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Russia’s Oil Shipments Crash Across Major Ports as Buyers Shift Away Under US Sanctions
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![Photo of Cyril Barabaltchouk]( "Photo of Cyril Barabaltchouk")
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Russian oil exports have sharply declined, with key buyers in India and China moving away due to US sanctions against major producers Rosneft and Lukoil, The Moscow Times reported on November 20.
According to Gazprombank’s price index center, shipments from the Primorsk port, the largest export hub for Russian oil in the Baltic Sea, dropped by 73%, falling to just 43,000 tons per day in the week ending November 16.
The port, which typically exports nine tankers a week, dispatched only three, with destinations including Turkey, Egypt, and one unknown. Similarly, Ust-Luga port saw a 40% decline in exports compared to last year, while exports from Novorossiysk on the Black Sea also plummeted after a drone strike halted operations for three days, according to The Moscow Times.
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Overall, Russia’s maritime oil exports have fallen to their lowest level in a year, with a 13% weekly drop and a 30% decrease compared to last year. Greek tanker companies, previously the only European carriers dealing with Russian oil, have also halted their operations.
The price of Urals crude has dropped significantly, with discounts reaching $23 per barrel, and prices in the Baltic ports falling as low as $36, The Moscow Times stated.
As a result, Russia’s oil export revenue has decreased, potentially leading to a budget shortfall of around 3,7$ billion in the coming months, forcing the government to dip into its National Wealth Fund to cover the deficit.
Previously, it was reported that Russia’s flagship Urals crude has fallen to its lowest price in more than two and a half years, just days before sweeping US sanctions on Rosneft and Lukoil—the country’s two largest oil producers—come into force, Bloomberg reported.
-e027084132fee1ae6b313d8b1d5dfc34.jpg "SBU Reportedly Strikes Russian Oil Platforms for the Second Time This Week in the Caspian Sea")
