Kiev that the EU was planning new ones, on the occasion of the anniversary of the invasion of Ukraine. “By February 24, exactly one year following the start of the invasion, we aim to put in place the tenth sanctions package”she said at a joint press conference with Ukrainian President Volodymyr Zelensky.
“Today, Russia is paying a heavy price as our sanctions are eroding its economy, setting it back a generation”she welcomed.
(with AFP)
